Name
Global FinTech Guide
Country _ Name
Colombia
SectionTitle
Online banking services
Body
FinTechs belonging to this area offer traditional banking services in a modern way, usually through online services or mobile applications as well as ancillary services – e.g. enabling customers to manage their giro- or custody-accounts online and in real time or offering e-wallet services. Keywords in this context are also API-Banking or Banking as a Service (BaaS)/ Bank as a Platform (BaaP).

API-Banking:

API stands for application programming interface and is offered to access data banks and to extract and insert information. API-Banking consequently means the access to data banks of banks to offer new and innovative banking applications.

Through these services FinTechs offer services with new functions, e.g. enabling customers to manage their accounts online and in real time.

BaaS – Bank as a Service/BaaP – Bank as a Platform:
 
The API-based Bank as a Service platform has a full banking licence, but merely serves as the back end for standalone independent FinTechs, which “use” the licence and the back end of the bank to offer new financial services, launch additional financial products or expand into additional markets.

Introduction

Attitude of the country towards online-banking services

Colombia has positioned itself as one of the leading markets in Latin America for online banking and digital payments, supported by a steady growth in internet access, mobile access, and a young, digitally active population. The country’s interest for digital channels is reflected in the remarkable expansion of digital transactions, which represented 81.5% of all transactions in the fourth quarter of 2024, according to recent industry figures. This means that traditional in-person cash payments and branch-based services are rapidly losing ground to online banking apps, mobile wallets, and other digital platforms.

The number of Colombians using digital wallets and online payment solutions has skyrocketed. By late 2024, there were more than 54 million unique users relying on digital wallets for daily transactions. Projections indicate that by 2025, more than 25 million Colombians will be making regular payments and transfers through fully digital channels. This reflects a clear attitude among consumers: convenience, speed, and accessibility have become decisive factors in how people choose to manage their money, pay bills, receive wages, and buy goods and services.

This growing preference for digital channels has been supported by both the private sector and the government, which continue to promote the shift toward financial inclusion through technology. The increasing volume of digital transactions has also encouraged banks and FinTech companies to invest in better user interfaces, real-time services, and interoperable systems that make it easier for people to send and receive money with minimal barriers. For many Colombians, mobile and online banking services are now their main point of access to the formal financial system, especially in regions where physical bank branches remain scarce.
However, this rapid digital transformation also brings significant challenges. Fraud related to digital transactions is a persistent risk: in the first six months of 2024 alone, fraud cases increased by 7.5% compared to the same period in 2023 . This shows that while users increasingly trust digital services for their everyday financial needs, there is still an urgent need for stronger security measures, education on safe online behavior, and updated regulation to protect consumers from scams and unauthorized operations.

Despite these risks, the country’s attitude remains optimistic. Colombians are demonstrating a clear willingness to adopt new financial technologies and experiment with innovative payment solutions. This trend is aligned with a broader regional push for financial inclusion and digital transformation, positioning Colombia as one of the most dynamic markets for online banking and digital finance in Latin America. The expectation is that digital channels will continue to attract more users, reduce the dependence on cash, and stimulate the development of new services that connect consumers, businesses, and the broader economy in faster and more efficient ways.


Legal affairs

Obligations and requirements to provide online-banking services described above

Decree 1297 of 2022 outlines provisions for the development of an open finance architecture aimed at fostering greater competition, inclusion, and efficiency in the provision of financial services. The decree highlighted that, according to existing legislation on data, entities under the supervision of the Colombian Superintendency of Finance can process and market data provided they have user authorization.

Furthermore, Decree 1297 of 2022 addressed digital ecosystems within the context of open finance, recognizing the possibility for third parties to offer products or services for commercialization through non-presential channels of Colombian Superintendency of Finance supervised entities. If the third party is not under Colombian Superintendency of Finance’s supervision, their offering must be connected to or promote to some extent the use of products or services of the supervised entity. If the third party is also under supervision, existing rules regarding network usage contracts apply.

The decree also referred to models generally known as Banking as a Service (BaaS), allowing financial services to be provided in digital ecosystems of unsupervised third parties and redirecting users to digital environments of entities supervised Colombian Superintendency of Finance. If services are provided in the unsupervised environment, rules of digital correspondence, also updated by Decree 1297 of 2022, apply.

The Basic Legal Circular contains regulatory aspects governing the provision of operational services through cloud computing for entities under the supervision of Colombian Superintendency of Finance. The regulation sets parameters for service provision, including requirements such as certifications, compliance standards, and the availability of control reports. Additionally, it mandates a minimum availability of 99.5%, robust data privacy policies in data centers, encryption of classified information using algorithms both in transit and at rest, encrypted end-to-end communication channels using different routes, and mechanisms for data backup.
Furthermore, significant regulation is found in the Organic Statute of the Financial System, particularly regarding risks. Non-compliance with the mentioned duties empowers Colombian Superintendency of Finance to impose fines (ranging from US$ 65,000 to US$ 328,000), suspend or disqualify for up to 5 years, remove managerial positions within the company, or even close representation offices.

FinTechs intending to offer online banking services must obtain an authorization from the Colombian State. Banking services (either, online or traditional services) can only be provided by authorized banks. The specific requirements to incorporate a bank in Colombia can be found in the Colombian Financial System Statute.

To provide online banking services, authorized banks must comply with the general quality standards and security requirements for data handling as stablished by the basic legal circular issued by the Superintendency of Finance.

Mainly, banks are required to:

  • Have a two-factor authentication system.
  • Have a data encryption system for transactions over two (2) minimum monthly wages.
  • Have a system that avoids duplicity of the operations due to communication issues.
Additionally, under Law 1266 of 2008 (Habeas Data Financiero – financial data protection), banks and online banking providers must observe strict obligations related to the handling of clients’ financial information. This includes ensuring data accuracy, confidentiality, and lawful use according to the client’s consent. Non-compliance can trigger administrative sanctions by the Superintendency of Industry and Commerce (SIC) and expose institutions to liability for damages.

In addition, through External Circular 004 of 2024, the Colombian Superintendency of Finance (SFC) set the technical, security, and interoperability standards for the effective deployment of open finance in the country. This new regulation builds on Decree 1297 of 2022 and establishes clear obligations for supervised entities to guarantee that consumer financial data is processed securely and only with explicit, informed consent. Entities must ensure that third-party data recipients meet strict requirements on data protection, cybersecurity, and consumer rights. The Circular also defines how supervised institutions can commercialize their technology or infrastructure with third parties, always under robust risk management policies and transparency duties. Financial institutions participating in open finance have 18 months to adapt their architecture, security, and technology frameworks to comply with these new standards and six months to implement the operational instructions. This regulation marks a milestone in promoting competition, financial inclusion, and consumer empowerment within Colombia’s digital banking and financial services ecosystem

Additional comments regarding the legal situation for online-banking services or what FinTech’s must be aware of in this business area

In Colombia, efforts have been made to democratize access to banking, eliminating a series of barriers to enter the financial system and making the requirements more flexible so that many more citizens can make use of such financial services.


Economic conditions

Market size for online-banking services and biggest companies in this business area

As already mentioned, by the end of 2024, 81.5% of all financial transactions in Colombia were digital, showing how firmly Colombians have embraced online banking and digital payment solutions. Traditional banks have strengthened their digital presence through robust platforms and apps. For example, Bancolombia remains the country’s largest bank with more than 6.5 million active digital users, while Davivienda reports over 5 million users of its online and mobile channels.

In the digital wallet segment, Nequi, initially launched by Bancolombia but now operating independently, has surpassed 18 million users, positioning itself as one of the top FinTech brands in Latin America. Similarly, Daviplata, backed by Davivienda, is another major player with over 15 million active users, focusing mainly on unbanked and underbanked populations. Other significant actors include Movii, with around 5 million registered users, and Dale!, Banco de Bogotá’s digital wallet, which has been gaining traction in both urban and rural areas .

This diverse mix of banks and fintechs reflects Colombia’s demand for more accessible, low-cost digital financial services. The market continues to expand, with estimates projecting more than 25 million Colombians using digital wallets, online banking, or FinTech platforms by 2025. This growth is driven by open finance initiatives, greater interoperability and a regulatory push for more inclusion and competition.

Additional comments regarding the economic situation for online-banking services or what FinTech’s must be aware of in this business area

N/A

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