CAF supports the strengthening of the national financial inclusion strategy in Panama

CAF -development bank of Latin America- strengthens its role as Panama's strategic ally by proposing the design of a national financial inclusion strategy, based on the findings of a measurement instrument that constitutes a diagnosis or baseline, which highlights some of the country's consonances and particularities with the rest of the region for the formulation of public policy. 

Based on the results of the Financial Capabilities Survey, which the multilateral institution developed in 2022, “different objectives are proposed, from improving education and financial capabilities of the population, because without financial education there is no financial inclusion,” said Diana Mejía, Senior Specialist of CAF's Private Sector Technical Analysis and Evaluation Directorate. 

Mejía stated that it is vital “to start talking about financial education from childhood in order to generate financial knowledge, attitudes and behaviors that have a fundamental effect on better financial decision-making and, therefore, on financial inclusion”. 

An advantage for Panama is that the analysis does not show a gender gap in terms of ownership of financial products such as savings accounts, which was highlighted by Kathy de Guardia, director of International Affairs and Projects of the Superintendency of Banks of Panama (SBP). “Almost 57% of women have bank accounts,” said de Guardia. 

However, CAF sees opportunities for improvement in the involvement of women in household financial decision-making, where there is a gap of 9 percentage points with respect to men. Women are not being able to respond to financial shocks in the same way as men and are using digital financial services to a lesser extent, so CAF points out that these gender differences should be taken into account when designing financial products and financial education programs. 

Therefore, strengthening the implementation of the national financial inclusion strategy is a determining factor for CAF in its accompaniment of the SBP, considering several measures: first, financial education; second, strengthening all consumer protection schemes; third, achieving greater penetration of financial products and services; and finally, strengthening the use and accessibility of financial products and services in vulnerable populations. 

In general, in Panama there is a percentage of account ownership of around 50%, a figure that is also in line with the latest figures from other multilateral organizations. 

Under the multidimensional understanding that financial inclusion is a means for individuals, families and businesses to achieve greater financial wellbeing or health, CAF considers other components such as the use and quality of financial products and services. For this reason, it advocates the importance of understanding the needs of the different segments of the population, especially the most vulnerable, in the design of customer-oriented financial products. 

CAF's statements were made in the context of a panel, organized by the SBP, with the participation of: Diana Mejía, Senior Specialist of the Private Sector Technical Analysis and Evaluation Department at CAF; Kathy de Guardia, Director of International Affairs and Projects of the SBP; Amalia Toro, Social and Office Manager for Panama at McKinsey & Company; and Eric Sablich, Institutional Relations Manager at Credicorp Peru. 

Superintendent Amauri Castillo and CAF's representative in Panama, Lucía Meza, thanked the panelists for their findings and recommendations, reaffirming the commitment of both partners to ensure better financial inclusion, and thus greater social cohesion.