‘Fintech, a revolution in the Colombian regions

Fintechs and neobanks arrived to complement market offerings and help the unbanked population access financial services. Today, Colombia is the third most important hub in Latin America.    

By: Erick Rincón Cárdenas

The advancement of digital technology and its application in almost all sectors of society, including the financial sector, has led to the emergence of numerous companies, different from traditional financial companies, that offer a wide range of products and services through their platforms. Currently, financial technology companies or fintechs are allowed to compete in the provision of services, without being considered banking entities or being subject to their current legal regime.

Fintechs (finance and technology) are companies that offer different financial services and products through a combination of design, technology, user experience, and agility; their main purpose is to improve financial inclusion indicators in society by reaching audiences that are underbanked or unbanked. The goal includes a significant spectrum of the population in regions that sometimes lack the solvency conditions to access conventional products or services.

Fintechs have experienced exponential growth in recent years. Colombia reports a 45 percent growth in new fintech startups compared to 2010. The country has positioned itself as the third most important hub in Latin America: 322 consolidated financial technology companies have been identified in the last year, with a 114 percent growth since 2017. This is a revolution that, of course, has an impact throughout the national territory. In the regions, the most widely used fintech solutions are digital credit and electronic payments.

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