7 ways BPM is transforming public services in Latin America

Are we customers of public services, or shareholders who collectively own our government? This question matters because many Latin American nations have turned to business process management (BPM) to streamline efficiency and enhance citizen experiences.

Yet, for each success in tax filing or e-government, data privacy, unequal connectivity and inclusion remain pressing issues. Below are highlights of these transformations – where BPM has delivered real gains, and where challenges persist.

Filing taxes in minutes – but mind the digital divide

• Chile: As a Chilean, I can file my annual taxes in around five minutes, thanks to an e-portal that pre-fills returns using data from employers, banks and more. Indeed, over 99 percent of income tax returns are now filed electronically, boosting compliance and significantly reducing bureaucracy. Chile’s Internal Revenue Service (SII) once earned a UN Public Service Award for its pioneering website – a testament to how BPM-driven processes can transform public-sector efficiency.
• Mexico: Mexico’s Tax Administration Service introduced electronic invoicing (CFDI), credited with raising revenues in some tax categories by up to 48 percent. By centralizing data and automating checks, these BPM reforms curtailed underreporting, streamlined filing and formalized millions of micro-enterprises. Despite these feats, rural areas lacking internet and populations with limited digital skills still face hurdles. While the upside is rapid filing, increased compliance and lower administrative costs, the downside is an unresolved digital gap.

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E-government portals: Convenience versus equity and privacy

• Chile’s Clave Única: Over 14 million citizens (around 70 percent of the population) use this single digital ID, drastically cutting in-person government visits. However, centralizing personal data raises privacy concerns, especially if security lapses occur.
• Costa Rica: Often cited as a regional leader in e-government, Costa Rica allegedly reduced in-person visits by 50 person with its integrated platform, though official data is unconfirmed. Even so, digital adoption has grown considerably. Citizens lacking devices or know-how remain a challenge, underscoring that BPM alone can’t solve the inequality in tech access.

Financial inclusion, procurement and education

• Brazil’s Pix: Launched by the Central Bank in 2020, an instant payment scheme Pix lets more than 130+ million Brazilians (over half the population) and over 15 million companies, send money instantly at minimal cost. This success in financial inclusion exemplifies BPM in action, mapping out near real-time transactions across banks and FinTech and democratizing financial inclusion. Rapid uptake, however, raises cyber risk and highlights the need for robust anti-fraud measures.
• ChileCompra: Government e-procurement has reportedly delivered 28 – 32 percent cost savings in certain bulk purchases, thanks to aggregated demand and transparent bidding. The platform once received a UN Public Service Award for advancing transparency and efficiency, and it continues to help small businesses compete for public contracts.
• Uruguay’s Plan Ceibal: Over 500,000 devices have been distributed to students and teachers in a country of roughly 3.5 million, making Uruguay an early adopter of one-to-one computing in public schools. While this massive rollout garnered praise (and international recognition for bridging the digital divide in education), maintaining the devices and fully integrating them into lesson plans is an ongoing challenge.

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BPM is only part of the puzzle

Even the most effective BPM solutions won’t close digital divides, solve cultural barriers or address privacy vulnerabilities by themselves. BPM helps governments map workflows, eliminate red tape and automate tasks – but truly inclusive transformation requires strong data protection, digital literacy programs and supportive policies to ensure everyone benefits. Viewing citizens as “customers” can spark user-friendly innovation, while seeing them as “shareholders” emphasizes a duty to serve all.

The best approach blends both mindsets: provide customer-grade convenience with a steadfast commitment to the public good. From five-minute tax filing in Chile to instant payments in Brazil, procurement savings via ChileCompra and Plan Ceibal in Uruguay, Latin America exemplifies how BPM can reduce bureaucracy and improve citizens’ lives.

Yet the journey isn’t over. Data privacy, inclusion and connectivity remain critical concerns. As these initiatives mature, operational excellence (OPEX) must genuinely include every citizen – whether they see themselves as a “customer,” a “shareholder” or both.

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