Fintech, an option for financial inclusion in Ecuador

Abstract

Financial inclusion in most developing countries is a goal of the DAVOS 2030 Forum, a global initiative to build a more sustainable and inclusive world, which covers various aspects such as sustainable development and inclusion with regard to access to essential services, opportunities and rights. In Ecuador, a significant part of the population lacks access to traditional banking services, so these companies offer efficient, economical and accessible solutions, through mobile applications, online platforms and other digital means, which can be more accessible and profitable than physical bank branches. Its need is justified by the existence of limited financial infrastructure in rural areas, inadequate documentation and lack of trust in financial institutions prevent many people from accessing banking services; In this context, Fintech-based companies offer innovative solutions to provide alternative services to those who do not have access to traditional banking services, improving their financial well-being and contributing to the economic growth and general stability of the country. By incorporating more people into the formal financial system, Fintechs can stimulate economic activity, increase savings and facilitate access to credit. In the main, it is concluded that loans through Fintech platforms allow access to timely and low-cost financing, creating a new form of capital flow for productive, service and social projects.