The COVID-19 emergency unleashed the adoption of social protection measures in practically all nations seeking to counteract its negative economic effects. In this case, the implementation of cash transfer programs has been a challenge to ensure that aid is delivered in a timely, safe, and efficient manner.
In Colombia, the Government created Ingreso solidario, a non-conditional transfer program targeting 3 million vulnerable households not covered by other social programs. The Ministry of Finance designed the payment platform, prioritizing digital financial inclusion as a means to guarantee that aid is delivered on time, complies with social distancing, and contributes to overcoming the environment of informality that is perpetuated when payments are made in cash.
Impact / Outcome Overall, during the first part of the program, between April and June 2020, 2.6 million households were reached. Almost 1.2 million of beneficiaries were financially included, 76% through digital wallets backed by accounts at financial institutions, and 24% by a face-to-face process. Almost 65% of these beneficiaries were women, which was something the Government intentionally included in the targeting process since women are most impacted by the economic effects of COVID-19.
The main achievement of the program has to do with switching from regular money transfers to digital financial inclusion and digital usage for first-time users of mobile-based accounts. Preliminary data shows an impressive trend: 45% of the beneficiaries did an additional cash-in after payments and 62% of the people used the money on their wallet without leaving their homes, whether to pay utility bills, recharge their phones, make transfers to family members, or make electronic purchases. All of this resulted in greater consumption capacity and an improvement in household well-being.
Funding sources Public/Private
Key Metrics Beneficiaries, specially women, of Ingreso solidario program
