Name
Global FinTech Guide
Country _ Name
Colombia
SectionTitle
RegTech and compliance management
Body
RegTech is composed of the words “regulatory” and “technology”. It is a collective term for the application of modern technologies, to get the increasing regulation in the banking- and financial sector under control both from an IT and a legal standpoint.

Introduction

Attitude of the country towards RegTech-services

The social and political climate towards RegTech-services is positive. The Colombian Superintendency of Finance launched the first regulatory sandbox in Colombia to facilitate the innovation in the Colombian financial industry. This regulatory sandbox has facilitated that FinTechs companies and other innovators develop different projects in a controlled environment under the Superintendency's supervision.

The purpose of the RegTech tool is to take advantage of technological developments to boost innovation, optimize internal processes and reduce certain operational burdens of the Superintendency of Finance.



Legal affairs

Obligations and requirements to provide RegTech-services

RegTech services are not yet specifically regulated under Colombian law. However, the Colombian Superintendency of Finance (SFC) has recognized the strategic importance of RegTech as a driver for modernizing supervision and strengthening compliance processes in the financial sector. In this context, the SFC is actively working on the so-called RegTech Project, an initiative designed to encourage the development and implementation of digital applications that facilitate and automate compliance with regulatory obligations. The project’s main goal is to streamline how supervised entities submit information, reduce operational risks linked to manual processes, and enable real-time monitoring and reporting through standardized digital channels.

This proactive approach aligns with Colombia’s broader digital transformation agenda for its financial system, which emphasizes innovation and the use of advanced technologies such as AI, big data analytics, and secure cloud computing to improve oversight capabilities. Although there is no specific legal framework exclusively governing RegTech services, current AML/CTF regulations, data privacy laws, and the Basic Legal Circular set technical and operational parameters that indirectly shape how RegTech solutions must operate. As this project evolves, it is expected that the SFC will issue clear guidelines or frameworks to formally recognize RegTech providers as an integral part of the national compliance and supervisory ecosystem.

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

N/A


Economic conditions

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

In 2015, there were two (2) suppliers of RegTech services in the market, in 2021 we had 15 suppliers of this type of product, in 2021 there where at least 19 registered RegTech suppliers.The increase has been a success, and this shows that Colombia is upgrading significantly on par with the major economies of Latin America.

Among the largest RegTechs FinTechs in Colombia are the following:

  • Swiset
  • Insttantt
  • Proware Biometric
  • Visit Entry

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

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