Fintech Companies Help Colombian Economy through Foreign Investment

Fintech companies became well known, especially thanks to the Covid-19 pandemic, however, they had already been in the making for several years, as the advance in technology does not stop and its ‘marriage’ with the different financial institutions made possible the arrival of so many digital tools.

Colombia Fintech, for example, has been operating for four years and is made up of more than 250 companies from the innovation ecosystem in the country. Seventy percent of the community are fintech companies (financial technology), while the remaining 30% corresponds to the value chain.

According to this association, between 2020 and 2021, financial technology companies will grow by up to 80% and at the end of last year, there was an increase of 39%, from 200 companies in this industry to 279.

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Why do investors think is a good idea to invest in the Colombian fintech sector

In this regard, the report Radar Fintech & Incumbents 2021 of the Inter-American Development Bank (IDB), identified that the number of fintech ventures in Latin America is 2,482, with a growth of 112%, versus 2018.

This being the case, dozens of foreign companies and investors decide to inject startups and different new ventures, several million dollars, as they agree that Colombia is a good place to do so, since its geographical location facilitates the arrival to other Latin American countries.

Colombia is the tenth country worldwide with the largest transaction of cryptocurrencies and the second in the region after Venezuela, according to the latest United Nations Trade and Development report for June 2022. So the Chilean fintech CryptoMarket announced the start of its operations in the country, with which they expect to reach more than 10,000 active users in the Colombian territory by the end of its first year of operations, taking advantage of the fact that you can operate from $ 5,000 COP.

“It will make it easier for thousands of people and companies in this country to access the new world of decentralized finance, allowing them to buy and settle cryptocurrencies directly with Colombian pesos instantly, with a liquidity that ensures competitive prices, even in the face of large transactions,” said Francisco Sáez, CEO of the CM.

Meanwhile, it is known that foreign investment in Colombia as of June of this year grew 77.6% according to Banco de La República. Mobyle Engage is investing $2 million to make Colombia the center of GiveMe’s operations in Latin America and expects a 70% growth of its workforce with Colombian talent.

Mauricio Sabogal, its director, stated that he found in Colombia a place full of excellent human talent, so they seek to “contribute to the generation of employment with the constant vacancies for marketing and technology profiles, in addition to the fact that geographically it allows us to reach other countries in the region in a more efficient way; so we decided to contribute to the creation of GM’s operations center in this country by investing in hiring personnel, sales infrastructure and technology.”

BPC, digital payments provider, joined Colombia Fintech, in this regard, Juliana Peña, vice president of sales Andean region, said that this union is “a sign of support for new disruptive models in digital banking, payment networks and fintech, through a technological infrastructure that allows its enablement in a short time”.

For his part, Gabriel Santos García, CEO of Colombia Fintech, stated that the company (payments technology), “has become a great promoter and articulator of fintech in the country. As a result of the different alliances with local companies in the industry, they promote financial inclusion, especially in those sectors of the population that are traditionally more neglected”.

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(Featured image by pasja1000 via Pixabay)

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First published in Semana, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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