FinUp Expands as Colombia’s Household Debt Fuels Demand for Debt Negotiation Solutions

The increase in financial obligations of Colombian households and the pressure they still represent on family spending boosted the growth of alternative debt negotiation models in the country. In that context, the fintech FinUp consolidated an operation focused on individuals with difficulties in meeting their credit obligations, through a negotiation scheme that allows debts to be settled with discounts of up to 70%, without granting new credits.

According to the Central Bank’s Financial Stability Report for the first quarter of 2025, Colombian households allocate an average of 23.6% of their spending to loan payments, with figures reaching 35% in February of that year.

Meanwhile, the Financial Superintendency reported a total loan portfolio of COP 763 trillion as of December 2025 and a real annual reduction of 16.4% in non-performing loans, amidst a process of normalization in the credit market.

FinUp’s model is focused on negotiation

Fabiana Ariza Serrano, co-founder and marketing director of FinUp, identified a segment of users in this scenario who, despite being willing to pay, found no alternatives other than taking on new financial obligations. The company was created using a model that combines technological tools, human support, and negotiation with creditors.

“In Colombia, access to formal credit has grown—more than 96% of adults have at least one financial product, according to the Financial Superintendency. But that hasn’t solved the problem of over-indebtedness. We identified an underserved segment: people with outstanding debts who need a structured solution, not more financing. That’s where FinUp’s business lies, and that’s where the real impact is,” Ariza pointed out.

The fintech’s business strategy focuses on acquiring users with partial repayment capacity and obligations that have become difficult to manage under the initial terms agreed upon with financial institutions or creditors. The process includes individualized analyses of debt type, credit history, delinquency period, and the client’s actual ability to pay.

According to the company, each negotiation is structured independently to define viable discounts and sustainable payment plans. The company maintains that personalized analysis is a necessary condition for achieving effective settlement agreements and reducing process abandonment.

Expansion in the fintech ecosystem

FinUp operates in a different segment than most Colombian fintech companies, whose main activity is concentrated in digital lending, payments, or investment. The company has focused its operations on the financial transformation of indebted users and their subsequent reintegration into the formal financial system.

“Our client is someone with partial ability to pay and an obligation that, under the original conditions, became unmanageable. What FinUp offers is clarity: a realistic assessment of their situation, a structured payment plan, and concrete negotiations with the creditor to settle their debts. The result is a settled debt, not a deferred one,” Ariza stated.

New meeting seeks to unblock payments and formalize contracts between entities

The company complemented its operations with a financial education platform called Academia FinUp and an internal scoring system for rebanking processes. It also plans to offer credit lines to users who make satisfactory progress in their payment programs.

Currently, the fintech company has a presence in Bogotá, Medellín, Cali, Barranquilla, and Bucaramanga. The company has also begun a phase of international expansion, supported by the growth of its user base and the volume of its managed portfolio.

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

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