Colombia aims to promote the use of small-scale distribution channels for financial products
Colombia Banking and Finance Alert
The Colombian government released a technical document analyzing ways to extend the use of financial services, promoting access to technological innovation.
In the document, the government proposes modifying Decree 2555 of 2010 in order to make banking service correspondent models more viable, whereby services are provided through electronic devices or platforms, without requiring a physical establishment. Colombian officials also propose allowing the channel to be segmented by service level, and for operating and security requirements to be adjusted to the risk actually assumed by the banking service correspondent. Lastly, the technical document addresses establishing a principle of interoperability between banking service correspondents’ networks, designing mechanisms to manage liquidity and to eliminate the need for prior authorization in correspondent contracts by the Colombian Finance Authority.
With respect to electronic savings accounts, simplified procedure savings accounts and simplified procedure electronic deposits, the government proposes increasing the limit on withdrawals and balances, removing amount restrictions when the source of funds is unknown, and broadening the different customer segments to which this type of financial products can be offered.
Lastly, lawmakers propose amending regulations on small loans by increasing the maximum amount and the deadline for reporting to information centers, and including the possibility of making disbursements into simplified procedure accounts.
The deadline for submitting comments on the current regulation and on the proposed changes is June 14, 2019. The technical document can be viewed here.