Open banking in Colombia: the financial sector debates its future

Colombia’s financial sector is at the forefront of what is likely to be the biggest technological transition in decades, with the development of an open financing model that will bring together different players to shake up competition. But while banks, fintech companies and other institutions seek to implement clear rules, drawing inspiration from the experiences of their neighbors, doubts remain about how the system will work.

The model will directly influence the industry and how it distributes products through its digital channels. Innovative strategies such as personalization of services or alliances with technology companies and retailers are expected to grow to attract and retain users who, being the new owners of their transactional data, may be tempted to switch offers more easily.

Although the main goal of the system promoted by the authorities is to empower consumers and offer them better services, there is still uncertainty about who, how and how the information will be shared. This topic was central to the discussion of the managers and experts who gathered Iupana at the Executive Roundtable: “Opportunities for Banking in the Age of Open Data” held in Bogota, Colombia at the end of May.

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