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Fintech Credit and Informal Workers, Argentine Evidence

Digital lending platforms reconfigure access to liquidity in informal labor markets by replacing conventional collateral with alternative data assessment. In Argentina, these mechanisms frequently superimpose unsecured debt obligations onto vulnerable households rather than fully integrating unbanked populations into resilient financial structures. Sustainable inclusion requires harmonizing algorithmic credit scoring with comprehensive consumer protections and socio-economic support.

Objetivo

Assess how digital credit mechanisms influence debt dynamics and financial integration among informal workers in Argentina.

Metodología

Desk-based synthesis of central bank publications, institutional empirical evaluations, and socio-economic reports.

Novedad científica

Examines the convergence of algorithmic credit scoring and informal labor precarity within volatile Argentine credit tiers.

Vista previa del documento

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Scientific Article

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Fintech Credit and Informal Workers, Argentine Evidence

Author:

Group

First M. Last

Advisor:

Dr. First Last

City, 2026

Contents

Abstract
Introduction
Theoretical Dimensions of Digital Credit and Labor Informality
Algorithmic Underwriting and Machine Learning Risk Scoring
Structural Dynamics of Fintech Expansion in Argentina
Household Debt Trajectories and Everyday Financial Practices
Regulatory Safeguards and Financial Inclusion Policies
Discusión: Financial Inclusion versus Debt Proliferation
Referencias
Conclusion
Bibliography

Introduction

Digital financial platforms have reconfigured access to liquidity for marginalized and informal labor segments across emerging markets [1]. In contexts characterized by high labor informality, non-bank digital credit mechanisms offer automated lending channels that bypass traditional collateral requirements, theoretically fostering greater financial inclusion [1, 2].

Persistent gaps in digital capability combined with alternative risk scoring frequently alter borrower dynamics in volatile economic settings [1, 5]. In Argentina, structural instability and informal income streams interact with non-traditional credit channels, creating complex debt relations that challenge the conventional narrative of unencumbered financial empowerment [2, 6].

Evaluating the intersection of digital lending architectures and informal labor realities clarifies the divide between meaningful financial integration and debt-driven dependency [2, 5]. Through a structured analysis of institutional evidence and secondary literature, this article examines the structural factors governing fintech credit adoption and sustainability in the Argentine economy [1, 2].

Discusión: Financial Inclusion versus Debt Proliferation

The rapid expansion of fintech lending across Argentina illustrates the complex tension between expanding financial democratisation and accelerating household precarity among informal workers. Although digital platforms reduce entry barriers by deploying non-traditional data to assess risk among unbanked segments (Financial Technologies for the Inclusion of Informal Workers, 2026), this mode of liquidity provision does not inherently translate into long-term financial stability. As demonstrated in recent analyses of Argentine domestic financial practices, digital credit instruments often transform access into structured indebtedness, altering how vulnerable households navigate daily liquidity shortfalls (From Financial Inclusion to Indebtedness, 2025). Rather than building asset resilience or facilitating upward economic mobility, high-frequency digital borrowing frequently compels informal laborers to manage compounding repayment cycles within volatile macroeconomic conditions. Consequently, the broader institutional promotion of fintech as a primary vehicle for national financial inclusion (The Promotion of Financial Inclusion in Argentina Through Fintech, 2021) requires critical re-evaluation. Without robust regulatory guardrails and complementary social safety nets, algorithmic credit mechanisms risk reinforcing the structural vulnerabilities of informal employment, turning short-term access to digital cash into enduring debt burdens for unprotected workers.

References

  1. Financial technologies for the inclusion of informal workers: Solutions, barriers, and opportunities in the FinTech ecosystem
    Ada Gallegos, Luisa Adriana Rodríguez Zavala, Alejandro Valencia-Arias et al.
    Enlace DOI
  2. From financial inclusion to indebtedness: How FinTech transforms credit access and household financial practices in Buenos Aires, Argentina
    Kubra M. Altaytas
    Enlace DOI
  3. FinTech in Financial Inclusion: Machine Learning Applications in Assessing Credit Risk
    Majid Bazarbash
    Enlace DOI
  4. Fintech and financial inclusion of Moroccan women working in the informal sector: An empirical analysis based on the Technology Acceptance Theory
    Amina Ait Hbibi, Samir Makhrout
  5. FinTech in Financial Inclusion: Machine Learning Applications in Assessing Credit Risk
    Majid Bazarbash
  6. The Promotion of Financial Inclusion in Argentina Through Fintech
    F. Griffin Reichert

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