The role of organizations in the popular and solidarity-based financial system in the financial inclusion and social development of vulnerable populations in Ecuador

Abstract

The study analyzed the role played by popular and solidarity-based financial system organizations in the financial inclusion and social development of vulnerable populations in Ecuador. It found that these institutions, mainly consisting of savings and credit cooperatives, mutual associations, and community credit unions, represented an accessible and equitable alternative to the traditional banking system. Through their participatory structure and solidarity-based approach, they promoted the democratization of credit, savings, and financial education in historically excluded sectors, such as rural communities, indigenous peoples, women entrepreneurs, and low-income microentrepreneurs. The analysis showed that, over the last decade, these organizations strengthened the local economy through productive and social financing programs. Their presence in rural areas allowed them to channel resources into agricultural, commercial, and entrepreneurial activities, contributing to job creation and improving the living conditions of beneficiary families. In addition, the policies implemented by the Superintendency of Popular and Solidarity Economy (SEPS) promoted regulation and transparency in the sector, consolidating its credibility within the national financial system. The popular and solidarity-based financial system in Ecuador played a decisive role in reducing financial exclusion, promoting sustainable development and social equity. Its community-based approach strengthened citizen participation and economic self-management, demonstrating that cooperation and solidarity could be an effective way to promote the inclusion and well-being of the country's most vulnerable populations