Services
Chile's remarkable economic performance in the past decade has helped other areas of the economy grow significantly. One of these has been the service industry, significant at 14.06% of the 2004 national GDP (Central Bank of Chile).
Services include several sectors, the most important of which are education, financial services, telecommunications and tourism.
Financial Services
The Chilean capital market has prospered in the last 15 years, sustained by solid financial institutions, an increase in domestic savings and in the confidence of foreign investors. The financial system has developed from the establishment of a few private firms to an active market of banks, valuable stock exchanges, specialised service providers and investment institutions. The financial participants apply up-to-date technology so as to provide accurate, relevant and transparent information to national and foreign investors.
Banks
The national banking industry consists of 26 institutions, excluding the Central Bank. These include 19 Chilean building societies, 6 branches of foreign banks and one state bank.
The banking sector offers services including home loans, credit cards, business credits, insurance, finance and letting. Combined activities have grown en conjunction with a robust economy. Banking activities reached US$78.8 billion en December of 2003, representing a growth of 3.95% for that year.
Telecommunications
Advances in technology, coupled with globalisation of markets, has resulted in a great push for improved telecommunications in Chile. A wave of deregulation and privatisation in the 1980s placed the industry in good stead to compete across borders. Better services, new technologies and improved competence has stimulated an energetic expansion of the telecommunications sector. Chile was one of the first countries to completely digitalise the national network globally.
Strong market competition has translated into abundant possibilities for the consumer within the telecommunications field. Chilean consumers currently enjoy a choice of 14 long-distance carriers.
The mobile telephone is the sector of most growth within the industry. In March, there were 6706 subscribers to mobile telephone networks. Yet local.
Information Technology
The boom in information technology is revolutionising the Chilean economy. Chile enjoys the highest Internet-use index in Latin America. The increase in ‘online-activity’ has been boosted by a progressive drop in access costs, as well as by a growth in local content and active presence of local companies.
The Internet was accessed by more than 30% of the population by the end of 2004, and while users are still cautious in regards to online purchases, the attitude is fast changing. According to the Trade Office in Santiago, total internet purchases by local consumers reached US$2500 million in 2002, 75% more than the previous year. This office estimates that online purchases will grow a further 70% in 2005.
Business Opportunities
The Chilean market offers great opportunities for manufacturers of computers and related equipment. Domestic demand has grown rapidly, driven mainly by demand in government and education sectors. The interest in personal computers has been particularly great, followed by demand for transportable units. As is apparent in the telecommunications sector, local providers play a minimal role in the computer market, counting for only 0.6% of market share in 2001.