The Dominican Republic has established itself as a leader in innovation within the ecosystem fintech in the region, promoting access to banking services. In 2023, 57% of the country’s Financial Intermediation Entities had already established strategic alliances with companies fintechhighlighted Samuel Ramírez Garip, president of the Dominican Association of Fintech Companies (Adofintech).
He Inter-American Development Bank (IDB) has identified the country as a market fintech emerging market, notable for its rapid growth. In 2018, there were only six companies fintech in the country; by 2024, the figure rose to 65, which positions Quisqueya as the eighth economy with the most fintech in Latin America and the leader in Central America and the Caribbean.
Adofintech celebrated its fourth edition of the Dominican Fintech Forumin which some 300 national and international experts addressed opportunities and challenges of the ecosystem fintech in the region, where Ramírez Garip explained that the country is in a crucial moment of transition, where the fintech play a fundamental role in the economic progress of the country in the process of daily transactions.
The executive shared a performance summary of digital services companies, indicating that the use of technology in finance has grown exponentially.
The internet users banking increased by 17% in 2023 and a further growth of 12% is expected for 2024.
The electronic payment entities have experienced a significant increase in their operations from 24,000 in December 2022, to 256,000 in July 2024, reflecting a change in the way Dominicans carry out their daily transactions.
The vice president highlighted the potential of the sector
The Vice President Raquel Peña offered a few words during the second day of the event in which she urged entities of the financial system and other companies involved in economic transactions to develop a strategy of financial education that integrates the emerging technologiesto guide people on the tools that exist to receive services and manage products.
“Fintechs represent more than just innovation; they are democratising the access to financial servicesand they are the driving force behind a transformation that is breaking down barriers and creating opportunities for everyone,” he added before leaders and regulators of the country’s ecosystem, Latin America and the Caribbean, who analyzed the main trends in the industry.
Peña indicated that the companies fintech could strengthen the strategy of bankingto continue reducing the 50% gap of people who do not own any type of financial products in the country.
“Fintechs have forever transformed the way people and businesses interact with money across a whole range of revolution that goes beyond the technology“, held.
What’s new for the fintech
The president of Adofintech confirmed how quickly people adapt to the new technologieswhile detailing that they are preparing to address new challenges in the face of technological service.
“We are exploring and discussing emerging technologies such as artificial intelligence and blockchainwhich have the potential to further transform the financial landscape. We envision a future where transactions are faster, safer and more accessible to everyone, not just those of us who are already included in the system,” he said.
Despite the progress, Ramirez said that in Latin America still 80% of transactions are made in cash and more than 250 million people do not have access to financial services. “This represents a huge opportunity to innovate and expand the market,” he said.
Ramírez also highlighted the positive impact that the collaboration between the fintech and financial sectors has had, underlining Adofintech’s commitment to continue driving the growth of the sector. “We are honored to see the progress achieved and we remain firm in our commitment to take the Dominican fintech market to new heights,” he concluded.
