Publication: Opportunities to Foster Digital Financial Services Market Development in Guatemala
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
The Decisions Behind Aadhaar's Success Story
CONVERSATIONS AT BELLAGIO
The Decisions Behind Aadhaar's Success Story with Tanuj Bhojwani
The decisions behind Aadhaar’s success story revolves around big and small strategies. According to Findex data from 2014, only 53 percent of adult Indians had bank accounts. By 2017, that number had jumped to 80 percent and traditionally excluded demographics shared in these gains. Women saw a 30 percent increase in account ownership, and the poorest households saw a 40 percent increase. The remarkable addition of 300 million accounts in just a few years can be largely contributed to the Pradhan Mantri Jan Dhan Yojana scheme which mandates that every household has at least one bank account and the biometric ID Aadhaar which grants residents a unique identification number that can be used to access financial services. First available in 2010, Aadhaar is now used by 1.2 billion Indians.
However, beyond increasing the number of bank accounts, Aadhaar has become an integral component of several flagship government programs including the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and the public distribution system (PDS), two of India’s largest welfare programs. The biometric authentication helps ensure that the gains are delivered to actual beneficiaries, instead of fake or duplicates, thereby cutting food shortages. Currently, around 90 percent of all welfare recipients receive their government benefits through Aadhaar.
In this video, Tanuj Bhojwani, a representative for the iSpirit Foundation, shares his thoughts on the big and small decisions that made Aadhaar a success and why the user-experience for welfare beneficiaries has improved through the adoption of the biometric ID. Bhojwani recently participated in the “Identifying Practical Solutions to Accelerating Digital Financial Services for Inclusive Economies” conference where he shared the key lessons learned from India’s successful implementation of Aadhaar to key regulators from Indonesia, Egypt and Nigeria. To learn more about the conference click here
Estonia’s Digital Society with Kalle Palling
CONVERSATIONS AT BELLAGIO
e-Estonia: the Development of Estonia’s Digital Society with Kalle Palling
As governments around the world wrestle with challenges from technology, including data collection and cyber threats, Estonia might offer a blueprint for how to build a digital society. Taxes are completed online in under 5 minutes, 47 percent of citizens use internet voting, and 99 percent of Estonia’s public services are available on the web 24 hours a day. This digital integration of almost all of the government services is especially remarkable, considering the financial state of the country nearly 30 years ago.
Estonia was a relatively poor country when it regained independence in 1991 after the Soviet Union collapsed. To modernize the economy, it embarked on a series of fast-track reforms and adopted a digital approach from the start. Today, Estonia is home to more private companies valued at more than $1 billion, per capita than any other small country in the world.
In this video, Kalle Palle, MP of Parliament (Reform), shares his thoughts on Estonia’s digital revolution and the consistent need for government transparency and accountability when it comes to cyber security.
Palle recently participated in the “Identifying Practical Solutions to Accelerating Digital Financial Services for Inclusive Economies” conference at the Bellagio Center in Italy where he shared the key lessons learned from Estonia’s successful implementation of the digital ID to key regulators from Indonesia, Egypt and Nigeria.To find out more about the conference click here.