Financial inclusion and Fintech: catalysts for the Sustainable Development Goals in Latin America

Abstract

Fintech are critical players in the inclusive digitalization of finance, helping to reduce inequality by providing access to a range of financial services that banks do not normally serve. They thus contribute to financial inclusion as a fundamental factor for sustainable development. The aim of the study is to assess how financial inclusion and Fintech growth contribute to the achievement of the sustainable development goals in Latin America. A quantitative approach is employed with a descriptive-correlational and longitudinal scope. It works with evidence based on information from six Latin American countries with the highest nominal GDP in US$ (Argentina, Brazil, Chile, Colombia, Mexico, Peru). The data analysis method used is Pearson’s correlation. The overall SDG index and the individual indices of SDG 2, SDG 7, SDG 9, SDG 16 and SDG 17 are significantly, positively and with a large effect size associated with the study variables on financial inclusion in Latin America. Examining the SDG9 Index in depth, it is the most statistically significant of all the SDG indices with related variables, both in terms of financial inclusion and in terms of measuring the Fintech ecosystem. This work contributes to promoting further research on the SDGs achievement, financial inclusion, and Fintech development in Latin America.