Of the 346 Fintech Companies in Colombia, 35.6% Focus on the Digital Credit Market

Colombia Fintech, the association that brings together these financial technology companies, revealed data from the most recent of its study entitled “Fintech Snapshot 2023-2”. According to the report, as of July 2023, there were 346 fintech companies in Colombia classified in nine different verticals.

Read more about the fintech companies in Colombia and why they focus on digital credit, and find the latest financial news of the day with the Born2Invest mobile app.

Most of them, 35.6% of the total, are dedicated to granting digital loans

“This indicates that digital financial solutions related to credit are in high demand and have a significant impact on the fintech market,” according to the study.

Edwin Zacipa, founder of Latam Fintech Hub, said that there is increasing acceptance in society of electronic payments: “There are about 63 paytech companies in the local market, which represents 20% of the fintech companies.”

In second place is the Digital Payments vertical with a 28.8% share, which shows, according to the study, that there is a growing adoption of digital payment methods in the financial industry.

These figures are supported by data from Credicorp’s latest Financial Inclusion report, which indicates that 46% of Colombians use digital wallets to make payments.

“Colombia has a young ecosystem of companies that generate more than 26,000 jobs and deserves to be recognized in the regulatory scenario at national and local level.” said Gabriel Santos, President of Colombia Fintech.

In third place, although with a more modest presence in contrast to the first two verticals, are companies oriented to Enterprise Finance and cryptoassets & Blockchain, both with a 7.6% share.

There are also fintech companies engaged in other activities such as Regtech (7.2%), PFM & Wealthtech (6%), crowdfunding (2.8%), Neobanks (2.8%) and Insuretech (1.6%)

On the other hand, the report notes that the fintech sector generates around 26,000 jobs. “Colombia has a young ecosystem of highly innovative companies that are generating more than 26,000 jobs and that deserves to be recognized in the regulatory scenario at the national and local level. We hope that both those who got themselves elected in the past elections, as well as the National Government, based on this report, will help us to continue boosting the ecosystem, with better regulation, which will allow us to continue growing,” said Gabriel Santos, president of Colombia Fintech.

The report provides other relevant data, such as that around 45% of fintech companies with between 20 and 249 employees have been in the Colombian market for six to 20 years. On the other hand, 46.4% of fintech companies invest more than 30% of their operating income in technological capital.

Likewise, 28.6% are financed with their own resources (Bootstrapping). The analysis of the investment rounds in which Colombian fintech companies are involved reveals a diversity in the sources of financing and stages of development.

In addition, 63% of the country’s fintech comapnies are micro-enterprises; half of them are nascent, i.e., they are between one and five years old; 95% are less than 20 years old; and finally, their distribution in Colombia reflects a strong concentration in Bogota.

__

(Featured image by nattanan23 via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in LR LA REPUBLICA. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.