There is a group of non-developed economies that share a set of structural characteristics and have historically been overlooked by global financial players:
These countries sit in an "uncomfortable middle." They are not large enough to justify the upfront regulatory, operational, and compliance costs required by global banks, payment networks, or fintech scale players. At the same time, local incumbents face limited competitive pressure, which reduces incentives to innovate, lower prices, or expand access. The result is stagnant financial infrastructure and poor customer experience.
Countries such as Bolivia (12.6M), Paraguay (7.0M), Honduras (11.0M), Nicaragua (7.0M), and El Salvador (6.4M) fall into a population range that is economically meaningful but often overlooked by global financial players.
For large banks and fintechs, these markets are:
However, from an operator's perspective, these populations are large enough to support:
Low average income levels make traditional financial products appear unattractive on a per-user basis. Global providers optimize for high ARPU markets, while local institutions focus on risk minimization rather than access or innovation. This leads to a lack of basic financial services that are otherwise standard in developed markets, particularly around savings, cross-border payments, and access to hard currencies.
GDP per capita in these markets typically ranges between $2,000 and $8,500, significantly below developed economies.
Lower income levels create two structural effects: