Lack of financial literacy and no acquisitive power + informal economy. Banks in Latam invest a lot in Credit Card penetration but they only can offer credit to people who are already embeded into the financial system through formalized payroll.
Many people in Latam aren't part of a payroll and make their living from the informal economy. Even if those people have the acquisitive power, Banks will never extend them a credit line because they don't have anything to demonstate a steady income besides their word.
Many people in Latam aren't part of a payroll and make their living from the informal economy. Even if those people have the acquisitive power, Banks will never extend them a credit line because they don't have anything to demonstate a steady income besides their word.