Digital Savings by Alfredo Cardoso

Friday November 18, 2022

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The digital transformation, that is so much talked about nowadays, involves the approach and application of technology in all daily aspects of life. This change has allowed many industries to change their business models, the interaction with their consumers and the way they seek new opportunities, among other aspects. On the other hand, as people have more and more access to a smartphone, a window of opportunity opens up allowing to get information, buy or communicate with companies that provide financial options.

Technology has changed the form of payments, money management, access to credit, exchange rates, among others. However, there is still a lot of work to be done, especially in the area of savings. Why do less than 20% of Peruvians in our country save only formally? Lack of confidence, lack of financial education, economic informality, or a bad image of banking? It is all this and more.

According to information from ASBANC, in Peru, 11.32% of the population saves outside the financial system. In 22% of the cases, they do it by saving money with family or friends, or at home (76%). And of those who do, the majority opt for savings accounts that pay less than 1% in OER. Only 1% of Peruvians save in time deposits, that offer higher rates. These are figures that reveal an incipient financial reality in our country.

Now, Peruvian savers also have other modalities outside the banking system, such as the so-called “juntas” or “cadenas”, which are very well-established in the country. There are also other forms of savings in the region: in Colombia they are “natilleras”; in Bolivia, “pasanaku”; in Mexico, “tanda”; and in Chile, “pollas”, mechanisms used in family, friends or work colleagues’ spaces where money is collected, person to person. As we can see, there is always a willingness to save, which is why betting on digital could be a great alternative for new consumers.

The decision to access savings and investment products or other financial options today has an ally that the market is not taking 100% advantage of: digital. Fintech, technological and financial ventures have seen in this gap an opportunity to democratize access to financial formality, since consumers are exploring digital by leaps and bounds and more information and financial culture is needed.

In this sense, just as there are virtual markets (or marketplaces) to buy service goods, today there are also these digital spaces to get interested, learn or access various savings and investment options that fit your needs. Saving in all its forms is a good sign. If it is informal, it is certainly more risky and it also limits the possibilities of accessing other opportunities offered by the system; but savings without a good dose of financial inclusion will limit the true growth of a country.

Alfredo Cardoso
Co-founder of Master’s degree in Administration from ESAN. Business Administrator from the University of Piura. Lecturer in finance and consultant in financial planning. Entrepreneur with experience in planning, financial and commercial management in both retail and banking sectors in leading companies in their category. Specialist in financial product development and campaigns focused on middle and emerging segments.