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FinTechs belonging to this category offer asset and portfolio management services via an internet platform or software programs and usually manage and dispose of the assets of their customers long or short term according to their specifications without actually holding the property or the possession of those assets. FinTechs, which provide information about and access to overnight or time deposit accounts at national and foreign banks and which execute the transactions to these accounts, also belong to this category. Some FinTechs however only act on request of the customer.
Aside from that some FinTechs offer software or internet solutions enabling users to manage and plan their personal finances on their own by providing graphics, overviews and compilations of their financial data and sometimes indicating financial risks or opportunities, but without actually managing the assets.
Introduction
Attitude of the country towards modern asset and portfolio management services
Article 335 of the Colombian Constitution states that financial, stock market and insurance activities and any other activity related to the management, use and investment of funds collected from the public are of public interest and can only be performed with the prior authorization of the Colombian State.
Thus, the activities referred above can only be carried out with prior authorization from the Colombian Superintendency of Finance. To this effect, the requirements stated by the Colombian Financial Organic Statute must be complied with to obtain the relevant license to operate as a financial institution in Colombia.
The social climate towards modern asset and portfolio management is developing positively within the population. People are now looking towards new and innovative ways to invest and obtain profits. Yet, the government is still very conservative and only those with prior authorizations are allowed to safeguard and manage these types of investments. Being this so, the development of this segment has been somewhat slower.
Despite this, 4% of all FinTechs established in Colombia are currently active in the Personal Financial Management (PFM) & Wealthtech segment, showing a slight decrease from the previous year’s 6%. This segment has the highest proportion of young companies, with 60% of them being between 6 and 20 years of formal operations. This suggests that this segment has experienced significant growth and development in recent years. This trend may indicate a growing demand for services related to wealth management and personal finance, as well as increased consumer confidence in the digital solutions offered by these FinTechs.
Legal affairs
Obligations and requirements to provide asset and portfolio management, or ancillary services described above
There is no specific regulation in Colombia regarding FinTechs offering asset and portfolio management services via an internet platform or software programs. FinTechs or other companies offering asset and portfolio management services via an internet platform or software programs to manage and dispose of the assets of their customers will require an authorization from the Colombian State.