Fintech Companies Are Creating 26,000 Jobs in Colombia

According to the ‘Fintech Snapshot 2023-2’ report that examines the current state of the Fintech sector in Colombia and where key aspects such as employment, investment in technology and investment rounds of fintech companies are evaluated, in Colombia more than 20,000 jobs are in this sector. 

The report was revealed within the framework of version 13 of the Colombia 4.0 event, one of the most important technology events in the country and organized by the Ministry of ICT. There the president of Colombia Fintech, Gabriel Santos García, highlighted the data from the most recent diagnosis of the Colombian fintech ecosystem.

“Colombia has a young ecosystem of highly innovative companies that are generating more than 26,000 jobs that deserves to be recognized in the regulatory scenario at the national and local level. We hope that both those who were elected in the last elections, as well as the National Government, based on this report, will help us to continue promoting the fintech ecosystem through better regulation that allows us to continue growing, positively impacting the lives of people. Colombians,” said Santos.

According to Colombia Fintech’s own estimates, the sector as a whole generates 26,814 jobs in the country. Around 45 percent of fintech companies that have between 20 and 249 employees have been in the Colombian market for between 6 and 20 years.

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Fintech companies are revolutionizing the financial landscape in Colombia and, in turn, are significantly boosting job creation in the country

These data are added to those provided by Finovista and Visa this year in which they found that Colombia’s Fintech ecosystem presented a growth rate of 19.7 percent in the last five years and is consolidated with 369 startups, being the third most big in Latin America after Brazil and Mexico.

The report, prepared by the Colombia Fintech research team, led by the PhD in Economics, María del Pilar López Uribe, highlights that 28.6 of the Fintech companies in the country are financed with their own resources (Bootstrapping) and that on the other hand , 46.4 percent of fintech companies invest more than 30 percent of their operational income in technological capital.

“This report presents new information to understand the ecosystem and the magnitude of its potential. Presents real figures of its size and characteristics. In this I highlight how the Fintech sector is promoting key aspects of the economy such as job creation, support for financial inclusion and investment in new technology. We hope that the ecosystem continues to grow and boost the country’s growth, especially in times of slowdown,” added María del Pilar López-Uribe, director of economic studies at Colombia Fintech.

Investment in technological capital plays a fundamental role in the success and sustainability of fintech in Colombia

Regarding the investment rounds in which Colombian fintech companies are located and the development stage, it is highlighted that the two leading verticals in the ecosystem are: Digital Credit (35.6%) and Digital Payments (28.8%)

Agree With the report this means that the verticals with their technological solutions   are contributing significantly to real financial inclusion and combating the “Gota a Gota”.

The study pointed out that 63 percent of the country’s fintech companies are microbusinesses. Half of them are nascent, that is, they are between 1 and 5 years old. Likewise, 95 percent do not exceed 20 years of incorporation.

In the case of the location of these companies, Colombia reflects a strong concentration in Bogotá. The capital is the undisputed epicenter of fintech activity in the country with 68.1 percent.

However, a significant presence is observed in Antioquia, with 19 percent of the country’s Fintech companies, on the other hand, although to a lesser extent, Atlántico and Valle
del Cauca also contribute with 4.4 and 3.6 percent respectively, which suggests an incipient but promising Fintech expansion in different regions.

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First published in EL TIEMPO. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.

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