Frame 10


Por Luis Gerardo Hernández

Health measures and social distancing, implemented by the health crisis caused by Covid-19, accelerated technological advances.

In El Salvador, as in Central American region, small, medium and large businesses were forced to interact more with final consumers, seeking to reestablish manufacturing chain, sale and distribution of goods and, in other cases, their services.

This doesnt mean that before March 2020, there were no native technological advances in El Salvador referring to technology and finance sector; Rather, the slowness with which the region was heading, in terms of FinTech and Financial Inclusion. El Salvador had an advance in traditional stores going to its e-commerce version. Also, the appearance of virtual payment methods, payment gateways, digital orders, etc., but especially, the most important thing was the consumer losing the fear of using these means of purchase to carry out and satisfy their needs with platforms created in a simple way that offer speed. in the services requested through the web interface.

This brings us closer to a digital ecosystem, perfect for FinTech developments; but, above all, the increase in Financial Inclusion of sectors that, due to the nature of their location, lack of access to the internet, a Smartphone device or the mere preference manifested in distrust for new digital processes, cut off a correct or complete development of business projects and national economic models.

El Salvador already has laws to facilitate Financial Inclusion, which regulates what is pertinent to the issuance of electronic money and the responsibility of the companies who provide it, savings accounts deposites with simplified requirements, data protection, etc .; a recently reformed Electronic Signature Law that will allow improvements in business efficiency, and will contribute to the long-awaited Financial Inclusion, bringing services such as microcredits and / or money transfers and payments (payments and remittances) closer to unbanked sectors. Without needing physical attention of the provider of their choice.

Furthermore, the approval of the Bitcoin Law, that provides access and use of intangible assets, provides too a tool for growth of the FinTech ecosystem.

This law becomes a dynamic element for the increase in users and an unprecedented digital transactions, opening  catalog of goods and services that can be offered to banked or unbanked people, promoting financial inclusion and the approach of technological sand financial services to people that for different reasons, were not used to the global trends in use of these digital channels and forms of payment.

As a region, we are immersed in challenges to face in terms of implementation of new technological extensions, the regulation of financial integrity, cybersecurity and personal data protection, a challenge that must be continually updated and developed by the growth of Fintech projects, which by their nature are dynamic and changing.

Por Luis Gerardo Hernández