Although there have been monumental advances in building financial inclusion worldwide in recent years, substantial gaps remain. For instance, across the Americas, the financial infrastructures in the United States and Latin America have pronounced differences.
Some of the most important distinctions between these economies stem from technical barriers within business operations and products—barriers that often hinder companies’ ability to deliver inclusive experiences. Achieving full technical inclusion requires organizations to provide products and services to all members of society on equal terms, regardless of age, gender, location, or abilities.
To better understand the current landscape, Galileo created its Technical Inclusion Index, a benchmark study based on insights from financial and tech leaders across Latin America and the U.S. Notably, the survey found that deficiencies in technical inclusion can have tangible impacts on companies. It also revealed a roadmap that organizations can follow to tap into these underserved markets.
The Fragmented Landscape
There have been several notable impacts resulting from efforts toward technical inclusion across the Americas. Most prominently, roughly half of respondents reported that their organizations have lost 10% or more in potential business due to the lack of truly inclusive technology.
Additionally, around a quarter of respondents said their systems are not equipped to handle increased traffic during peak seasonal events, limiting their ability to deliver an inclusive experience. Nearly as many also reported that their organizations have delayed or cancelled 10 or more projects in the past year—initiatives that could have reached new customer segments.
For most leaders surveyed, the inability to provide inclusive products and services stems largely from technological shortcomings. Encouragingly, about 69% of respondents said that updating systems to better serve a broader market is a high priority for their organization.
However, there are some regional variations in how organizations are turning these intentions into action. When asked how likely their company was to prioritize inclusion in future modernization efforts, about three-quarters of U.S. leaders said it was likely or very likely—compared to just 69% of leaders in Latin America.
The Three Barriers
Despite these nuances, most organizations recognize that technology is the key to delivering a better customer experience. However, three main barriers often prevent companies from achieving full technological inclusion.
First, data siloes and the lack of interoperability between systems are major obstacles. Many organizations still relying on legacy technology have been forced to integrate multiple systems to meet customer expectations. While this may serve as a short-term stopgap, it ultimately leads to a disjointed experience for both the company and its customers.
As these systems and software are layered on top of one another, another barrier to inclusion emerges: incompatibilities between networks that often require manual workarounds.
Finally, security concerns can often inhibit efforts to make services more accessible. Although maintaining secure processes is critical to technical inclusion, balancing multi-device access with security requirements is frequently a struggle for many organizations.
One overarching pain point is how costly and cumbersome existing legacy systems are to maintain, even when regional variations come into play.
For example, U.S. companies typically spend more to maintain their legacy systems, while organizations in Latin America often feel the impacts of these systems more acutely. According to the Galileo study, 75% of Latin American leaders said their legacy systems limit inclusive delivery.
The business impacts of these issues can mount quickly. A lack of technical inclusion is causing organizations to lose business, postpone innovation projects, and deliver subpar customer experiences during peak shopping events.
The Modernization Imperative
Both Latin American and U.S. leaders now view modernization as a critical imperative. To achieve it, organizations must focus on four interconnected areas.
Businesses need to modernize their infrastructure and move beyond legacy systems that hinder scalability. They must break down siloes and integrate their data to gain full visibility into operations and their customer behavior.
At the same time, organizations must strengthen security—protecting customers without introducing unnecessary friction. And just as importantly, they must foster a culture that embraces technological change and promotes digital inclusion across the workforce.
Building and maintaining a system capable of achieving these goals is no simple task. To truly eliminate siloes, the system must be cloud-native. The implementation and upkeep of this type of system means that it must also be developer friendly. Finally, compliance with regional regulations and the security of users must remain at the core of the design.
Impacting Future Business Outcomes
Although these systems offer significant advantages once installed, the time and expense required for implementation remain major concerns for many organizations. As a result, businesses are often seeking solutions that can integrate seamlessly without requiring a full overhaul of their existing technology.
This is why many companies are turning to configurable platforms like Galileo’s, which allow both new and established companies to build and deliver innovative financial services. Using modern, open APIs, these platforms can connect various products to address a wide range of use cases.
Taking the initiative to implement a cloud-native infrastructure can deliver dramatic benefits for organizations—enhancing the customer experience, improving operational efficiency, and unlocking new revenue streams.
“These aren’t just tech things that happen in an IT vacuum, they are directly related to future business outcomes,” said Matthew Gaughan, Payments Analyst at Javelin Strategy & Research. said. “Making that clear is important, so leaders and decision-makers recognize the benefits of these different parts of the technology stack. They’re part of a broader modernization strategy, and they could translate into real returns and help you increase operational efficiency.”
