Oxford Study Tackles Digital Banking Barriers in Medellín

Having a bank account on your phone doesn't mean much if you don't trust the company behind it or understand how it works.

That's the problem researchers from Oxford University, York University, and the Interledger Foundation are tackling in Medellín, Colombia. Their one-year study examines why access to digital wallets and instant payments hasn't translated into real financial participation for low-income families.

Colombia has seen millions of people gain access to digital financial services as the country shifts away from cash and traditional wire transfers. But many vulnerable households still sit on the sidelines, unable or unwilling to fully engage with these new tools.

The research team, led by Professor Carlos Vargas-Silva from Oxford's Centre on Migration, Policy and Society, will dig into the reasons why. They're examining how people judge the cost, risk, transparency and trustworthiness of financial products and the institutions offering them.

"Many people do not access financial products and services because they perceive them as confusing, expensive, or untrustworthy," Vargas-Silva explains. Others use services without fully understanding the terms, conditions or risks they're accepting.

Medellín was chosen because it combines a developed financial sector with persistent gaps in income, information access and economic opportunity. The city offers a window into how these inequalities play out in real financial decisions.

The Ripple Effect

This research could reshape how financial services are designed and delivered across Latin America and beyond. When people understand and trust the financial tools available to them, access transforms from a checkbox into genuine economic opportunity.

Briana Marbury, President and CEO of the Interledger Foundation, sees user experience as the key. "The way people experience financial products and services shapes their willingness to engage with them and determines whether access translates into genuine economic opportunity and agency," she says.

The Foundation has committed over $21 million across more than 300 projects in 45 countries since 2020, all focused on improving access to digital financial services. This study represents a deeper look at what happens after access is granted.

The research team plans a conference in Colombia and a workshop in Oxford throughout 2026, with final findings expected in early 2027. The results could help millions of people move from simply having financial services available to actually benefiting from them.