Name
Global FinTech Guide
Country _ Name
Colombia
SectionTitle
Asset and portfolio management
Body
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 authorisation of the Colombian State. 

Thus, the activities referred above can be carried out with prior authorisation from the Financial Superintendence of Colombia. 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 other than the ones in their day to day lives. Yet, the government is still very conservative and only those with prior authorisations are allowed to safeguard and manage these types of investments. Being so, the options are limited and are slowing down the development of innovative technology. 

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. Therefore, 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 authorisation from the Colombian State.

In addition, Decree 2555 of 2010 states that portfolios can only be managed by stockbroker companies, trust companies or investment management companies duly authorised by the Colombian Finance Superintendence.

Additional comments regarding the legal situation for asset and portfolio management services or what FinTech’s must be aware of in this business area

N/A.

Economic conditions

Market size for asset and portfolio management services and biggest companies in this business area

Asset management industry is a growing market. Financial innovation is an inexhaustible source to realise the growth potential. The biggest companies in the market are:

  • Citibank;
  • Davivienda;
  • Scotiabank-Colpatria;
  • BBVA (Banco Bilbao Vizcaya Argentaria);
  • Bancolombia; and
  • Banco de Bogotá.

Additional comments regarding the economic situation for asset and portfolio management services or what FinTech’s must be aware of in this business area

Financial innovation is an almost inexhaustible source to materialise the growth potential. The main function of the sect

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