Contagion-control measures in Latin America have led to private companies and citizens heightening their dependence on, and increasing their use of, internet-powered solutions and apps.

While many firms, including those in the financial services sector, have told staff to work from home, the bulk of people in the region simply cannot do this because of the nature of their work, which is often informal. 

State agencies, meanwhile, are also tightening their embrace on technology and instructing regulated entities to do the same.

Changes will likely be permanent and nudge some Latin American countries further along the digital transformation highway.

Among them is Chilean pensions watchdog SP, which has told AFC, the private company that manages the country’s unemployment insurance scheme, to beef up its digital muscles.

AFC, which has branches across the country, is required to offer all of its services via electronic channels.  

“The objective of these instructions is to reduce the flow of people at AFC branches, to benefit both citizens and the workers at the administrator, especially those who attend the public,” SP said in a statement. 

The main implication is that making a claim – the only procedure until now that required attendance at a physical office – can be done remotely. As part of the process, an applicant can use either a password issued by the national registry office or by the AFC itself following an identity-validation process.

In terms of benefit payments, 93% are made by bank transfer and AFC is required to ask those who still receive cash whether they want to switch to direct deposit.

Financial services watchdog CMF has also issued instructions to regulated entities regarding the use of remote channels for the likes of communicating with clients and for shareholder meetings.

On Thursday night, seven districts of Chilean capital Santiago – including business hub Las Condes – will go into lockdown for a week as part of efforts to slow the spread of the virus. People who want to leave their homes must apply for a temporary pass via a police website. The restrictions do not apply to the likes of health sector, financial institution, supermarket and utility sector workers. 

Meanwhile, across the Andes in Argentina, already under a full national lockdown, authorities at social security agency Anses are tasked with administering a massive aid program to support low-income workers in the informal sector. About 3.6mn families are expected to benefit. 

Authorities are promoting use of the Anses website and have a staggered registration system, but the agency will also implement alternative mechanisms, such as a postal application service, for people living in isolated areas or extremely vulnerable situations, local paper El Cronista reported.

Moves such as those in Chile and Argentina, along with the disruption to daily life that containment measures have caused for many, should spur interest in bank accounts that can be opened online with minimal friction and barriers. Among those that may benefit in the commercial banking segment are challenger bank Wilobank in Argentina and Santander in Chile, which offers a basic digital savings account that comes with a Mastercard debit card.

Read more @BNAmericas