🇨🇴Colombia’s FinTech Boom: What You Need to Know
Colombia has quietly become the third-largest Fintech hub in Latin America (trailing only Brazil and Mexico), home to nearly 300 FinTech companies.
Today, the majority of Colombians are armed with smartphones, internet access, and basic banking facilities, laying down the perfect playground for an explosion of financial innovation and inclusion.
And with the government throwing its weight behind innovative FinTech solutions, licensing advancements, and Open Finance, the future looks incredibly bright.
In particular, several government actions have expanded fintech’s capabilities in Colombia in recent years:
𝗗𝗲 𝗡𝗼𝘃𝗼 𝗟𝗶𝗰𝗲𝗻𝘀𝗲𝘀 𝗘𝗻𝗵𝗮𝗻𝗰𝗲 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻
Securing a de novo banking license in Colombia has eased with the Compania de Financiamiento license, opening doors for fintechs like Rappi and Nubank.
This shift encourages competition in a market dominated by a few, with 60% of deposits held by the top three banks.
𝗢𝗽𝗲𝗻 𝗕𝗮𝗻𝗸𝗶𝗻𝗴 𝗣𝗿𝗼𝗺𝗼𝘁𝗲𝘀 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗜𝗻𝗰𝗹𝘂𝘀𝗶𝗼𝗻
Adopting an Open Finance framework, inspired by Brazil, Colombia aims for a transparent financial ecosystem, exploring the potential for bank account portability.
𝗜𝗻𝘀𝘁𝗮𝗻𝘁 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗣𝗿𝗼𝗽𝗲𝗹 𝗗𝗶𝗴𝗶𝘁𝗶𝘇𝗮𝘁𝗶𝗼𝗻
Following Brazil's Pix model, Colombia plans to launch a free, instant payment system by 2024, reducing transaction costs and promoting digital payments.
𝗙𝗶𝗻𝗧𝗲𝗰𝗵 𝗼𝗻 𝘁𝗵𝗲 𝗥𝗶𝘀𝗲
With 120% annual growth and a doubling of companies in five years, Colombia’s fintech scene thrives, backed by government support for a competitive, innovative financial sector. Entrepreneurs have a prime opportunity to shape the future of finance in the country.
I'm considering visiting Bogota soon, who do you think I should definitely meet/visit when I'm around? Let me know!
Cheers,
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