SMEs represent strategic growth opportunity in Latin America and the Caribbean

Small and medium-sized enterprises (SMEs) represent approximately 99% of businesses and generate over 60% of formal employment in Latin America and the Caribbean. A global study by Visa, titled ‘The Multiplier Effect: Visa 2026 Small Business Banking Report’, indicates that financial relationships with SMEs can generate an average return five times higher than consumer banking globally. In analyzed Latin American markets such as Brazil, Mexico, Colombia, and Chile, this multiplier can reach approximately eight times.

Despite this potential, many SMEs in the region still rely on personal banking products or consumer accounts not designed for business needs. The study highlights that credit cards account for roughly 44% of SME-associated banking income, and businesses using them tend to adopt twice as many financial products. As these companies grow, there is an increasing demand for credit, working capital, digital tools, and liquidity solutions.

In Chile, closing the productivity gap between SMEs and large corporations could potentially add up to 6% to the national GDP. However, regional challenges persist, such as rising operating costs and difficulties in digital transformation and customer acquisition.