Colombia: Fintech regulatory framework and challenges

Recently, the financial service's industry in Colombia has undergone substantial changes driven by technology, which have greatly reduced operational costs, provided higher quality, increased efficiency and expanded access and inclusion for credit and financial services. 

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Considering the local economic context, Colombia ranks as the third most important country in Latin America, only surpassed by Brazil and Mexico. It has an approximate flow of capital for investment in financial technology of $10 million per year and has achieved an exponential gross growth of 45% in the last year and half. This includes investments in a wide range of innovative business models, applications, processes and products, mainly related to clearing and settlement services and credit, deposit and capital-raising products. 

This continuing trend has clearly demonstrated the potential positive impact of the Fintech industry in financial services and the broader economy. Accordingly, the Colombian government and the Superintendence of Finance – the banking regulator – have recognized the necessity of addressing the evolving characteristics of the financial ecosystem and the need to promote its growth through responsible innovation.

Even though the Colombian regulator and supervisor have not yet committed to establishing a comprehensive regulatory framework for the Fintech industry, rules are being designed slowly, but effectively, and meaningful steps have been taken to facilitate and promote the application of innovation and technology.

As such, Colombian policymakers enacted Law 1734of 2014, which facilitated the creation of specialised electronic deposit and payment companies (SEDPEs) to promote a more robust digital transaction environment. Moreover, the issuance of Decree 661 of 2018 further encouraged the use of newtechnology-based tools in the securities market.

To the same extent, as an attempt to promote innovation, competition and productivity growth in the industry, in 2018, through the enactment of Decree 1357, crowdfunding platforms were finally regulated, and Decree 2443 now allows traditional financial institutions to directly invest in innovation start-up businesses and operate as joint partners or via other structures.

Recently, the Superintendence of Finance has putin place initiatives to test and understand new technologies and innovations to properly assess risks and opportunities associated with Fintech and the banking sector. As such, it has launched a regulatory sandbox (InnovaSFC programme) as an initiative to encourage innovation in the financial sector, where firms and start-ups can participate in and conduct tests on their products and services with targeted regulatory assistance. Examples of the most promising projects include data analytics, artificial intelligence and payment systems.

In view of the above, the Colombian government, through the publication of the National Development Plan for 2018 to 2022,announced key upgrades to the regulatory system, especially regarding rules and challenges related to risk management procedures and core infrastructure arising from the use of Fintech.


Puntuación
Posición en Iberoamérica
1
Juan Esteban Saldarriaga
Vice President at Alianza FinTech Iberoamerica | Co-Founder Rapicredit | ColombiaFinTech.co
24.4
5
2
Edwin Zácipa
Executive Director at Colombia FinTech | Managing Partner MiBank.co | Founding Member FinTech IberoAmérica
20.4
17
3
Diego Molano
Consultor internacional en temas de TIC e innovación
19.4
18
4
David Velez
Founder and CEO at Nubank
17.0
27
5
Martin Schrimpff
Co-Founder of Zinobe | Founder of PayU | Founder Pagosonline.net
15.6
32
6
Ángel Sierra
Director Ejecutivo en Asociación FinTech e InsurTech de Chile | Member of Alianza FinTech Iberoamerica
14.8
39
7
Paula Cardenas
Business Manager at AEFI | Founder Member FinTech IberoAmérica
14.5
42
8
Clementina Giraldo
FinTech & AgTech in Latin America
11.8
60
9
Juan Francisco Schultze-Kraft
Board Member – Vicepresident at Colombia FinTech | PayU Legal
11.4
63
10
Daniel Rojas
CEO & Co-Founder at Rocket.la
10.1
69
11
Alan Colmenares
Digital Transformation Enablement – Latam at Microsoft
7.3
89
12
Laura Gaviria Halaby
Global Head FinTech Acceleration at Citi | Chief Acceleration Officer at TheVentureCity
6.3
101
13
Diego Alejandro Guzman Guevara
CEO and Co Founder at Bankity
6.2
104
14
Andres Ramirez Sierra
CEO at Banlinea LATAM
6.2
105
15
Daniel Navarro
CEO & CoFounder at NIMMÖK
6.1
109
16
Fernando Sucre
CEO at ComparaMejor
5.9
110
17
Andres Villaquiran
Founder & CEO Alkanza
5.3
119
18
Carlos Castañeda Olaya
Open innovation leader at Accenture | Country Manager at Wayra
5.2
123
19
Marisol Camacho
Director of Corporate Relations at Bancóldex | Director of Mindset at iNNpulsa Colombia
4.6
131
20
Felipe Valencia
Partner at Veronorte
3.7
143
Conoce más de estas Fintechs
Las empresas Fintech mencionadas en este artículo ya no hacen parte de la Asociación. Por lo tanto, Colombia Fintech no puede dar una recomendación positiva o negativa de la calidad de sus ex miembros, ni asume ninguna responsabilidad por ello.
Las opiniones compartidas y expresadas por los analistas son libres e independientes, y de ellas son responsables sus autores. No reflejan ni comprometen el pensamiento u opinión de Colombia Fintech, por lo cual no pueden ser interpretadas como recomendaciones emitidas por la Asociación. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista sobre el ecosistema Fintech.