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Financial Technology (Fintech) in Nicaragua

In Nicaragua about 2.9 million smartphones are in use, out of a total of 8.3 million active cell phone lines, according to the Nicaraguan Chamber of Telecommunications (CANITEL).

At the national level, 100% of the municipalities have cellular telephony, while 85% of the Nicaraguan population has mobile Internet coverage. At the regional level, Nicaragua has a higher cellular coverage than Honduras or Guatemala, according to statistics published by the World Bank.

The above indicates that in Latin America and especially in Nicaragua, we find ourselves at an extremely favorable moment in which several positive trends combine to give rise to a figure that is innovating the world of commerce in Latin America:

  1. There is an emerging young talent and expert in financial services and digital technology.
  2. There are entrepreneurial ecosystems.
  3. The vast majority of the population has digital technologies.
  4. In Nicaragua almost 45% of the GDP rests on MSMEs, being this sector the pillar of the national economy.

Fintech is a term that refers to the integration of “finance” and “technology” and is used to describe a phenomenon that has accelerated the pace of change in the traditional financial system, bringing innovation and differential value. The use of new technologies seeks to generate value solutions that transform each of the segments in the financial industry.


  • They have the potential to help provide services to social groups traditionally neglected by banks.
  • They tend to focus on large customer problems with innovative solutions.

It is important to point out that the Fintech sector is made up of two groups of entrepreneurs:

  1. New ventures and mostly young companies.
  2. Giants in technology, e-commerce and telephony, such as Amazon, Samsung, Alibaba.

Since Nicaragua is a country where financing is difficult and complicated for small, micro, and medium enterprises, and Fintech is an important trend in Latin America that aims to serve segments not yet covered by the financial system, they could be an ally for this sector of the economy that contributes so much to the country’s economic development.

However, here is the big question, what should Nicaragua do to use Fintech as a great ally that leads to the eradication of financial exclusion and gives a great digital leap that allows innovative solutions to trade?

In conclusion, traditional financial institutions need to come to the market with better products and services, more personalized and distributed through digital channels, especially mobile, as is the case of Online Banking.

The State should collaborate with the promotion of the modernization of banks and other financial institutions, with appropriate regulations to facilitate their operation and protect the interests of users and preserve the stability of the financial system. In other words, it is necessary to look for new banking models to attract, through Fintech, all those people who have a mobile connection, but do not yet have a bank account.

Valeska Fonseca Torrez
García & Bodán