The FinTech Industry in Colombia

Surely in the last few days you have heard the word “FinTech” in the media, friends and family. However, you are still not very clear about the meaning of this concept, but with this article we will help you to clarify your doubts and ignorance on the subject.

To begin with, we must know that when we talk about FinTech we refer to the union in English of the word Financial Technology, this refers to companies that provide financial services through innovative technology where they offer financial products and services, an example of how these organizations do it is through web platforms or mobile applications.

Although this term is usually used to refer to startups, who have been the main promoters of this radical change in the financial sector. Traditional companies in the sector have noticed the importance and need for Fintechs in today’s world, for this reason they have joined this transformation as did Bancolombia with its digital banking Nequi. It can no longer be said that this is only part of entrepreneurship.

Nothing has been left out of the fintechs in Colombia, since they have a huge market segment, categorized according to Finnovista in:

  • Payments.
  • Rating, Identity and Fraud.
  • Personal Financial Management: Comparison
  • Personal Finance Management.
  • Wealth Management.
  • Crowdfunding.
  • Corporate Financial Management.
  • Trading and Markets.
  • Insurance.
  • Business Technology for Financial Institutions.
  • Lending.
  • Corporate Lending.

Currently in Colombia there are more than 150 consolidated Fintechs, which is why we have positioned ourselves as the third country in Latin America with the largest FinTech market. This is quite relevant for the sector, since it shows the accelerated growth of these organizations that seek to improve the financial quality of Colombians and the country’s economy.

It is believed that Fintechs have been born recently and that it is a very new topic, but there are records that confirm that before 2011 several ventures with this focus had already been created. However, 60% of the current Fintechs in Latin America were born between 2014 and 2016.

There is a common point why Fintech companies emerge, they want to reduce the figures of financial inclusion allowing to give the opportunity to all people to access financial services. 23.7% of Colombians suffer from financial inclusion, it is not a figure of concern but there is still a big gap especially in rural areas where the lack of coverage and access to financial services is low and distanced from the needs of the population.

It is expected that for this 2018 the development of Fintechs in our country will continue, even more so with this year’s regulatory agenda concerning the sector, which opens the doors to the possibility of achieving in the near future a Colombian Fintech Law. According to Colombia Fintech (association of fintech companies in Colombia), to date there are more than 200 Fintech initiatives, it is expected that the year will have an extraordinary closing, growing even more in technological innovation for the country’s financial sector.

Fintechs revolutionized and will continue to do so, gaining more strength; the problem will be the lack of digitalization that a part of Colombians currently have, this may delay the adaptation of Financial Technologies in the finances of many. However, most Fintechs are made to make life easier for people, so they are very intuitive, easy and quick to use tools.

If you are a little worried because you have not yet integrated a Fintech into your financial life, now is the time, we assure you that you can find an application in the market that is tailored to your needs, take advantage of the opportunity to improve your finances and economy.

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