SANTO DOMINGO— Saving consistently, creating a monthly budget, or opening a bank account remain challenges for thousands of Dominican families who are excluded from the formal financial system. However, an initiative developed in communities in La Vega demonstrates that combining financial education, technological innovation, and support for small businesses can be a tool to reduce this gap.
According to the results presented by the United Nations Development Programme (UNDP), more than 200 people participated in the project "Biometric Payments and Financial Inclusion", an initiative developed together with the Cibao Savings and Loan Association and local organizations in the communities of Villa Francisca I, Villa Francisca II and Naples.
One of the program's main findings was the change in participants' financial habits. According to the UNDP, six out of ten people began saving at least 10% of their income, creating family budgets, and gaining a better understanding of how to use financial products to manage their resources and cope with unexpected events.
Women lead financial change
The organization highlighted that 88% of the beneficiaries were female heads of household, who received training on savings, financial planning, entrepreneurship, responsible use of credit and digital payment tools to strengthen their economic autonomy and the financial stability of their households.
In addition to acquiring knowledge, many of them entered the financial system for the first time by opening savings accounts and accessing debit cards, facilitating safer transactions and reducing dependence on cash.
Innovation has also reached the corner stores
The project incorporated a pilot component of digital payments through electronic wallets such as Apple Pay and Google Pay, using biometric authentication and two-factor security to carry out transactions in community stores.
According to the UNDP, the experience made it possible to bring technologies usually associated with large urban centers closer to local communities, evaluating their potential to expand access to digital financial services.
Training that resulted in higher income
The initiative also included strengthening small businesses through the En Marcha methodology, aimed at improving the administration, productivity, and competitiveness of ventures.
As a result, the two participating grocery stores increased their sales by 12% and recorded a 19% increase in daily customer traffic, demonstrating the impact that business training can have when combined with financial and technological tools.
A model that seeks to reduce financial exclusion
During the presentation of results, the UNDP explained that the project sought to bring financial services closer to communities that have historically faced greater barriers to access, integrating financial education, technological innovation and local economic development.
The organization's resident representative in the Dominican Republic, Ana María Díaz, stated that experience shows that financial innovation can also emerge from rural communities and small businesses, especially when it is geared towards strengthening women's economic leadership.
She also highlighted that the initiative established a methodology for training multipliers in financial inclusion with a gender focus, developed in conjunction with national and international institutions, with the purpose of extending this knowledge to other communities in the country.
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