Peru’s National Policy on Financial Inclusion and Its Alignment with Sustainable Development Goal I

Abstract

This article analyzes the implementation of the National Financial Inclusion Strategy (NFIS) and its alignment with Sustainable Development Goal (SDG) I: Eradicate poverty. Despite the progress achieved, structural gaps persist and substantially limit the NFIS’s contribution to poverty reduction, especially among rural, indigenous, extreme poverty, and other vulnerable groups. The article employs a mixed methods approach combining qualitative and quantitative techniques. On the qualitative side, a hermeneutic documentary analysis of the NFIS and related regulations was carried out, with a critical textual interpretation supported by specialized software. Quantitatively, descriptive statistical techniques were applied to analyze official financial inclusion indicators—methodological integration was achieved through analytical triangulation under a concurrent mixed methods approach. The progress of initiatives under the NFIS was evaluated, identifying limitations such as the digital divide in rural areas, limited financing for Micro and Small Enterprises, gaps in financial education, and growing exposure to digital fraud. Although the NFIS promotes greater access to financial services, it does not explicitly focus on the poorest and most excluded populations. Therefore, it is recommended that the objectives and indicators of the NFIS be reformulated to focus on universal access and effective use of financial services by the population in extreme poverty and chronic exclusion. In addition, a strategic articulation with social protection policies is necessary, as well as promoting culturally relevant microfinance and inclusive finance models, strengthening consumer protection, and consolidating public–private alliances in high-poverty areas. Finally, strong monitoring and accountability are also key.

1. Introduction

Financial inclusion has become a priority issue in the development Agenda of many countries. In the case of Peru, the implementation of the National Financial Inclusion Strategy (NFIS) seeks to promote access and responsible use of comprehensive financial services that are reliable, efficient, innovative, and appropriate to the needs of different segments of the population [1]. This research is relevant because it assesses the progress and challenges in the implementation of the NFIS, as well as its alignment with Sustainable Development Goal (SDG) I: Eradicate poverty of the 2030 Agenda. This will provide a better understanding of the constraints and opportunities for strengthening financial inclusion as a tool for sustainable development, which is of utmost importance, both practically and scientifically. Although significant progress has been made, there are still gaps in the access and use of financial services, especially in rural areas and vulnerable populations.

In this context, the purpose of this article is to analyze the implementation of Peru’s NFIS and its alignment with Sustainable Development Goal (SDG) I: End Poverty of the 2030 Agenda. Specifically, it seeks to evaluate the progress of the initiatives and measures adopted by the institutions in charge of implementing the National Financial Inclusion Strategy, identify limitations and challenges, as well as propose recommendations to strengthen financial inclusion as a tool for reducing poverty and inequality.

Although financial inclusion is not a sufficient condition to lift people out of poverty, greater access to and use of financial services allows households and entrepreneurs to better manage their resources, access credit, save, and protect themselves against economic shocks, which are key elements to improve the well-being and resilience of the most vulnerable [2,3].

In this sense, Peru’s NFIS establishes guidelines and concrete actions to promote access and responsible use of financial services, especially in underserved populations and those with higher poverty rates. However, despite progress, financial inclusion in the country remains limited, which represents a challenge for the fulfillment of the SDGs. Furthermore, significant gaps persist between rural and urban areas. This situation highlights the novelty and relevance implementation of NFIS and its alignment with target 1.4 of SDG I, reducing poverty.

However, despite the progress made, financial inclusion in the country is still limited. According to the Superintendence of Banking, Insurance and Private Pension Funds (SBS) [4], 38% of the adult population does not have a savings account, and only 15% have used some digital financial service. Likewise, significant gaps persist between rural and urban areas. This situation highlights the need to evaluate the implementation of the NFIS and its alignment with the SDG I target of reducing poverty. In this way, it seeks to better understand the challenges, limitations, and opportunities to strengthen financial inclusion as a tool for sustainable development.

Thus, the overall purpose of this article is to analyze the implementation of Peru’s National Financial Inclusion Strategy and the Sustainable Development Goal I. Specifically, this article seeks to perform the following:

• Evaluate the progress of initiatives implemented under the NFIS to promote financial inclusion among vulnerable populations.
• Identify gaps, limitations, and challenges in the access and use of formal financial services.
• Analyze whether the NFIS is aligned with target 1.4 of SDG I and propose concrete actions to ensure financial inclusion of the poorest.
• Propose policy recommendations to strengthen the NFIS and its alignment with the 2030 Agenda.

The scope of the article covers the analysis of the National Financial Inclusion Strategy and its implementation from 2019 to date, considering available national statistical data on financial inclusion. It is also framed within Sustainable Development Goal I: Eradicate poverty. Thus, the proposed recommendations represent a novel and relevant contribution, as they provide specific guidelines on financial inclusion in Peru and its challenges. In addition, they offer concrete guidelines to strengthen the access to and use and quality of financial services, especially for the most vulnerable and underserved segments of the population. This will contribute significantly to the fulfillment of the Sustainable Development Goals related to the reduction of poverty and inequality.

In this way, based on the conclusions of the study, concrete public policy recommendations are formulated to strengthen financial inclusion in the country as a tool to reduce poverty and inequality, in line with the SDGs. The recommendations are aimed at various actors in the financial ecosystem and focus on improving access, use, and quality of financial services for underserved segments.

The relationship between financial inclusion and poverty reduction has been widely studied. In this regard, Orazi et al. [5] analyze financial inclusion in Latin America from a demand-side perspective, highlighting its potential benefits, such as the reduction of informality, the promotion of formal savings, productive credit, and inclusive economic growth. The authors mentioned above use microdata from the Global Findex to understand the socioeconomic determinants of the ownership and use of formal financial instruments, as well as the reasons for not having a bank account.

In the area of banking finance and stability, Zheng et al. [6] investigate the impact of monetary policy on the risk-taking behavior of banks in Bangladesh. The researchers find a nonlinear U-shaped relationship between monetary policy and bank credit risk. In addition, they examine the role of Basel II and find that its implementation influenced banks to take higher risks prior to its adoption. On the other hand, Li et al. [7] explore the impact of digital finance on urban innovation in China, concluding that digital finance can effectively promote urban innovation, albeit with significant differences in several dimensions. The commercial attractiveness of cities and the provision of traditional finance moderate this effect.

In the Peruvian context, Omar and Inaba [1] highlight the implementation of the National Financial Inclusion Strategy (NFIS) to promote access and responsible use of comprehensive financial services, aligned with Sustainable Development Goal (SDG) I: Eradicate poverty. Despite the progress achieved, gaps persist in the access and use of financial services, especially in rural areas and vulnerable populations [4]. Along these lines, Koomson and Danquah [2], as well as Dunvendack and Mader [3], highlight that although financial inclusion is not a sufficient condition for escaping poverty, greater access and use of financial services allows households and entrepreneurs to better manage their resources, access credit, save, and protect themselves against economic shocks, key elements for improving the well-being and resilience of the most vulnerable.

This review shows that, although there is a consensus on the potential of financial inclusion as a tool for sustainable development, there are still important challenges related to the effective implementation of the respective public policies and their alignment with the 2030 Agenda, especially in developing countries. In the Peruvian case, there is evidence of progress but also limitations and gaps that need to be addressed to maximize the NFIS’s contribution to poverty and inequality reduction goals. This highlights the relevance and pertinence of this research.

2. Theoretical Framework

Financial inclusion

The conceptualization of financial inclusion has become a core element in both the academic and public policy arenas in recent decades. The notion of financial inclusion can be understood, in holistic terms, as the availability, accessibility, and continuous use of a wide range of quality financial products and services by individuals and businesses that have traditionally faced access restrictions under conditions of affordability, convenience, dignity, and sustainability [8].

Specifically, financial inclusion incorporates four essential dimensions: (a) formal accessibility to diverse financial services, including credit, savings, insurance, means of payment, and risk management; (b) regular and continuous use of such services, considering transaction frequency and volume of resources involved; (c) quality reflected in product flexibility, continuity of services, fair and dignified treatment of users; and (d) material wellbeing, i.e., that their effective use provides security, facilitates economic and productive activities and allows the use of opportunities for income generation and improvement in quality of life [9].

In a broad and comprehensive sense, the four dimensions are as follows: First, formal accessibility to a wide range of financial services, including various means of payment, savings, credit, insurance, pensions, and risk management tools such as financial derivatives [10]. Second, the active, informed, and long-term use of such services, considering the regularity of transactions and the amounts of resources channeled in this way as a proportion of GDP per capita [11].

Third, the quality of services is reflected in their flexibility to meet heterogeneous needs; their reliability and operational continuity; fair, dignified, and careful treatment of clients; as well as the incorporation of financial education and transparency of information in contracts [12]. Fourth, the material well-being derived from the effective use of these services to generate income, employment, and productive investment, facilitate savings and investment in health and education, smooth consumption in the face of temporary economic shocks, as well as improve indicators of subjective well-being and increase the economic capabilities of excluded users [13].

Although there are multiple relevant financial services, the literature has focused mainly on bank account ownership as a starting point, given that these constitute the gateway to the formal financial system and are the vehicle from which one can gradually move towards the use of other more complex financial services [14].

Financial inclusion and poverty reduction: empirical evidence

Financial inclusion, defined as the access and use of formal financial services by individuals and firms, has emerged in recent years as a policy priority on the global development Agenda. There is a growing consensus among academics and policymakers that increasing financial inclusion can have significant effects on economic welfare and poverty reduction [15].

A significant number of recent empirical studies, mainly based on individual-level data, have found evidence that access to financial services such as savings accounts, credit, digital payments, and insurance is associated with various positive socioeconomic outcomes. For example, the use of bank accounts has been found to facilitate savings and investment in human and physical capital [16]. Access to credit also enables poor households to make productive investments in microenterprises, education, health, and assets [17]. Digital payment services reduce transaction costs and increase economic efficiency [18]. Finally, risk management products such as microinsurance allow vulnerable households to better cope with adverse shocks.

At the aggregate level, studies that exploit variations in financial inclusion policies also find significant effects on different socioeconomic variables. For example, Burges and Pande [19] report that the expansion of rural bank branches in India between 1977 and 1990 reduced poverty and increased per capita consumption. In Brazil, it is estimated that almost 8 million people escaped extreme poverty thanks to digital government transfers made through bank accounts [20].

Although most empirical studies confirm a positive association between financial inclusion and poverty reduction, some have found null or even negative effects in specific contexts [1]. This reinforces the need to consider factors such as the particular characteristics of users, as well as the quality of financial market products and regulation, to achieve effective policy impacts or outcomes. In summary, recent empirical evidence is generally consistent with the idea that facilitating the access and responsible use of financial services by low-income populations has the potential to accelerate progress toward poverty reduction and sustainable development objectives.

Financial Inclusion in Latin America

Financial inclusion has become a priority issue in the development Agendas of Latin American countries in the last decade. Financial inclusion is defined as the access and use of quality financial services by all segments of the population under appropriate regulation that guarantees consumer protection schemes and promotes financial education [21].

According to data from the Inter-American Development Bank, the region has experienced significant progress increasing access to formal financial services from 51% in 2015 to 71%. However, a large percentage of adults in the region remain excluded from the formal financial system. This exclusion mainly affects women, youth, rural, indigenous, and Afro-descendant populations, as well as small and micro-businesses.

Latin American governments have deployed a wide range of policies and initiatives to promote financial inclusion by addressing supply and demand barriers. On the supply side, licenses have been granted to new fintech players to expand financial service channels through innovative, lower-cost digital solutions. Likewise, regulatory frameworks have been adapted to facilitate the deployment of non-bank correspondents, making it possible to extend financial infrastructure to remote and economically underserved areas [22].

On the demand side, a growing implementation of conditional cash transfers linked to formal financial services has made it possible to bring banking services to millions of vulnerable people. In addition, consumer protection frameworks and financial education initiatives have been strengthened to increase the capabilities and confidence of users unfamiliar with financial products [23].

Despite progress, financial inclusion in Latin America faces important challenges in terms of coverage in rural areas and in deepening usage by already banked individuals. It is also necessary to adequately regulate new fintech providers and guarantee the protection of their users. Finally, it is necessary to coordinate comprehensive intersectoral policies and build public–private partnerships to design and implement sustainable financial inclusion solutions in line with the 2030 Sustainable Development Goals [24].

3. Materials and Methods

This study employs a mixed methods approach combining qualitative and quantitative techniques. On the qualitative front, a hermeneutic documentary analysis of the NFIS, as well as its implementation plan, related regulations, and previous studies on financial inclusion, was carried out in-depth, applying critical textual interpretation techniques. This documentary analysis used, as primary sources, the text of the National Financial Inclusion Strategy, its implementation plan, related regulations, and previous studies on financial inclusion in Peru. This allowed the deconstruction of the design, scope, consistency, and progress of the initiatives implemented.

To carry out the qualitative analysis, four software programs specialized in this type of analysis were used. First, Atlas.ti 23 and Huamata V1.0 were used to code and systematize official documents related to the National Financial Inclusion Strategy (NFIS) through AI Coding Beta. On the other hand, the Scispace V1.0 application was used to search for academic articles related to the topic of this research. This application was linked to Zotero 6.0.3719 for the systematization of the bibliography in an orderly and practical way. Finally, regarding spelling and writing, the Windows 11 application Copilot Pro was used in order to avoid grammatical errors and to take care of the writing style. Thus, the writing of the text and the generation of ideas were carried out entirely by the authors.

In the quantitative area, descriptive statistical techniques were applied to analyze the official indicators of the National Financial Inclusion Strategy. For this purpose, official reports from the Superintendence of Banking, Insurance, and Private Pension Funds (SBS), the Ministry of Economy and Finance, and international organizations were reviewed since they are the actors involved in the fulfillment of the NFIS. Thus, the implementation follow-up table with indicators was constructed, which is presented in the “Results” section of this research. The table in question includes four variables pre-established in the NFIS: access to financial services, use of financial services, coverage and infrastructure, and insurance performance and claims.

Thus, the indicators used are as follows: percentage of adult population with bank account, percentage of adult population with credit, percentage of new debtors of Micro and Small enterprises (MSEs), percentage of districts with presence of financial institutions, percentage of districts with presence of private financial institutions, average number of transactions per user of social programs, percentage of financial consumer claims over total transactions, average number of transactions per user of social programs, percentage of financial consumer claims over total transactions, percentage of population centers with Internet access, percentage of local governments promoting financial inclusion, percentage of insurance consumer claims over total policies, and percentage of claims and claims over total insurance claims. This table will include a time series from the inception of the policy in 2019 to the present, disaggregating data by geographic areas, socioeconomic levels, gender, age groups, and other relevant criteria.

Methodological integration will be achieved through analytical triangulation under a concurrent mixed methods approach. Qualitative and quantitative findings will be triangulated by applying meta-inference techniques to integrate hermeneutic interpretations with the results of the statistical-descriptive analysis presented in the implementation monitoring table. This will allow for a holistic and in-depth understanding of the NFIS implementation and its alignment with SDG I.

The methodology, combining qualitative and quantitative approaches through the use of specialized applications in documentary analysis, ensured a technically sophisticated analysis of the NFIS. The application of hermeneutic and multivariate statistical methods, together with the construction of the implementation monitoring table and analytical triangulation, yielded a solid and in-depth evaluation of the implementation of this public policy and its contribution to poverty reduction. This laid the groundwork for proposing technically grounded recommendations to strengthen the alignment of the NFIS with the 2030 Agenda and the Sustainable Development Goals.

In addition, to ensure the rigor and validity of the results, a communicative validation process was carried out. Preliminary results were presented to key stakeholder groups, including representatives from public institutions, the private sector, academia, and civil society. This iterative dialogue allowed for the refinement of the findings and the incorporation of diverse perspectives, enhancing the overall robustness and credibility of the study. The mixed methods design, combining qualitative depth with quantitative breadth, provided a comprehensive and nuanced understanding of the NFIS implementation process. The hermeneutic analysis sheds light on the conceptual underpinnings, assumptions, and discourses of the policy, while ethnographic interviews will capture the lived experiences, challenges, and meanings attributed to various actors. At the same time, the quantitative component provided a macro-view of trends, patterns, and relationships between financial inclusion indicators and socioeconomic variables over time.

This synergistic integration of methods not only allowed for a rigorous assessment of the progress of the NFIS and its alignment with SDG I but also generated information on the complex socio-cultural, economic, and institutional dynamics that shape financial inclusion in Peru. Ultimately, the study aims to contribute to the broader discourse on leveraging financial inclusion as a catalyst for sustainable development and poverty reduction, informing evidence-based policymaking and fostering inclusive economic growth.

4. Results

Background and initial diagnosis

Financial inclusion is defined as the access and use of quality formal financial services by all segments of the population. Greater financial inclusion brings multiple economic and social benefits. At the individual level, it allows people to better manage their finances, invest in education and health, start or expand businesses, manage risks, and lift themselves out of poverty. At the aggregate level, a financially included population contributes to economic growth, competitiveness, and the reduction of poverty and inequality.

Disaggregating these indicators by sex, we observe growing gender gaps. Between 2011 and 2017, the gap in account holding widened from 6% to 17%, while in loans and savings, it increased from 4% to 6% and from 6% to 14%, respectively. Another worrying dimension is the limited use of digital means of payment. In 2017, only 34% of Peruvians made or received any digital payments, compared to 46% in the region.

Insurance and pension fund services show the biggest lags. According to recent surveys, only 18% of adults had some private insurance, while the combined coverage of public and private pension systems reached only 27% of the economically active population (EAP).

The statistics show that a large part of the Peruvian population, especially in rural and remote areas, does not participate, or does so insufficiently, in the formal financial system.

This financial exclusion limits the possibilities of economic development and the country’s welfare, constituting a public problem that requires priority attention through a comprehensive financial inclusion policy.

The National Financial Inclusion Strategy

The National Financial Inclusion Strategy in Peru seeks to improve the economic well-being of the population through the benefits generated by their participation in the formal financial system. This policy is framed within a context of sustained economic growth in the country over the last decade, driven by macroeconomic stability, favorable commodity prices, and public policies to encourage private investment.

However, financial inclusion in Peru is still insufficient, which limits the contribution of the financial system to economic growth, productivity, competitiveness, and the reduction of poverty and inequality. Among the factors that explain this lag are labor informality, poverty, preference for the use of cash, limited income, and productivity levels, and scarce information and financial education in vulnerable segments. In addition, it is necessary to take into account the lack of trust that people have in the financial system, mainly due to the lack of knowledge of the tools and services it offers. In view of this, the National Financial Inclusion Strategy seeks to promote access and responsible use of comprehensive financial services that are reliable, efficient, innovative, and appropriate to the needs of the population.

The policy sets out five priority objectives: (1) generate public confidence in the financial system, improving financial competencies and capabilities with culturally appropriate communication strategies; (2) have a sufficient supply of financial services, increasing geographic coverage and promoting innovative, simple, and safe channels and services; (3) mitigate frictions in the functioning of the market, reducing information costs, strengthening financial consumer protection and adapting regulation to innovation while preserving stability; (4) develop telecommunications infrastructure and digital platforms to expand financial services; and (5) strengthen institutional coordination between public and private entities and civil society (

Table 1. Objectives and monitoring indicators.

Main Objectives	Indicators	Expected Achievement
OP1: Generate greater confidence in the financial system among all segments of the population.	Percentage of the adult population with an account in the financial system.	Increase the participation of the adult population with an account in the financial system to 75%.
	Percentage of the adult population with any credit in the financial system with Normal or CPP (Customers with Potential Problems) rating.	Increase the share of the adult population with credit in the financial system with a low probability of default to 43%.
	Percentage of new MSEs’ borrowers in the last five years.	Increase the share of new MSEs’ borrowers over the last five years.
	Average number of transactions per user of social programs, above those required for the withdrawal of cash transfers.	Increase the number of transactions of the population using social programs in the financial system above those required for the withdrawal of cash transfers.
OP2: To have a sufficient supply of financial services adequate to the needs of the population.	Percentage of districts with financial system presence.	Increase financial system coverage to 100%.
	Percentage of districts with the presence of the private financial system.	To increase the coverage of the private financial system.
OP3: Mitigate frictions in market functioning.	Percentage of complaints filed by consumers in the financial system out of total transactions.	Reduce the incidence of complaints filed by consumers of the financial system.
	Percentage of complaints and/or denunciations received out of the total number of complaints in the financial system.	Reduce the incidence of complaints and/or claims received by companies in the financial system admitted through administrative channels.
	Percentage of claims filed by consumers of the insurance system out of total policies.	Reduce the incidence of claims filed by consumers in the insurance system.
	Percentage of complaints and/or denunciations received out of the total number of complaints in the insurance system.	To reduce the incidence of complaints and/or claims received by insurance companies.
OP4: Develop telecommunications infrastructure and digital platforms to increase coverage and use of financial services.	Percentage of population centers with internet access service coverage.	Increase the number of population centers with internet service coverage to 52%.
OP5: Strengthen mechanisms for the articulation of institutional efforts	Percentage of local governments that implement concrete actions, activities, or agreements to promote financial inclusion.	Increase the participation of local governments that implement concrete actions, activities, or agreements to promote financial inclusion.

Source: Supreme Decree No. 255-2019-EF [25].

).

The policy emphasizes the need for coordinated efforts among the various stakeholders to address the multiple dimensions that affect financial inclusion. It also proposes improvements in demand through financial education, in the supply of financial services to make them more adequate and accessible, in the efficient functioning of the market, and in the development of infrastructure that allows reaching a larger population with lower transaction costs.

An interesting aspect is the comprehensive vision of the policy, which, while emphasizing the stability of the financial system, also aims at social objectives such as the reduction of poverty and inequality. In this way, greater financial inclusion is sought as a means to improve the socioeconomic conditions of the most vulnerable sectors.

Current status of the implementation of the National Financial Inclusion Strategy

The Peruvian National Financial Inclusion Strategy, instituted in 2019, pursues the purpose of improving the economic prosperity of the population through the benefits of joining the formal financial system. This policy is implemented through a Multisectoral Strategic Plan that stipulates 30 measures with short-, medium-, and long-range objectives relating to 5 main priorities: to create confidence in the financial system, to have an appropriate range of financial services, to mitigate frictions in the functioning of the market, to develop digital infrastructure to increase the coverage and use of financial services, and to consolidate institutional articulation.

According to the progress report of the Multisectoral Strategic Plan during the first half of 2023, the Ministry of Education and other government agencies carried out several financial education activities aimed at teachers, young people, adults, and vulnerable groups, with the priority of building trust. Likewise, financial education programs were approved by Banco de la Nación and the Peruvian Capital Markets Superintendency.

Regarding the objective of improving the supply of financial services, Banco de la Nación ordered the creation of twelve million ID accounts by 2023, renewed the Págalo.pe portal, and plans to increase the number of ATMs and correspondents. In addition, nearly 30 thousand small farmers received compensation through the Catastrophic Agricultural Insurance 2022–2023. Also noteworthy is the implementation of interoperability between the Yape and Plin (digital wallets) by the Central Bank, a measure that is expected to greatly increase transactions between both platforms. In the context of the second phase of interoperability, the Central Bank extended the deadline for obligated entities to ensure the proper operation of the digital payment system.

Regarding the mitigation of frictions in the market, the Specialized Market Conduct Board and the Free Competition Committee continued their sessions of articulation and presentation of progress on issues such as digital fraud, insurance commercialization, and competitiveness in the fintech sector. Regarding digital infrastructure, close to 60 thousand people received attention in 104 Digital Access Centers of the Todos Conectados plan in 6 regions of the country so that they could access the Internet to carry out procedures, do homework, and stay informed.

Finally, concerning institutional strengthening, the Financial Inclusion Advisory Committees approved work plans on the generation of financial inclusion data segregated by gender and the determination of levels of access to financial services in women and rural areas. In summary, the progress made in the implementation of the National Financial Inclusion Strategy shows positive results in its five central priorities, which augurs that progress will continue to be made toward greater comprehensive financial inclusion. Inter-institutional coordination and specific measures aimed at vulnerable groups are key in this process.

Table 2. Implementation follow-up matrix.

Indicators	Advance %
	2019	2020	2021	2022	2023	Situation
Percentage of adult population with any account in the financial system.	41	42	50	54	56	Ascendant
Percentage of the adult population with a loan in the financial system with a Normal or CPP (Customers with Potential Problems) rating.	29	25	26	27	29	Ascendant
Percentage of new MSEs debtors in the last five years.	50	42.6	40	37	36	Descendant
Average number of transactions per user of social programs over those required for the withdrawal of monetary transfers.	6.9	8	11.4	15.9	16.5	Ascendant
Percentage of districts with the presence of the financial system.	85	85	88	91	92	Ascendant
Percentage of districts with the presence of the private financial system.	51	52	58	63	64	Ascendant
Percentage of complaints filed by consumers of the financial system out of total transactions.	7.4	10.2	8	6.2	6	Descendant
Percentage of complaints and/or denunciations received out of the total number of complaints in the financial system.	17.3	16.7	18.7	19.3	20	Descendant
Percentage of complaints filed by consumers in the insurance system out of a total number of policies.	15.4	12.7	8.9	6.4	5.9	Descendant
Percentage of claims and/or complaints received out of the total number of claims in the insurance system.	74.9	86	157.8	194.7	221.3	Descendant
Percentage of populated centers with Internet access service coverage.	36	35	30	49	51	Ascendant
Percentage of local governments implementing concrete actions, activities, or agreements to promote financial inclusion.	No Registra	No Registra	48.6	43.6	40	Ascendant

Source: National Financial Inclusion Strategy Monitoring Report for 2022. Monitoring Report [26] and Report on Peru’s National Financial Inclusion Strategy [27,28,29,30].

shows the progression of the twelve indicators related to financial and digital inclusion in Peru for the five years from 2019 to 2023. It is observed that the percentage indicators concerning the banked adult population, adult population with current loans in normal status, presence of formal financial entities in districts of the country, and internet service coverage show an increasing trend in the analyzed period. This is evidence of gradual but sustained progress in the access and use of financial services by segments previously excluded from the system, as well as in the expansion of financial and telecommunications infrastructure to previously underserved areas.

On the other hand, the indicators associated with the percentage of new Micro and Small Enterprises (MSEs) debtors over the five years, the proportion of financial consumer and insured claims concerning the total number of transactions carried out, show a downward trend over the same period. These metrics summarize the gradual decrease in the dynamism of financing to Micro and Small Enterprises, as well as in complaints due to possible disputes or dissatisfaction of financial service users concerning transaction volumes.

Thus, in addition to the antagonistic trends described above, there has been an upturn in the percentage of local governments executing actions or signing agreements to support financial inclusion efforts, which shows a greater commitment by sub-national authorities to this important Agenda. In summary, the indicators reviewed show important advances in multiple aspects of financial inclusion; at the same time, they reveal areas for improvement in which interventions and public–private policy coordination must be redoubled to consolidate achievements and mitigate gaps that persist in different areas.

Limitations and pending challenges

Despite the advances in financial inclusion evidenced in recent years, the National Policy still faces important limitations that constitute challenges to be addressed. The first critical aspect is the disparity in the access and use of financial services between urban and rural areas. Although the geographic coverage of the financial system has expanded, as of 2023, only 64% of districts have a presence of private financial entities [31]. This restricts service options for rural populations and hinders their financial inclusion. Linked to this, the digital divide between urban and rural areas facilitates the potential for digital financial inclusion.

By 2023, Internet coverage in populated centers will reach only 51%, meaning that large segments of the population will continue to be excluded from the electronic financial system. Overcoming the rural digital divide is key to democratizing access to digital financial services. Another important restriction derives from the adverse macroeconomic context, the economic slowdown, and the contraction of credit due to the pandemic, which has slowed down the dynamism of financing for Small- and Medium-sized Enterprises. Between 2019 and 2023, the proportion of new Small- and Medium-sized Enterprise (SME) borrowers decreased from 50% to 36%, showing a setback in productive inclusion [32]. Reversing this trend will require reactivating the economy and improving the credit environment for MSEs.

Likewise, despite efforts in financial education, there are still gaps in financial knowledge and capabilities in large segments of the population, especially in rural areas, which limit the adequate use of financial services and expose them to the risk of over-indebtedness. Deepening educational initiatives with cultural relevance is key to financially empowering these populations. Finally, the growing incidence of fraud and digital financial crime highlights gaps in consumer protection and undermines user confidence.

Between 2019 and 2023, the number of claims and complaints admitted to insurance companies quadrupled. Strengthening financial cybersecurity and the legal protection of digital users are unavoidable challenges to protect their rights and interests. In conclusion, consolidating progress and promoting sustainable and comprehensive financial inclusion in the country requires redoubling efforts to close access gaps between rural and urban areas, narrowing the rural digital divide, boosting productive financing for MSEs, strengthening inclusive financial education, and guaranteeing safe environments in the face of the growing risk of electronic fraud. This will require greater public–private investment and differentiated policies with territorial and cultural relevance.

5. Discussion

The juxtaposition with analogous academic inquiries reveals a harmonious consonance between the findings elucidated in this research concerning the nexus between financial inclusion and poverty alleviation and a multiplicity of preceding research. A World Bank [33,34] paper evidenced that access to formal financial services can engender an increase of up to 30% in income levels of impoverished households due to the facilitation of savings, loans for productive investment, and risk management mechanisms. In turn, Park and Mercado’s [35] cross-continental analysis demonstrated a strong inverse correlation between financial inclusion and poverty rates, coupled with a decrease in inequality levels.

However, other academic contributions, such as that of Jiang and Liu [36], warn that financial inclusion is insufficient, as it requires complementary interventions such as financial education initiatives, cultivating productive capacities, and fostering an enabling environment for microenterprises. These findings underscore the need for a multidimensional approach, a position that this research also proposes. Several empirical studies have corroborated the pivotal role of financial inclusion in poverty reduction at both the individual and community levels. A randomized experiment in Malawi found that access to formal savings mechanisms led to a 16% increase in spending and investment in education, food, and entrepreneurial ventures by household units [37].

In India, a rural bank branch expansion program catalyzed women’s economic empowerment, increasing their labor participation and autonomy in household decision-making [38]. In Mexico, a credit and savings program through rural cooperatives precipitated a 16–28% increase in total household income [39]. In Nepal, access to digital financial services spurred self-employment and income growth among women-led microenterprises [40].

These small-scale examples show the concrete channels through which financial inclusion can alleviate the multidimensional deprivations that afflict the population mired in poverty. Consequently, these empirical findings support holistic approaches that strengthen the access and responsible use of a range of affordable financial services tailored to the needs of these segments. A multiplicity of additional methodical inquiries support these assertions, underscoring the critical importance of ensuring a strong financial infrastructure, including one that is a cornerstone of national and international strategies aimed at eradicating extreme poverty and building equitable and sustainable economic development.

This empirical and theoretical evidence underscores that, while financial inclusion is not a panacea, it is an essential enabler to catalyze upward socioeconomic mobility for the most vulnerable and marginalized sectors. By enabling access to crucial services such as secure savings, affordable credit, insurance, and low-cost fund transfers, key mechanisms are enabled to increase the resilience of low-income households to adverse shocks, smooth consumption patterns, foster entrepreneurship and productive investment, and ultimately break intergenerational cycles of multidimensional deprivation [41].

Therefore, the regulatory and programmatic guidelines framed in Peru’s National Financial Inclusion Strategy must be strategically reoriented to harmonize with the targets set in Sustainable Development Goal I to end poverty in all its forms. This demands a priority focus on the segments of the population in extreme poverty and most acute financial exclusion, adopting differential measures based on a comprehensive characterization of their specific needs, barriers, and vulnerabilities [42]. Only through this precise targeting and the design of comprehensive interventions that address the multiple intertwined factors that perpetuate cycles of chronic deprivation will it be possible to enhance the transformative impact of financial inclusion in line with the imperatives of the 2030 Agenda.

SDG I and Financial Inclusion Targets

The first Sustainable Development Goal (SDG) set forth by the United Nations in the 2030 Agenda seeks to end poverty in all its forms around the world. Within the roadmap to achieve this ambitious goal is the promotion of financial inclusion, particularly focused on low-income populations that have traditionally been excluded from the formal financial system. Financial inclusion implies the possibility of accessing and using useful and affordable financial services provided by formal institutions, such as bank accounts, electronic means of payment, microcredit, insurance, or savings, through the goals established to achieve these objectives (

Table 3. Sustainable Development Goal I targets.

Objective	Goals
The end of poverty	By 2030, eradicate extreme poverty for all people in the world, currently measured by an income per person of less than USD 1.25 per day.
	By 2030, reduce by at least half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions.
	Implement nationally appropriate social protection systems and measures for all and, by 2030, achieve comprehensive coverage of the poor and most vulnerable.
	By 2030, ensure that all men and women, particularly the poor and most vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other assets, inheritance, natural resources, new technologies, and economic services, including microfinance.
	By 2030, build the resilience of the poor and people in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social, and environmental disasters.
	Ensure significant mobilization of resources from various sources, including through enhanced development cooperation, to provide adequate and predictable means for developing countries, in particular, for the least developed countries, and to implement programs and policies to end poverty in all its dimensions.
	Create sound policy frameworks at the national, regional, and international levels based on gender-sensitive pro-poor development strategies to support accelerated investment in poverty eradication measures.

Source: The 2030 Agenda and the Sustainable Development Goals [43].

).

According to the World Bank, in 2017 around 1.7 billion adults in the world did not have access to this type of services, mainly located in regions such as Sub-Saharan Africa, South Asia, and Latin America. This unbanked population faces serious limitations in investing in health, education, and productive activities, becoming more vulnerable to economic shocks and with high chances of falling or staying in poverty. In contrast, several studies highlight that access to formal financial services has significant effects on reducing poverty and inequality, as well as on inclusive economic growth.

Thus, while partial progress has been made, accelerating quality financial inclusion remains critical to achieving SDG I targets. By 2021, despite rapid global technological progress, around 1.4 billion adults worldwide remain excluded from formal banking [44]. Complete inclusion would enable billions of people to participate fully in the economy and empower them. Among the most promising current initiatives along these lines are mobile money and digital banking solutions, public–private partnerships to reach remote areas, the design of appropriate financial products, and financial education approaches to promote responsible use of services.

However, despite efforts, structural challenges persist in terms of geographic coverage, gender gaps, quality of access, and affordability. In short, accelerating comprehensive financial inclusion is indispensable within the global strategy to eradicate poverty and leave no one behind, as stated in SDG I. The road ahead is still long and will require decisive public policies, considerable investment, and innovative business models with a social focus. Meeting the ambitious but indispensable targets of the 2030 Agenda will be impossible without an inclusive financial infrastructure that empowers the most vulnerable.

Contribution of the Peruvian Policy to Global Goals

Financial inclusion has gained relevance in the last fifteen years as a valuable strategy to promote inclusive economic development and poverty reduction at a global level. Facilitating the access and responsible use of financial services in underserved populations improves their resilience to shocks, smooths consumption, and boosts productive investment by lower-income households.

It is in this context that it is key to examine the alignment between the global poverty reduction Agenda of Sustainable Development Goal I and the expected achievements of the National Financial Inclusion Strategy (NFIS) in Peru. From the analysis in

Table 4. Relationship between SDG I targets and expected achievements of the NFIS.

Sustainable Development Goal I Targets	Expected Achievement of Peru’s National Financial Inclusion Strategy
Ensures that all men and women have access to economic services, including microfinance.	Increase the share of the adult population with an account in the financial system to 75%.
	Increase the share of the adult population with a loan in the financial system with a low probability of default to 43%.
	Increase the share of new MSE debtors in the last five years.
	Increase coverage of the financial system to 100%.
	Increase the coverage of the private financial system.
Implement social protection systems with comprehensive coverage of the poor and vulnerable.	Increase coverage of the private financial system. Increase the participation of the adult population with an account in the financial system to 75%.
	Increase the number of transactions of the population using social programs in the financial system over those required for the withdrawal of monetary transfers.
	Increase coverage of the financial system to 100%.
Creating sound policy frameworks to support investment in poverty eradication measures.	Increase the participation of local governments that implement concrete actions, activities, or agreements to promote financial inclusion.
No direct link	Reduces the incidence of complaints filed by consumers of the financial system.
	Reduce the incidence of complaints and/or claims received by companies in the financial system admitted through administrative channels.
	To reduce the incidence of complaints filed by consumers in the insurance system.
	To reduce the incidence of complaints and/or claims received by insurance system companies.
	Increase the number of populated centers with Internet service coverage to 52%.

Source: Own elaboration.

, it is clear that there are several points of convergence between the goals set by the United Nations and the specific objectives of the Peruvian policy. For example, target 1.4 of SDG I, which aims to guarantee access to financial services, converges with the expected achievements of greater financial inclusion of the adult population and greater district coverage of formal banking entities.

Likewise, the use of financial services by beneficiaries of social programs is aligned with target 1.3 to implement comprehensive social protection systems. Other SDG I targets referring to the creation of regulatory frameworks for social investment or the reduction of financial claims are not directly linked to the issue of financial inclusion, which responds instead to the need to facilitate access and responsible use of credit and other savings and investment instruments. Examining the 2019–2023 indicators, a positive advance in financial inclusion can be seen. The banked adult population increased from 41% to 56%, approaching the target of 75% by 2025; access to formal credit also improved.

However, the incorporation of new MSE debtors fell, and financial claims, although they decreased in relative terms, continue to show gaps in consumer protection. These results show that greater financial coverage alone does not guarantee substantial improvements in the welfare of the vulnerable population. It is necessary to articulate the NFIS with interventions in education, productive infrastructure, and families’ financial capabilities so that financial inclusion positively impacts consumption and investment levels in lower-income households.

In this sense, financial inclusion is a necessary but insufficient element to meet the objectives of SDG I fully. It must be part of a comprehensive strategy for inclusive economic development, with the coordinated participation of various sectors of the State at the national, regional, and local levels. Only in this way will this policy be able to contribute decisively to the multidimensional transformation of the living conditions of the poorest 40% of the population.

National policy adjustment needs

The Sustainable Development Goals set out a comprehensive Agenda for social, economic, and environmental progress with targets for 2030. SDG I aims to eradicate extreme poverty and substantially reduce the different dimensions of poverty at the global level. To this end, it sets out several interrelated targets [35]. Financial inclusion is presented in this Agenda as a key lever to boost economic development and poverty reduction, given its capacity to facilitate productive investments, build resilience, manage risks, and cope with adverse shocks in low-income households.

In this sense, Peru’s National Financial Inclusion Strategy needs to be examined in terms of its alignment with the goals and approaches of SDG I. Although the policy’s objectives include increasing the coverage of financial services and promoting their use among different segments of the population, it is not specifically designed to close exclusion gaps for the poorest. Groups living in extreme poverty, with unsatisfied basic needs or multidimensional poverty, present the greatest deficits in financial inclusion in Peru. However, the objectives and indicators of the current policy do not focus sufficiently on these populations, nor do they propose guarantees of access and equitable treatment within the formal financial system.

Nor is there evidence of proactive integration with social policy in terms of protection against vulnerabilities, promotion of economic capabilities, or facilitating access to public transfers that favor social mobility. Likewise, there is no emphasis on a territorial approach to prioritize districts that lag or are vulnerable to natural disasters. In this sense, a reorientation of the objectives, indicators, targets, and specific interventions of this policy is required to better align with the commitments of the Peruvian State under the 2030 Agenda and the national targets for reducing monetary poverty, multidimensional poverty, and social exclusion until 2030.

Among the necessary adjustments are the following: (1) focusing financial inclusion efforts on low-income populations with high exclusion from the system; (2) real universal access to financial services for these populations; (3) proactive complementarity with social protection and poverty reduction policies and programs; (4) emphasis on alternative models of microfinance and inclusive finance aimed at this segment; (5) prioritization of districts according to differentiated needs; and (6) monitoring of gaps in access and effective use by poor and vulnerable populations.

The implementation of these adjustments, within a public policy approach aimed at leaving no one behind, would make it possible to take advantage of the potential of financial inclusion to actively contribute to the achievement of Peru’s goals under SDG I in the coming years. This is a reorientation that cannot be postponed to build a more inclusive financial system committed to substantive equality in the exercise of economic rights.

Within the dynamics of public policy design in Peru in light of the 2030 Agenda, the alignment of the financial inclusion policy with the Sustainable Development Goal of Ending Poverty (SDG I) takes on vital significance to address the gaps in access to financial services still pending, particularly those affecting the most economically vulnerable population, exclusion and deep-rooted inequalities. The six dimensions of poverty on which this national policy was structured—food, health, water and sanitation, education, employment, and housing—provide a multidimensional vision of the challenges to be faced.

Within this framework, financial inclusion is a fundamental accelerator for removing structural barriers to the social and economic development of the poorest. According to official estimates, in Peru, the poorest 10% of the population accounts for more than 80% of financial exclusion. This situation produces imbalances in equal access to basic citizen rights. A comprehensive regulatory response from the paradigm of financing for co-responsible and sustainable development would allow taking advantage of the progressive contribution of financial services—savings, credit, insurance, means of payment, among others—for the real construction of capacities and opportunities among those Peruvians who have been historically neglected [45].

By addressing the basic diagnostic aspects, the financial inclusion policy should maximize synergies with national strategies in terms of social policies and the fight against poverty. To this end, it is essential to disaggregate the statistics of the high financial inclusion deficit according to previously established socio-demographic profiles and poverty levels—extreme poverty, total poverty, and multidimensional poverty, among other indicators—so that public intervention can be more precisely oriented towards the target populations of SDG I.

Likewise, an accurate assessment of the starting point for this convergence of policy efforts would make it possible to draw projections of expected financial coverage for these groups by 2030, as well as to estimate the remaining inclusion gaps that should be proactively addressed with differentiated measures, incentives, and regulations within the regulatory framework of the Peruvian financial system, which still shows ample margins to consolidate its orientation towards a human rights approach [46].

6. Conclusions and Recommendations

Although tangible progress has been made in expanding the access and use of formal financial services in Peru in recent years, significant structural gaps remain that limit the effective contribution of the National Financial Inclusion Strategy to substantially reduce poverty in all its dimensions, as stipulated by Sustainable Development Goal I (SDG I) as a global priority. Progress has concentrated primarily on middle-income segments and urban populations, while large rural sectors, indigenous communities, people living in extreme poverty, and other vulnerable populations lag, facing chronic financial exclusion.

Major pending challenges must be urgently addressed to consolidate comprehensive and inclusive financial inclusion nationwide. Key challenges include closing the digital divide in rural areas, boosting and facilitating financing for micro and small businesses, strengthening culturally and linguistically relevant financial education programs, and reinforcing the regulatory framework to ensure effective consumer protection against abusive practices, over-indebtedness, and increasing fraud and cybercrime risks.

While the National Financial Inclusion Strategy is partially aligned with SDG I by promoting greater access to financial services, there is evidence of a disconnect with the approaches, priorities, and mechanisms required to decisively impact the eradication of extreme poverty and multidimensional exclusion persisting among important Peruvian population segments.

Substantive adjustments are, thus, required in the policy’s design, approach, and implementation to explicitly focus its objectives, indicators, and actions on populations facing the highest poverty rates, lack of basic services, and exclusion from the formal financial system. Only through such a reorientation can the transformative potential of financial inclusion as a lever for economic empowerment and rights be leveraged for the poorest.

Key recommendations include reformulating the strategic objectives and management indicators to focus explicitly on universal, affordable, quality access and effective use of formal financial services by populations living in extreme poverty, multidimensional poverty, and chronic financial exclusion. Differentiated quantitative and qualitative financial inclusion goals should be set for 2030 for population segments and districts with the highest poverty rates, lack of basic services, and unmet needs, harmonized with Peru’s 2030 Agenda commitments.

It is essential to articulate the National Financial Inclusion Strategy strategically and integrally with social protection policies and programs, facilitating access to public transfers, economic capacity building, and financial empowerment of the poorest and most vulnerable households. Rural and urban microfinance models, inclusive finance, culturally and linguistically relevant financial education, and specialized financial products and services adapted to the needs, realities, and contexts of low-income populations should be promoted, facilitated, and prioritized.

Strengthening the regulatory framework and banking supervision mechanisms under a human rights and consumer protection approach is crucial, guaranteeing the effective defense of vulnerable users against potential abuses, over-indebtedness, digital fraud, and unfair practices. Complementarily, public–private alliances at national, regional, and local levels should be consolidated, actively involving municipal and provincial governments, to facilitate the expansion of diverse, accessible, quality, inclusive financial services in remote rural areas and high-poverty districts.

Finally, establishing robust, independent, and participatory monitoring, evaluation, and accountability mechanisms is imperative for periodic, systematic, and transparent tracking of progress in progressively closing financial inclusion gaps among the poorest and most vulnerable at national and territorial levels. In summary, for Peru’s National Financial Inclusion Strategy to effectively become a vector for eradicating poverty in all its forms as per SDG I, a comprehensive strategic reorientation is required to consolidate it as an instrument democratizing access to formal financial services and facilitating economic empowerment of historically excluded populations.