Ingreso Solidario: digital cash transfers via mobile wallets
Description
Unconditional cash transfer program created in 2020 during the COVID-19 pandemic for poor and vulnerable households not covered by other social programs. Its innovation was massive digital payment via mobile wallets (DaviPlata, Nequi, Movii) and simplified accounts, opening close to one million new accounts. It reached about 4 million households. It ended in December 2022, replaced by Renta Ciudadana.
Lessons learned
Financial inclusion via transfers is reversible if not accompanied by financial products for ongoing use (savings, low-interest credit); opening accounts does not guarantee sustainable inclusion, since a good share of beneficiaries withdrew the money in cash. It ended in Dec 2022 due to lack of budget and was replaced by Renta Ciudadana, which increased the amount but reduced coverage (~4M to ~3.3M households).