Mobile banking and digital payments (“m-payments”) were already core features of government development policies aimed at beefing up digital infrastructure, increasing the visibility of the informal economy, and providing a low-cost way of bringing financial solutions to marginalised populations. International organisations also promoted m-payments to increase financial inclusion in bottom-of-the-pyramid markets around the world. From the private sector, banks developed innovative strategies and developed new digital products to reach a broader number of unbanked and under-banked consumers through smartphone applications (apps).
The COVID-19 pandemic accelerated digitalisation and digitisation globally. Furthermore, social distancing, remote working, and increased digital transactions imply that societies have become more reliant on non-physical forms of communications.
The COVID-19 pandemic accelerated digitalisation and digitisation globally. Furthermore, social distancing, remote working, and increased digital transactions imply that societies have become more reliant on non-physical forms of communications. During the pandemic, many Latin American governments used stimulus payments to mitigate the economic and financial effects of the lockdown. Vendors and consumers quickly abandoned paper money for fear of transmitting the virus and increasing the contagion rate. One year into the pandemic, a realisation emerged that the digital innovations implemented during the pandemic increased the efficiency of firms, particularly for the services sector. Many have predicted that such innovations will remain in place post-pandemic, forming part of what has been called the “new normal”.
The Colombian government, like other countries in Latin America, initiated measures to reduce the economic impact of social distancing for marginalised populations,
