In a region where close to two-thirds of the population do not have access to traditional banking, fintech is on the rise. With small economies, a heavy reliance on food imports, and the myriad risks Caribbean nations face – extreme weather, water scarcity, rising sea levels and habitat loss – fintech has the potential to offer many the lifeline they need.
According to a report by the Inter-American Development Bank, IDB Invest, and Finnovista, Latin America and the Caribbean have been seeing a fintech boom – specifically growth of 112% between 2018 and 2021.
One example can be found in Barbados, where the Bridgetown Initiative is working to revolutionize how developing nations access climate financing. A key tenet of its approach is the Barbados Blue Green Bank, a sustainable climate financial institution dedicated to innovation. The bank aims to support initiatives that are focused on climate change mitigation and adaptation. It has also implemented a comprehensive digital strategy to facilitate efficient risk management.
Other initiatives across the Caribbean include a complementary currency for trade, a marriage between e-commerce and agriculture, and a credit institution for farmers.
