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FinTechs belonging to this category offer advisory and broking services for investments usually via an internet platform.
Robo advisory services usually offer an investment proposition following a series of questions concerning the personal financial background and the risk-bearing capacity of the user. Sometimes the respective platform also enables the user to directly execute the proposed investment.
Auto-trading concerns all services which automatically trade on behalf of the customer according to his or her specifications.
Apart from that some FinTechs collect and offer merely or as an ancillary service market information or operate comparison portals to increase the transparency of the capital markets and to help the investor with his decision-making.
There are also FinTech-advertising-services which advertise various financial services or products.
Introduction
Attitude of the country towards modern financial advisory and broking services
Robo-advisory is a fast-growing industry in Colombia. Due to their user-friendly, automated processes and low-cost portfolio management, robo-advisors are posing a challenge to traditional financial institutions and financial advisory services.
In Colombia, the use of new technologies has made the provision of services by financial institutions more efficient, appropriate, and effective. Thus, financial entities are not oblivious to the use of algorithms and models that can help them to provide advice with better results.
In 2024, local neobrokers reported around US $16.9 million in revenue and managed total assets worth approximately US $1.79 billion. At the same time, the robo-advisory segment is projected to reach about US $3.8 billion in assets under management by 2025, with an expected compound annual growth rate of 9.2% through 2029. These figures reflect rising demand for digital trading platforms, automated investment tools, and affordable wealth-building solutions among Colombian retail investors.
Legal affairs
Obligations and requirements to provide financial advisory and broking services, or ancillary services described above
Through Decree 661 of 2018, the National Government incorporated the express authorization for financial institutions to use technological tools in the provision of professional recommendations to their clients. This must adhere to the same rules as conventional advisory services, along with specific requirements set by the Colombian Superintendency of Finance regarding the use of new technologies.
The Colombian Superintendency of Finance expressed that technological innovation should enhance the value proposition for investors participating in the securities market. This involves developing new products and more agile access mechanisms to broaden the investor base, which require more informed, thorough, and precise client risk profiling and asset selection.
Moreover, it requires higher-quality information provision and greater transparency regarding associated costs. The Superintendency also noted that implementing robo-advisors has the potential to increase competitiveness, deepen and make investment processes more efficient, reduce costs for agents and investors, and enhance the client experience.