Having achieved great strides in financial inclusion over the past ten years, Galileo is now asking what the next decade will look like for Latin America. We believe quantitative success—getting more accounts to more people—must now be reinforced by qualitative achievements, translating new account holders into genuinely engaged financial actors.

In this article, we’ll be looking at how increasing financial literacy can drive this next stage of financial inclusion in Latin America.

The knowledge deficit

Latin America has seen a significant rise in bank accounts and digital adoption, yet a critical paradox is emerging: access to financial services is increasing, while financial literacy is lagging, and in some cases even declining.

In Mexico, despite a notable increase in financial product ownership, the adult population's financial literacy index actually declined slightly, from 58.2% to 57.9% in the same period. In Colombia, rapidly digitalizing financial services are not translating into improved financial literacy. And in Brazil, increased access to financial products has led to more indebtedness and income commitment among lower income individuals. 

These statistics reveal a financial literacy deficit, leaving many—often members of vulnerable groups—with access to financial products but without the necessary understanding to benefit from them. For example:

• In Colombia, despite 96.3% of adults having access to at least one financial product, only 35.5% effectively access formal credit. 

• In Mexico, 80% of older adults are banked, yet 30% rely on others for transactions due to inadequate financial literacy, making them vulnerable to fraud.

• In Brazil, a study found that women receiving funds via Bolsa Familia couldn't fully utilize this income due to a lack of budgeting and saving knowledge.

Additionally, a recent academic review confirmed widespread lack of financial knowledge, especially within marginalized groups like women, rural, lower-income, older, and younger consumers. 

Proactive financial education

To bridge this knowledge deficit, LatAm’s banks and payment providers must adopt a more proactive, comprehensive approach to financial education. This means ensuring consumers are not just “banked” or merely aware of new products, but genuinely empowered with the knowledge and reinforced with the right behaviors to use them effectively.

Banks must recognize there’s no one-size-fits-all approach to financial education; efforts must be tailored to each customer’s specific context. Young people, for instance, may struggle with impulse control, while older customers might not know how to leverage app investment options. Lower-income consumers may have intuitive knowledge of informal loans but be unaware of formal institutional alternatives.

Latin America’s largest neobank, Nubank, demonstrates how financial literacy can empower diverse income levels. Despite a customer base concentrated on low and middle-income individuals, Nubank maintains a default rate below market levels through smart tools and inclusive educational content. A 2024 study also showed that customers setting financial goals jumped from 62% before Nubank to 95.3% after acquiring a card or opening an account.

Other Brazilian banks are also finding novel approaches. For instance, Banco Inter’s Super App financeiro offers hyper-personalized experiences with integrated tools for managing income and investments. They’ve even used gamification for credit, where new clients earn limits by completing challenges like timely bill payments. Banco do Brasil has similarly expanded its financial education, introducing quizzes, workshops, YouTube channels, and even WhatsApp groups.

How Gustanomics can help

By applying the principles of our Gustanomics model—focusing on need, incentive, status, and engagement—institutions can move beyond simply providing access to genuinely empowering individuals.

This means:

• Need: Position your banking app as the trusted, pro-active guide for consumers navigating common financial literacy challenges.

• Incentive: Offer tangible rewards for continued financial education and improved financial behaviors, such as bonuses, discounts, or gamified challenges that unlock new credit opportunities.

• Status: Elevate financial literacy as a valued, shareable achievement through positive financial influencers and visible awards or certificates.

• Engagement: Ensure all financial education is accessible, interactive, and integrated into customers' daily experiences, using simplified, app-first learning, AI-powered personalized guidance, and innovative formats that reward continuous interaction.

The next decade of financial inclusion in Latin America hinges on a crucial shift: from access and awareness to knowledge and action. By proactively investing in tailored financial education, financial institutions can equip individuals with the confidence to go from passive account holders into active, engaged participants in their financial futures.

Discover how Galileo's comprehensive educational technology solutions can help you implement AI-powered financial literacy programs that drive customer engagement, improve portfolio quality, and create lasting competitive differentiation.