Published in November 2023, the “Opportunities to Foster Digital Financial Services Market Development in Guatemala” report examines how digital financial services can better serve low-income and marginalized populations, particularly women, while supporting the responsible growth of Guatemala’s financial sector. The market assessment was funded by USAID through the Digital Frontiers program, implemented by DAI, and conducted by ConsumerCentriX Inclusive Business.
The study addresses persistent gaps in financial inclusion in Guatemala, where many low-income households primarily interact with formal financial institutions through over-the-counter transactions to cash out remittances or government payments. Despite expanding the digital infrastructure, the adoption of digital financial services remains limited, particularly among women, Indigenous communities, and rural populations.
Rather than taking a broad or purely diagnostic approach, the research focused on specific population segments where there was a balance between potential impact and realistic readiness for digital uptake. These included international and domestic remittance recipients, domestic workers, and rural agricultural MSME retailers. The assessment combined qualitative fieldwork, stakeholder interviews, and prototype testing to examine financial behaviors, cash-flow patterns, and barriers to adoption from the customer perspective.
The findings challenge common assumptions held by financial service providers. While low literacy and lack of confidence are often cited as primary barriers, the research shows that trust, opaque fees, limited product relevance, lack of formal identification, and weak customer experience play a more decisive role. Participants across segments demonstrated regular income flows, access to smartphones, and openness to using digital tools when they deliver clear and tangible value.
The report highlights the importance of entry products linked to existing cash flows, such as remittances, salaries, and government payments, combined with high-touch on-boarding and customer education. It also highlights the role of regulation, national ID coverage, and coordination between public and private sector actors in enabling inclusive and sustainable digital financial markets.
Learn more from the report: Opportunities to Foster Digital Financial Services Market Development in Guatemala