The sole aim behind the effort is to bring about financial inclusion in the region, IFC said in a statement.
As part of the agreement, they will identify financial institutions and partners to launch or expand digital bank joint ventures.
Fidor will assist chosen organizations in launching digital banks by sharing its own banking expertise and cutting-edge technology. Latin American organizations may also be allowed to make use of Fidor’s technology for compliance, risk management, and customer service.
“The benefits of financial inclusion are not only limited to individuals, and can help emerging countries’ economic and social development, as well as playing a significant role in empowering people and societies,” said Matthias Kröner, Founder and CEO of Fidor.
This is IFC’s second initiative in the past two months to boost financial inclusion in Latin America. Last month, it partnered with Accenture to launch a digital lab that will equip regional financial firms with cutting-edge fintech tools.
Across Latin America, millions of people have no access to banking services. Therefore, the IFC believes that extending access to finance will be the first stepping stone toward a better life for much of the population.
“As account holders, people are more likely to use other financial services, such as credit and insurance, start and expand businesses, invest in education or health, manage risk, and weather financial shocks, all of which can improve the overall quality of their lives,” says IFC.