Financial Inclusion Through Digital Banking: The case of Peru

Peru is currently considered one of South America's key emerging markets, with a significant recent history of economic stability. Nevertheless, the same country is also known for having one of the lowest financial inclusion rates in the region. To fight this latter aspect, the Peruvian government developed an interoperable mobile money platform, based on a digital electronic wallet for the unbanked, called the Billetera Móvil (BIM). Based on this mobile wallet, the purpose of this study aims to debate how financial inclusion may be facilitated by the banking sector’s digital revolution. It discusses the fundamentals of FinTech, with a particular emphasis on financial inclusion and associated concerns. Moreover, current research aims to contribute to the understanding of how the recent digital transition can benefit disadvantaged target groups. Field observation and a mixed qualitative and quantitative approach allowed collecting empirical data to support the research findings and discussions. It was found out that, even though there is an effective potential for the digital transition to be impactful in the financial inclusion of the unbanked, a long path has yet to be crossed to achieve a successful result with this inclusive e-wallet.