Criminal factions and ICT-Mediated financial inclusion in Brazilian favelas: the role of context

ABSTRACT The city of Rio de Janeiro has the highest proportion of people living in favelas in Brazil and their residents have very restricted access to financial services, often needing to commute to other neighborhoods to make simple transactions. Therefore, this research examines a fintech startup called Banco Maré, created to improve financial inclusion in the largest complex of favelas of Rio de Janeiro - Complexo da Maré. A model for ICT-mediated financial inclusion based on the Capability Approach was applied to evaluate this initiative in two favelas dominated by distinct criminal factions in the complex. The results suggest that the financial inclusion depends on the nature of criminal factions dominating same. The work, therefore, indicates that contexts where an institutional order that favors greater agency, empowerment and participation of residents prevail, can strongly affect ICT-based financial inclusion initiatives in favelas dominated by lawless organizations.