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FINANCIAL
INCLUSION
REPORT
FINANCIAL INCLUSION REPORT 2017
2
FINANCIAL
INCLUSION
REPORT
BANCA DE LAS SUPERINTENDENCIA
OPORTUNIDADES FINANCIERA DE COLOMBIA
Juliana Álvarez, Director Jorge Castaño, Superintendent
Carmen Cecilia León, Deputy Director Juliana Lagos, Director of Research and Development
Paola Arias, Chief of Business Intelligence Ernesto Murillo, Deputy Director of Analysis and Information
Daniela Londoño, Advisor María Fernanda Tenjo, Advisor
Sara Gómez, Advisor Mariana Escobar, Advisor
Michael Bryan, Advisor Kelly Granados, Professional
Marcela Jiménez, Analyst Yamile Castro, Professional
Produced by:
BANCA DE LAS OPORTUNIDADES www.puntoaparte.com.co

Bancoldex – Banco de Comercio
Exterior de Colombia S.A. Andrés Barragán, Editorial director
Calle 28 No. 13a - 15, piso 38 Mateo Zúñiga, Editorial director
Telephone: 486 30 00 Lina Martín, Editorial director
Customer service line: 756 11 72 Santiago Mojica, Designer
Other cities: 01 8000 180 720 Alejandra Rincón, Designer
www.bancadelasoportunidades.gov.co Ángela Ramírez, Designer

Bogotá, Colombia Laura Gutiérrez, Designer
Andrés Álvarez, Designer

SUPERINTENDENCIA FINANCIERA DE COLOMBIA
Lucía Manrique, Designer
Calle 7ª No. 4 - 49
Juan Mikán, Editor
Telephone: 307 80 42
Customer service line: 018000 120 100
www.superfinanciera.gov.co
Bogotá, Colombia Printed in Bogotá D.C. by Zetta Comunicadores

Legal notice: The following document contains a compilation and analysis of financial inclusion indicators in
Colombia, produced by the Superintendencia Financiera de Colombia and Banca de las Oportunidades. This
report is published for informational and academic purposes to learn of the current state of financial inclusion
in Colombia, with information reported by financial institutions in terms of access and usage of financial
products. From the foregoing, and taking into account that it is an interpretation that is carried out from the
information mentioned, Banca de las Oportunidades and the Superintendencia Financiera de Colombia shall
bear no liability whatsoever in regard to the content, or scope thereof or in respect to the use made by the
users of the information that is found in the Report. Printed in Bogota, Colombia July 2018.
The content of the information in this Financial Inclusion Report may be reproduced or distributed without
modifications for institutional use, exclusively. Any other use made of its content, including its distribution,
reproduction, modification, dissemination or transmission without the prior written consent of Banca de
las Oportunidades or Superintendencia Financiera de Colombia is prohibited. The modifications that are
introduced to the information shall be the responsibility of the user, always citing the authors as the source of
the information.
TABLE OF CONTENT
1 2
6 10
INTRODUCTION PROGRESS AND

CHALLENGES
5 6
112 154
ACCESS AND ACCESS AND USAGE

USAGE OF OF INSURANCE
CREDIT PRODUCTS
3 4
34 86
FINANCIAL ACCESS AND

INFRASTRUCTURE USAGE OF DEPOSIT
PRODUCTS
7
186
FINANCIAL
CONSUMER
PROTECTION
1
FINANCIAL
INCLUSION REPORT 2017
6
CHAPTER 1 | INTRODUCTION
1.
INTRODUCTION
B
anca de las Oportunidades and Su- nancial products comes from TransUnion, the
perintendencia Financiera de Colom- credit bureau, while data on dataphones co-
bia are pleased to present the seventh mes from the two low value payment networ-
report on Financial Inclusion with data up to ks, Credibanco and Redeban. The analysis
2017. This report is the result of collective was complemented with information on mu-
efforts made by the National Government to nicipal demographics, provided by the Natio-
analyze the current state of financial inclusion nal Planning Department (DNP by its Spanish
in the country. It constitutes a complete and ti- acronym), and the National Department on
mely tool to continue to implement public po- Statistics (DANE by its Spanish acronym).
licies, which will make help advance towards This report comprises six chapters:
a greater access and usage of financial servi- Advances and Challenges of Financial
ces in the country. Inclusion; Financial Infrastructure; Access
Our analysis consolidates data from credit and Usage of Deposits; Access and Usage of
institutions overseen by the Superintendencia Credit; Access and Usage of Insurance; and
Financiera, from financial credit unions over- Financial Consumer Protection. In particular,
seen by the Superintendencia de la Economía for this seventh iteration of the report, the last
Solidaria (SES), and from NGOs specialized one to be presented during the Government
on microcredit, which is reported directly to of President Juan Manuel Santos, we would
Banca de Oportunidades. Likewise, data on like to highlight some key achievements and
the number of adults and businesses with fi- remaining challenges in promoting access
7
and usage of financial services, as well as mittee and technical subcommittees to impro-
strengthening consumer financial protection ve articulation. According to The Economist,
in Colombia. the creation of the CIIF was a key milestone of
First, we strengthened the national policy 2016, as well as a crucial step in articulating
on financial inclusion by linking them to na- governmental policies on the subject.
tional development plans. We moved from in- Third, we launched the National Strategy
cluding a single goal in 2010-2014, to setting on Economic and Financial Education, which
a series of goals in 2014-2018, which were is aimed at articulating educational projects
aimed at increasing access and usage of fi- carried out by public and private sector actors,
nancial products. Currently, the National Go- following quality and objective standards. Its
vernment’s goal is to financially include 84% construction was based on international stan-
of the adult population. dards and was adjusted in accordance to the
Second, we set out to create the National challenges presented by the implementation
Strategy on Financial Inclusion, coordinating of these types of initiatives in the country. This
efforts between public entities and the priva- strategy is set to create an environment under
te sector. Within this strategy, five priorities which financial inclusion initiatives redound
on financial inclusion were established, and in adults and businesses making better deci-
the Interinstitutional Commission on Finan- sions about their finances.
cial Inclusion was created (CIIF, by its Spanish Overall, the balance is positive, and
acronym). The CIIF has oriented the regula- the Government had notable milestones
tion targeting financial inclusion, established towards the achievement of its inclusion
guidelines for developing financial inclusion goals. Not only do the availability of at least
initiatives, and created a Consultative Com- one access point in all Colombian municipa-
8
CHAPTER 1 | INTRODUCTION
lities is a reality, but also the significant re- inactive. These efforts must be aligned with
duction in the number of municipalities with the recently launched economic and financial
fragile financial coverage, which went from education strategy, which aims at boosting
34 to 3 last year. On the other hand, the pro- efforts to overcome this challenge.
portion of the population with access to at Finally, there are the challenges regarding
least one financial product stood at 80.1% innovation. The rapid technological develo-
by the end of 2017. Finally, the number of pment incorporated into financial services
adults with active savings accounts grew is becoming increasingly important and Co-
from 15.3 million in 2015 to 18.4 million in lombia has not been unaware of such pheno-
2017. These results are largely due to the menon. From the National Government, we
follow-up of the financial inclusion strategy, began to face the difficult task of balancing
which has helped prioritize projects aimed the risks associated with the entry of new pla-
at reducing barriers in the adoption of finan- yers. Such players, supported by new techno-
cial services. logies, offer innovative products and services
Some challenges persist. First, we must in- with the potential to contribute to financial in-
tensify efforts to include the 6.7 million adults clusion through the optimization of proces-
who are out of the financial system, especia- ses, reduction of costs and the improvement
lly those who live in rural areas. Second, the of customers’ experiences.
significant access gap between cities and ru- For their efforts and dedication to this re-
ral areas must be addressed. While in urban port, we would like to thank the teams at the
areas access to financial services stands at Superintendencia Financiera de Colombia: Er-
87.2%, in rural and scattered rural areas it is nesto Murillo, Maria Fernanda Tenjo, Mariana
65.1% and 54.7%, respectively. Escobar, Kelly Granados, Sara Diaz and Ya-
Likewise, initiatives to promote the usage mile Castro; and at Banca de Oportunidades:
of financial products must continue, as there Paola Arias, Daniela Londoño, Michael Bryan,
are still 3.9 million adults whose accounts are Sara Gómez and Marcela Jiménez.
Juliana Álvarez Gallego Jorge Castaño Gutiérrez

Director – Banca de las Financial Superintendent of
Oportunidades Colombia
9
2
FINANCIAL
10
CHARTER 2 | PROGRESS AND CHALLENGES
2.
PROGRESS AND
CHALLENGES
F
inancial inclusion is a relevant issue helped drive financial inclusion in recent years.
worldwide due to its potential benefits This chapter highlights the progress made in
to the economic development of the dimensions of access and use, and seeks
countries. Several studies have shown a to identify barriers and existing challenges.
positive correlation between final inclusion This analysis uses information on individuals
and economic growth, poverty reduction and businesses with financial products,
and equality. In Colombia, the National reported to Banca de las Oportunidades by the
Government has promoted public policies Colombian-based credit bureau TransUnion.
aimed at facilitating access to and usage of
financial services1. These actions, together
with efforts made by the private sector, have 1. National Financial Inclusion Strategy.
11
1 2
The financial inclusion

The number of fragile indicator (FII) stood at
Since 2015,
all Colombian financial coverage 80.1%. 27.1 million
municipalities municipalities2 went adults had access to
have access to the down from 34 to 3 financial products.
financial system. between 2016 and 2017.
3 4
Savings
13.7 million
women and 13.3
75.6% accounts
The distribution of of adults had the largest
adults with access to million men had
held deposit penetration
financial products was at least one
products. (25.2 million
homogeneous between product. adults)
women and men.
5 6
Credit cards
44% of were the
most utilized
adults had product,
access to credit followed by 935,880 businesses had
products. access to financial products. This represents
consumer
loans. a 24.5% increase relative to 2016.
7 8 About half of
Colombians with
access to the
23.2 million adults actively used their
products. This corresponds to 68.6% of financial system had
adults and 85.6% of adults with access to three or more
financial products.
products.
9 10
Access to financial
Adults aged 65 The urban-rural
products is greater
among adults aged or above had an FII FII gap is 32.5
of 73.9%, and those
26 to 40 (87.8%) percentage
who are 18 to 25
and those aged 41 to The FII drops as rurality
65 (88.3%).
years old of 53.9%.
increases. points.
2. Municipalities with 1 to 2 correspondents and no branches.
12
2.1 ACCESS TO solidation of a positive trend in their ratio,

which we refer to as the financial inclusion
FINANCIAL PRODUCTS indicator (FII). The country went from having
an FII of 73.9% in 2014 to one of 80.1%3
in 2017, an increase of 6.2 percentage points
MORE COLOMBIANS IN THE (Chart 2.1).
FINANCIAL SYSTEM
As of December 2017, 27.1 million adults

had access to at least one financial pro- 3. TransUnion’s database is dynamic. Data as of December
duct. In recent years, the percent increase in 2017 was processed in May 2018. Davivienda corrected
the number of adults with financial products the report provided to TransUnion in March 2017 on data on
has been greater than the forecasted popu- electronic deposits, which increased by two tenths the FII as
lation growth rate, which has led to the con- of December 2017 that was previously released in March.
CHART 2.1 85.0%
Evolution of the
financial inclusion 80.1%
80.0%
indicator
79.2%
75.0%
% of adults with
products in all institutions 73.9%
% of adults with financial 70.0%

products in the credit
institutions 68.6%
% of adults with active 65.0%

products in all institutions
61.8%
60.0%
55.5%
55.0%
Source: TransUnion,
50.0%
Banca de las
Oportunidades
Mar - 08
Agu - 08
Jan - 09
Jun - 09
Nov - 09
Apr - 10
Sep - 10
Feb - 11
Jul - 11
Dec - 11
May - 12
Oct - 12
Mar - 13
Agu - 13
Jan - 14
Jun - 14
Nov - 14
Apr - 15
Sep - 15
Feb - 16
Jul - 16
Dec - 16
May - 17
Oct - 17
Dec - 17
calculations
13
Credit institutions were responsible for in- dispersed rural municipalities, the FII was
cluding most of the population in the formal 65.1% and 54.7%, respectively, equivalent
financial system. In 2017, their FII stood at to 2.2 million adults with financial products
79.2% (i.e. 26.8 million adults). On the other in rural municipalities and 1.2 million adults
hand, financial credit unions overseen by the in dispersed rural municipalities.
Superintendencia de la Economía Solidaria The difference in the FII between cities
recorded an FII of 4.1%, that is, 1.4 million and dispersed rural municipalities rose by
adults. NGOs specialized in microfinance re- 32.5 percentage points, a gap similar to
ported an FII of 3.7%, or 1.3 million. Compa- the one registered in 2016. Between 2016
red to the previous year, the number of adults and 2017, the FII increased at similar ra-
holding financial products with credit institu- tes across all rurality levels. In intermediate
tions increased by 5.5%, with NGOs by 2.5% municipalities, this indicator went up by 2.9
and with financial credit unions by 1.2%. percentage points, in cities and rural muni-
In 2017, at the regional level, the highest cipalities by 2.8 points, and by 2.5 points
FII were registered in the departments of in dispersed rural municipalities.
Casanare (96.1%), Bogotá, D.C. (96.0%),
Santander (89.1%) and Risaralda (88.8%). THERE ARE NO SIGNIFICANT
The departments of La Guajira, Vichada and DIFFERENCES BY GENDER IN
Vaupés ended the year with an FII of 45%. THE ACCESS TO FINANCIAL
PRODUCTS
THE FINANCIAL INCLUSION
INDICATOR DROPS AS An analysis of gender structure of adults
RURALITY INCREASES holding financial products reveals that
50.7% are women, equivalent to 13.74 mi-
By the closing of 2017, adults with financial llion, and 49.1% are men, that is, 13.3 million
products were concentrated in the cities. In- (Chart 2.3). The gender distribution of
deed, 87.2% of people who lived in cities adults with financial products and adults
and urban agglomerations, 19.8 million, held in Colombia in 2017 is the same. Between
financial products (Chart 2.2). In intermedia- 2016 and 2017, the gender FII gap decrea-
te municipalities, the FII stood at 70.0%, re- sed by two percentage points.
presenting 3.9 million adults. In rural and
4. 0.2% of adults with financial products could not be classified by gender. Banca de las Oportunidades and TransUnion have
worked to improve identification by gender of adults with financial products and, as a result, as of 2017 share of adults not
being identified dropped significantly compared to previous years.
14
100%
CHART 2.2 87.2%
Financial inclusion 84.4% 90%
indicator by rurality
80%
70.0%
67.1%
65.1% 70%
62.3%
2016
54.7% 60%
2017 52.2%
50%
40%
30%
20%
Source: TransUnion, Banca 10%

de las Oportunidades
calculations 0%
Dispersed rural Rural Intermediate Cities and urban

municipalities municipalities municipalities agglomerations
0.2% 0.2%
100%
CHART 2.3
Distribution of
adults with financial
products by gender 80%
52.3% 50.7%
60%
Men
Women
Undetermined
40%
47.6% 49.1%
20%
Source: TransUnion, Banca

calculations 0%
2016 2017
15
MORE FINANCIAL INCLUSION FOR In this period, the number of financially included
THE YOUTH adults of other age groups have also increased,
although slightly, at a rate near 2.4%5.
In 2017, most adults with financial products, 11.1 When comparing the number of adults hol-
million, were 41-65 years old. The second age ding at least one financial product, in 2017,
group with the highest participation level was that adults between the ages of 26 and 40, and
of adults between the ages of 26 and 40, or 9.5 between 41 and 65 showed the highest FII:
millon, followed by young adults aged 18-25, with 87.8% and 88.3%, respectively. Adults aged
a population of 3.7 million, and people over 65, 65 and over had an indicator of 73.9%, while
or 2.6 million (Chart 2.4). The number of adults youth between the ages of 18 and 25 showed
with financial products has increased in all age an indicator of 53.9%. Nevertheless, even if the
groups over the past years. Young adults aged number of included young adults between the
18-25 have shown the highest average percen- ages 18 and 25 have increased in recent years,
tage increase: 20.8% between 2014 and 2017. half of that group is yet to be included.
5 Between 2016 and 2017, the increase in adults between the ages of 26 and 40 was 3.3%; adults between the ages of 41
and 65, 4.3%; and 9.4% for people over 65.
12
10.6
11.1 CHART 2.4
10.6 Distribution of
10.4
10
adults with financial
9.5
9.1 9.2 products by age
8.8
groups
8
2014
2015
Million
6 2016
2017
4 3.4 3.7
2.8 2.6
2.5 2.5 2.4
2.1
2

0 calculations
18 to 25 26 to 40 41 to 65 over 65
16
75.6% OF ADULTS IN THE electronic deposit. This represents an increase of

COUNTRY HAVE AT LEAST ONE nearly two fifths compared to the preceding year.
DEPOSIT PRODUCT6 On the other hand, electronic savings
accounts were the third deposit product with
In 2017, 25.6 million Colombians had at least the highest number of adults holding them
one deposit product. These adults had the fo- (approximately, 3 million people7), followed by
llowing regional distribution: 72.9% lived in cities current accounts. However, the latter showed
and urban agglomerations, 14.3% in interme- an increase of 0.3% in the past year, and have
diate municipalities, 8.1% in rural municipalities, remained constant in recent years, about 1.7
and 4.6% in dispersed rural municipalities. million people.
Savings accounts were the product with Other savings products such as term de-
the highest penetration among Colombians. posits (CDT, according to the acronym used
In 2017, 25.2 million adults had at least one in Colombia) exhibited an increase of 0.8%
savings account, that is, 74.6% of the adult between 2016 and 2017. As of December last
population in the country (Chart 2.5). The year, 775,896 adults had CDTs. On the other
number of adults with savings accounts in- hand, simplified-procedure savings accounts8
creased by 1.6 m, or 6.9%, between 2016 and remained almost constant (103,287 adults).
2017. It was found that, by type of institution,
in 2017, 25.16 million adults held their savings 6 Computed using the number adults identified by their na-
accounts with credit institutions, and 254,377 tional identification numbers.
with financial credit unions overseen by SES. 7. The number of electronic savings accounts are underre-
Electronic deposits were the second depo- ported at risk assessment centers.
sit product with the highest penetration. In to- 8. The number of simplified-procedure savings accounts are
tal, nearly 4.2 million adults had, by late 2017, an underreported to credit bureaus.
* Electronic savings account (CAE, for its Spanish acronym)

** Electronic deposits (DE, for its Spanish acronym)
30
CHART 2.5 25.2
23.6
Number of adults 23.0 25
with deposit 21.8
products 20
Million
2014 15
2015
2016 10
2017
2.8 3.0 2.8 4.2
1.8 1.7 5
2.7 2.8 2.2 3.0 0.6 0.8 1.7 1.7
Source: TransUnion, Banca 0.5 0.8
de las Oportunidades 0
calculations Savings CAE* DE** Other Current
account savings accounts
products
17
The number of people with deposit products Credit products with the lowest penetration
have increased over the past years. Between level were mortgage loans and commercial
2014 and 2017, the number of people with sa- loans. As of December 2017, roughly 1.1 mi-
vings accounts increased by 3.4 million, for an llion adults had at least one mortgage loan
increase of 15.5%; with the number of electro- granted by credit institutions or financial credit
nic deposits standing at 2.0 million, for an increa- unions overseen by the Superintendencia de
se of nearly 90%. Adults with electronic savings la Economía Solidaria. This number decreased
accounts have showed a positive but slight by 21,101 adults, or 1.9%, compared to 2016.
increase compared to traditional savings accounts The number of adults with credit products in-
and electronic deposits. Between 2014 and 2017, creased has increased over the past years, par-
the number of adults with electronic savings ticularly in terms of credit cards and consumer
accounts went up by 268,919, or 9.9%. loans, which have had the highest penetration
in the country over the last four years. Between
44% OF ADULTS IN THE 2014 and 2017, the number of adults with cre-
COUNTRY HAVE AT LEAST ONE dit cards increased by 1.8 million, or 24.5%; with
CREDIT PRODUCT9 consumer loans by 1.4 million, or 20.9%; with mi-
crocredits by 280,082, or 9.3%; and with mort-
By the closing of 2017, almost 15 million people gage loans by 118,135, or 12.1%.
had a credit product. Out of these, 78.2% lived in
cities and urban agglomerations, 11.9% in inter- ADULTS ENTERING THE FINANCIAL
mediate municipalities, 6.4% in rural municipali- SYSTEM FOR THE FIRST TIME
ties, and 3.5% in dispersed rural municipalities.
Credit cards10 were the most used product, In 2017, 1.1 million adults entered the financial
followed by consumer loans and microcredits. As system for the first time. This is an increase of
of December 2017, 9.2 million adults had at least 11% compared to 2016, when 999,187 peo-
one active credit card, an increase of 372,048 or ple entered the financial system. The main ga-
4.2%, compared to 2016 (Chart 2.6). Credit cards teway products to the financial system in 2017
are only offered by credit institutions. were savings accounts (77.8% out of the total),
In addition, almost 8 million adults held followed by microcredits (7.2%), credit cards
a consumer loan. The number of adults (6.9%), consumer loans (4.1%) and term sa-
with consumer loans increased by 382,792 vings products (2.5%) (Chart 2.7). In recent
(5.0%) compared to 2016. On the other hand, years, savings accounts have been the main
approximately 3.3 million adults had a microfinancial product through which adults in the
credit, an increase of 253,564 (8.4%) compa- country have had access to the formal finan-
red to 2016. Adults held microcredits mostly cial system for the first time.
with credit institutions (2.6 million adults), fo-
llowed by NGOs specialized in microfinance
(801,311 people) and financial credit unions 9. Computed using the number of adults identified by their
overseen by the Superintendencia de la Eco- national identification numbers.
nomía Solidaria (154,713 adults). 10. This is a kind of consumer loan.
18
CHART 2.6 9.2

10
Number of adults 8.8

9
with credit products 8.2
8.0
7.6
7.4 8
7.2
2014 6.6 7
2015
2016 6
Million
2017
5
3.1 3.3 4
3.0 3.0
1.1
1.1 1.1 2
1.0 1.1 0.8
0.7 0.8
Source: TransUnion, Banca 1
0
calculations
Microcredits Consumer Credit cards Mortgage Commercial
loans loans loans
CHART 2.7
0.2%
0.4%
0.4%
Percent of adults
entering the financial 4.0%
0.06%
7.1%
0.2% 0.1% 100%
0.08%
6.9%
2.8%
0.7%
system by entry product 3.7% 4.1%

5.9% 90%
%
0.8%
0.8%
0.2%
6.7% 7.2%
09
0.9%
Savings account
0.
10.8% 0.1%
2.9% 2.5% 80%
CAE 0.07%
DE
70%
Other savings products
Current accounts 60%
Microcredits
50%
Consumer loans
Credit cards
74.4% 77.6% 77.8% 40%
Mortgage loans
Commercial loans
30%
CATS*
20%
Source: TransUnion, Banca de las
Oportunidades calculations
10%
*Simplified-procedure savings account
(CATS, for its Spanish acronym) 0%
2015 2016 2017
19
MORE BUSINESSES IN THE FORMAL

FINANCIAL SYSTEM11
By the end of 2017, 935,880 businesses

held at least one formal financial product.
This constitutes an increase of 184,029 bu-
sinesses, or 24.5%, compared to 2016. The
number of businesses holding financial pro-
ducts has increased over the past years.
In December 2017, most Colombian busi-
nesses (934,915) with at least one formal fi-
nancial product held such products with credit
institutions; and, in a smaller magnitude, with
financial credit unions overseen by the Super-
intendencia de la Economía Solidaria (4,265)
and NGOs specialized in microfinance (638).
The financial product with the highest pe-
netration were savings account. By the end
of the year, 641,227 businesses held this pro-
duct, an increase of 27.9% compared to 2016.
In terms of deposit products, they were fo-
llowed by current accounts (483,842) and
other savings products (14,698) (Chart 2.8).
Commercial loans were the credit product
with the highest penetration level among Co-
lombian businesses (231,534), followed by
consumer loans (94,576), credit cards (91,101)
and microcredits (14,639) (Chart 2.9). Be-
tween 2016 and 2017, the number of adults
with consumer loans increased by 12.7%, and
with microcredits by 10.8%.
11. This corresponds to businesses with NIT [Tax Identifica-

tion Number, in Spanish].
20
700
CHART 2.8 641.2
Number of
600
businesses with
deposit products 501.4
476.0 483.8
500
421.0
439.4
420.5
2014 401.2
400
2015
Thousand
2016
2017 300
200
100
15.2
10.7 11.3 14.7
Savings Other savings Current
calculations
account products accounts
CHART 2.9 231.5

250
Number of 221.1
businesses with
199.7
credit products 200
186.4
2014
2015 150
Thousand
2016
2017
94.6
83.9 91.1 100
82.1 82.6
77.3
65.9
61.1
50
13.2
Source: TransUnion, Banca 10.5 14.6
de las Oportunidades 9.2
calculations
0
Microcredits Consumer Credit cards Commercial
loans loans
21
2.2 USAGE OF D.C. (88.5%), Huila (87.7%) and Bolívar

(85.6%%). On the other hand, the depart-
FINANCIAL PRODUCTS ments of Arauca, Vichada and Vaupés had
an activity level under 80%.
THE USE OF FINANCIAL Of the 19.8 million adults financially in-
PRODUCTS MUST CONTINUE cluded in cities and urban agglomerations,
TO BE ENCOURAGED 86.3%, or 17 million, used or had active
products. For intermediate municipalities,
In 2017, 23.2 million adults used or had the activity level was lower (83.4%). This
their products 12 active, that is, 68.6% of magnitude is similar to in the one observed
the adult population (Chart 2.10). Although in rural and dispersed rural municipalities,
the number of adults with active products where the activity level stood at 83.8%.
increased by 1.1 m between 2016 and 2017, Compared to 2016, the activity level in-
the activity level, measured as a percent of creased in dispersed rural municipalities by
adults with financial products actively used 1.1 percentage points, and 0.5 percentage
over the total number of adults with pro- points in rural municipalities. The activity
ducts, has remained constant at 85%. level in cities and agglomerations decrea-
The activity level 13 of adults varies by sed by 0.3 points.
type of institution. For instance, 85.1% of
adults with financial products held with THERE ARE NO DIFFERENCES
credit institutions actively used them, whi- BY GENDER IN THE USAGE OF
le this ratio was 63.5% and 65.4% among FINANCIAL PRODUCTS
financial credit unions and NGOs specia-
lized in microfinance, respectively (Chart In 2017, 85.6% of women and men with fi-
2.11). The activity level among credit insti- nancial products actively used them (Chart
tutions have remained close to 85% since 2.12). In recent years, the level of activi-
2015,whilethis indicator in financial credit ty for men and women has risen slightly,
unions overseen by the Superintendencia but was greater among the former. Speci-
de la Economía Solidaria decreased by one fically, the activity level for men went from
percentage point between 2015 and 2017. 82.8%to 85.6% between 2014 and 2017,
Regionally, in 2017, the four depart- and, for women, from 83.0% to 85.6%. This
ments with the highest activity level were has helped close the small gap seen at the
as follows: Antioquia (88.5%), Bogotá existing level of activity by gender.
12. Active adults are adults with at least one active product in the financial system. A product is considered active when it has
been used at least once over the past 6 months.
13. Ratio of active adults to the total number of adults with products.
22
30
CHART 2.10 27.1
Number of total and 25.0
25.7
active adults holding 23.7

23.2 25
at least one financial 21.1

22.0
product 19.9
20
Million
15
Total
Active
10

2014 2015 2016 2017
calculations
100%
85.3%
CHART 2.11
85.1%
84.2%
83.2%
Ratio of active 90%
products to total
80%
products by type of
65.8%
65.4%
64.4%
64.2%
63.8%
63.5%
institution
59.7%
70%
60%
46.3%
50%
2014 40%
2015
2016 30%
2017
20%
Source: TransUnion, Banca 10%
calculations 0%
Credit Institution Financial credit unions NGOs specialized in
overseen by the SES microfinance
23
90%
85.9%
85.6%
85.6%
CHART 2.12
85.5%
Distribution of adults
84.1%
80%
83.7%
83.0% with active financial
82.8%
70% product by gender
60%
50%
40%
Men
30%
Women
20%
10%
0% Source: TransUnion, Banca

2014 2015 2016 2017
calculations
89.8%
100%
89.4%
88.8%
CHART 2.13
87.8%
85.5%
86.0%
85.9%
85.0%
85.0%
85.1%
84.1%
82.9%
90% Ratio of active

adults to the total
73.1%
72.8%
70.7%
number of adults by
70.1%
80%
age range
70%
60%
50%
40%
2014
30% 2015
2016
20% 2017
10% Source: TransUnion, Banca

0% calculations
18 to 25 26 to 40 41 to 65 Over 65
24
USAGE OF PRODUCTS IS LOWER number of adults with that product is close

IN SENIOR CITIZENS to 2 (i.e., on average, Colombians hold
two savings accounts). When this ratio is
Adults between the ages of 26 and 40 had calculated relative to the number of adults
the highest activity level (89.4%) (Chart with active savings accounts, it is inferred
2.13). They were followed by adults between that Colombians have nearly three accounts
the ages of 18 and 25 (85.9%) and those on average.
41 to 65 years old (85.0%). Adults over 65 Nonetheless, the deposit products with
years old had the lowest ratio (73.1%). The the highest activity level were: electronic
activity level has seen no significant chan- savings accounts, simplified-procedure sa-
ges by age groups in recent years. This re- vings accounts and electronic deposits.
iterates the importance of continuing to More than 90% of adults holding these
encourage the usage of financial products, accounts used them (Chart 2.15). On the
particular among adults over 65 years old. other hand, 85% of adults with current ac-
counts had them active. The activity levels
USAGE OF DEPOSIT PRODUCTS 14 of deposit products have remained at simi-
lar levels in the past years.
Of the 25.6 million adults with at least one
deposit product, almost 19.6 million had FINANCIAL DEPTH
them active. This redounds in an activity HAS IMPROVED
level of 76.6%. In cities, this rate stood at
77.1%, and at 75.3% for intermediate, rural, Formal financial inclusion depth characterizes
and dispersed rural municipalities. the diversity of financial services portfolios.
Of the 25.2 million adults with savings This diversity is important to encourage the
accounts, 18.4 million actively used their pro- usage of comprehensive financial services.
ducts (Chart 2.14). This number increased by In this regard, about half of adults with
1.4 million, or 8.4%, compared to 2016. The financial products had one or two products
rate between the number of adults with acti- by late 2017 (31.7% of had one, and 23.4%
ve savings accounts and the total number of had two). In addition, 15.2% and 9.9% of
savings accounts grew 0.9 percentage points adults had a portfolio of three and four pro-
between 2016 and 2017. ducts, respectively. A portfolio of more than
The ratio of total number of savings four products was managed by 19.8% of
accounts 15 held by adults relative to the adults (Chart 2.16).
14. Computed using the adults identified by their national identification numbers.
15. Savings accounts of individuals.
25
30
CHART 2.14
Number of adults
with total and active
25.2
25 savings accounts
23.6
23.0
21.8
Total
20 Active
18.4
17.0
16.5
15.4
Million
15
10

calculations
0
2014 2015 2016 2017
Compared to the previous year, adults with USAGE OF FINANCIAL PRODUCTS

a financial product displayed an increase of BY BUSINESSES NEEDS TO
3.9%. Likewise, the number of individuals with CONTINUE TO IMPROVE
a portfolio of two financial products increased
by 1.9%. However adults with three or more Of the total number of businesses with fi-
financial products exhibited a slight contrac- nancial products, 72.1% had some active fi-
tion between 2016 and 2017. This might be nancial product (675,143 firms) (Chart 2.17),
correlated to the access to new products that which represents an increase of 20.2% be-
are no longer used or are canceled over time. tween 2016 and 2017 (113,463 businesses).
26
CHART 2.15
96.6%
96.6%
96.5%
96.5%
95.2%
95.0%
Share of adults
94.2%
100%
with active deposit
89.5%
89.4%
87.3%
87.5%
86.4%
products as a
proportion of
adults wth financial
73.1%
72.2%
71.7%
80%
products
70.4%
2014 60%
2015
2016
2017
40%
20%

calculations 0%
Savings CAE CATS DE

account
Although the number of businesses with some Of the 935 thousand businesses with at least
active financial products have increased in re- one financial product held with credit institu-
cent years, this growth has been slower than tions, 674 thousand used them actively, which
that of the number of businesses with financial yields an activity level of 72.1%. On the other
products. This has resulted in a drop in the hand, of the 4,265 businesses holding a finan-
activity level of businesses, which went from cial product with financial credit unions over-
74.7% in 2016 to 72.1% in 2017. The activity seen by the Superintendencia de la Economía
level for businesses is lower than the one ob- Solidaria, 2,568 had them active, for an acti-
served for adults. vity level of 60.2%.
27
8
CHART 2.16
7.0
6.7
Adults with
6.6
7 6.5 financial products
by portfolio type
6
5.1
5.0 5.0
4.9
5
4.7 2014
4.3
4.2 2015
Million
4 3.7 2016
3.4 3.3
3.2 2017
2.9
3
2.3 2.3 2.2
1.8
2
1
0 calculations
1 product 2 products 3 products 4 products Over 4
products
1000
935.9
CHART 2.17
900 Number of
businesses with
800
751.9 financial products by
727.5
680.9
activity level
700
675.1
600
547.0 561.7
506.1
Thousand
Total
500
Activity level
400
300
200
100 Source: TransUnion, Banca

0 calculations
2014 2015 2016 2017
28
29
REASONS WHY
COLOMBIANS SAVE
AND GET INDEBTED
WHAT DO PEOPLE
SAVE FOR?
WHAT DO MICRO-
ENTREPRENEURS
SAVE FOR?
16% of the surveyed Colombians for

the World Bank 2017 Global Findex,
said that their savings purposes were According to the Gran Encuesta Mi-
to start, run or expand a business or croempresarial [Big Micro-Business
farm. These aspects were recurrent Survey] of Anif [acronym in Spanish for
among the population in the workforce National Financial Institutions Associa-
and with education equivalent to or be- tion] (2018), most micro-entrepreneurs
low high school level, both with a pro- said that their savings purposes were
portion of 20% of answers. to cover their business expenses when
On the other hand, 13% of respon- revenues were not favorable (40.6%
dents said they saved for their old age. on average). In addition, savings are
These answers were more recurrently gi- used to get supplies during high-reve-
ven by men (16%) compared to women nue seasons (20.0%), expand their bu-
(11%), and those who were part of the siness (20.0%), pay company-related
workforce (15%). Similarly, 20% of res- debts (16.3%), staff or home expen-
pondents said they saved for education ses (14.3%), and start another business
purposes. If materialized, these reasons (6.6%). Most of them are correlated to
may help increase households’ welfare the operational business concept; there-
levels as they are crucial to building fi- fore, they might have a positive influence
nancial resilience. on the company’s financial sustainability.
30
WHAT DO MICRO-
ENTREPRENEURS GET
INTO DEBT FOR?
WHAT DO
PEOPLE GET INTO According to the Gran Encuesta Mi-
DEBT FOR? croempresarial of Anif 2017, loans provi-
ded to micro-entrepreneurs were mostly
used to generate liquidity. Indeed, buying
raw materials, supplies, stock and other
operating or operation expense (77%
According to the 2017 Global Findex, industry, 87% commerce, and 56%
41% of the surveyed population had a services) were the most common use
loan during the past year (vs. 43% in specified by respondents. On the other
2014). 10% of respondents got indebted hand, less than 30% of respondents re-
for health and education purposes. On modeled or made improvements to ex-
the other hand, 7% of respondents said pand their productive capacity, and less
to have got indebted to run or expand than 13% of businessmen used their
their business or firm. The foregoing re- loans to buy or lease machinery.
asons to access to loans might certain- Loans used for investment have the
ly have a positive impact on welfare of potential to allow businesses to expand
people and their family members, as on their growth opportunities, and in-
they make it easier for them to respond crease their productivity through the use
to unexpected events related to health of new technologies, innovation, develo-
conditions, increase human capital levels pment of new products or services, mar-
and generate productive investment. ket expansion, among others.
31
2.3 MAIN CHALLENGES the country stood at 80.1% in 2017, the FII for
young adults between the ages of 18 and 25
INCLUDE THE UNDERBANKED IN reached 53.9%. In this regard, it is important
THE FINANCIAL SYSTEM to inquire into the reasons why the youth are
not accessing to financial products.
6.7 million Colombian adults need to be inclu-
ded in the financial system (that is, 19.8% of INCREASE THE USAGE OF
adults in the country). According to the 2017 FINANCIAL PRODUCTS
Global Findex, the main reasons given by res-
pondents for not having an account were re- As referred to above, it is relevant to conti-
lated to the lack of funds (67%), management nue to encourage the usage of financial pro-
costs (59%), lack of required documentation ducts by both individuals and businesses.
(28%) and physical distance to financial institu- This is due to the fact that the share of active
tion branches (20%). Only 3% of respondents adults in the total number of adults with finan-
said that they did not have an account because cial products was equal to 85.6%. At the le-
they did not need any financial services. This vel of businesses, such share reached 72.1%.
highlights the importance of reducing other ba- It is important to explore the new barriers16
rriers to financial inclusion (Chart 2.18). to the usage of products currently offered on
Particularly, there is a challenge to inclu- the market. In addition, it is important to con-
de individuals who live in rural areas, as well tinuing to develop strategies associated with
as the youths of the country. The FII is signifi- financial education and design of appropriate
cantly lower in rural municipalities compared products with the population’s and busines-
to cities. In rural and dispersed rural muni- ses’ needs.
cipalities, 2.2 and 1.2 million adults, respec-
tively, had access to financial products. The PROMOTE FINANCIAL LITERACY
FII stood at 65.1% in rural municipalities and
54.7% in dispersed rural municipalities. The The National Financial Inclusion Strategy re-
difference in the FII between cities and dis- cognizes the relevance of Financial Literacy,
persed rural municipalities went up to 32.5 reason why it has been prioritized as one of
percentage points. Consequently, it is key to the work fronts of the strategy, recommen-
reduce access barriers to the financial sys- ding the preparation and implementation of
tem in rural municipalities and dispersed rural the National Financial Inclusion Strategy. In
municipalities. Finally, this gap has remained this regard, one of the greatest achievements
constant in the past years. of 2017 was to prepare and release the strate-
Likewise and despite the increase recorded gy document, which results from the effort of
over the past years in the number of youths
between the ages of 18 and 25 holding some
financial product, the challenge is to include 16. The National Financial Inclusion strategy in Colombia
almost half of the population without access identifies the main suggested barriers and lines of action
to the formal financial system. While the FII of and instruments.
32
100%
CHART 2.18
Barriers for 90%
accessing the
financial system 80%
67.0%
70%
59.0%
60%
50%
40%
28.0%
30%
Source: Global Findex, 20.0%
2017
20%
10%
0%
Insufficient High financial Lack of necessary Distance

funds cost documentation from financial
institutions
various entities composing the National Admi- challenge is still to increasingly expand arti-
nistrative System for Economic and Financial culation in entities and implement suggested
Education and the Cross-Sector Commission actions to expand Colombians’ knowledge,
on Economic and Financial Education17. abilities and skills so they can get to better
Even if having this roadmap for each life manage their personal finance, manage risks
stage (formal education, active stage, vulne- they may encounter, and make informed de-
rable population and micro-entrepreneurship, cisions –an aspect that has been developed
and provision for old age) is a first step, the ever since the strategy was launched.
17. Decree 457 of 2014, an opportunity to generate guidelines, work methodologies and management and coordination
mechanisms among the various public and private entities relating to public policy on economic and financial educa-
tion. It is composed of 8 sub-commissions, to wit: i) technical, ii) population in formal education, iii) population in active
productive stage, iv) vulnerable population, v) micro-entrepreneurs, vi) provision for retirement and protection for old
age, vii) measurement and assessment, and viii) consultative sub-commission. The latter as a space for articulation of
the Cross-Sector Commission on Economic and Financial Education with the private sector.
33
3
FINANCIAL
34
CHAPTER 3 | FINANCIAL INFRASTRUCTURE
3.
FINANCIAL
INFRASTRUCTURE
T
his chapter analyses financial coverage at the national, department and municipal le-
in the country using information of finan- vels. The number and amount of transactions
cial institutions’ access points and their are analyzed by type of channel. In addition, the
transactionality. Access points include bank chapter deals with transactional services (e.g.,
branches, bank correspondents, POS termi- debit and credit cards) indicators, the number
nals, ATMs and mobile agents. This chap- of financial transactions per 100,000 adults, and
ter describes the evolution of access points access to Internet and mobile phones.
35
MAIN FINDINGS: FINANCIAL COVERAGE AND TRANSACTIONS
1
There is at least one In 2017, there
were 532,138
access point to
the financial system
access points in Municipal
the country.
across all Colombian
municipalities since
coverage
early 2015.
100% Since 2015
3
Fragile financial coverage Fragile coverage
municipalities (those with 1 or municipalities
34 3
2 correspondents and no bank
branches) went from 34 in 2016
to 3 by late 2017.
(2016) (2017)
5 2017 % amount 2016 2017
#5,455 47.1% 43.2%

Million Bank
Bank branches channeled most funds branches
from operations in the financial system. $7,209 32.8% 35.5%
However, the Internet registered trillion
the largest volume of operations. Internet
7
Most
Banks Financing Financial creditunions
transactions $7.166 companies overseen by Superintendencia
were Trillions $32 Financiera de Colombia (SFC)
completed at (99.4%) trillion $11
(0.4%) trillion
banks. (0.2%)
9
ACH $10.1
The largest share on The amount million.
average transacted amounts average

of the
corresponded to the ACH
channel, with 42%, followed
transactions
of ACH, 91% Internet $6.4
million.
by the Internet with 26%, and Internet and
bank branches with 23%. branches
Bank
represents. $5.6
branches million.
36
2 Between 2016 and 2017, the number

Points of
of points of access increased by
10.5%, that is 50,471 more. This
access 481,667
2016
increase is explained by the behavior
of bank correspondents and POS points of
terminals, which increased 11.5% access 532,138
and 10.7%, respectively. 2017
4
By the end of 2017, Colombia had
105,104 bank correspondents
distributed as follows: 99.8% 2017
(104,918 points) with credit institutions
and 0.2% (186) with financial credit 105,104
unions overseen by Superintendencia
de la Economía Solidaria (SES).
6
Mobile phone transactions had 2016 2017
the highest growth rate between Number

197 331 67.6%
2016 and 2017, increasing in (million)
number by 67.6% and in

amount by 71.0%.
Amount
mobile phones (trillion) $6 $11 71.0%
8
Financial transfers
Payments
Out of all transactions made in the 34.8%
35.5%
financial system, in terms of transacted
amount, the most frequent were Internacional
Number
payments and transfers, representing transactions
35% on average ($5,071 trillion out 3.10%
of the total). deposits Withdrawals

13.2% 13.4%
10
On average, every 2016 2017
adult conducted 86 Virtual Virtual
transactions transactions
virtual transactions
annually. 75 86
37
3.1. FINANCIAL ATMs, on the other hand, showed a modera-

te increase, 0.9% and 3.2%, respectively, in
COVERAGE ANALYSIS the past year. Since 2015, bank branches and
After Colombia reached full coverage across ATMs have had similar annual growth rates.
its municipalities1 in 2015, capillarity of finan- The increase in the number of access
cial institutions has continued to increase. The points has helped improve the capillarity of
number of access points in the country have financial institutions, reaching higher levels of
increased in the last three years, both in ab- coverage in terms of the population and na-
solute terms and relative to the size of the po- tional territory. In 2017, Colombia had 1,573.8
pulation and national territory. access points per 100,000 adults and 554.5
By the end of 2017, financial institutions access points per 1,000 km2. Both indicators
in Colombia had 532,138 access points dis- have increased in the last three years. In par-
tributed as follows: 403,512 were POS termi- ticular, compared to 2016, the demographic
nals (75.8%), 105,104 bank correspondents coverage indicator went up 126 points, and
(19.8%), 15,709 ATMs (3.0%) and 7,813 bank the geographic coverage indicator increased
branches (1.4%)2. The share of the different by 52 points.
access points has remained almost the same Despite this progress, the gap between ur-
in the last three years (Chart 3.1). ban and rural coverage remains3. In 2017, ci-
Between 2016 and 2017, the number of ties and urban agglomerations, where 67.0%
access points increased by 10.5%, or 50,547 of adult population resides, concentrated
additional points. This increase is explained 88.5% of access points. On the other hand,
by the behavior of bank correspondents and rural and dispersed rural municipalities, whe-
POS terminals, which increased by 11.5% re 16.6% of Colombian population lives, had
and 10.7%, respectively. Bank branches and 4.1% of access points (Chart 3.2).
1. According to DANE [National Administrative Department of Statistics, for its acronyms in Spanish], there are 1,102
municipalities and 20 departamental townships.
2. Access points exclude mobile financial agents, since such data is only collected on 23 NGOs specialized in microfinance.
3. Analysis by rurality levels exclude information on ATMs, collected at a national level.
4. Data by rurality level on POS terminals corresponds directly to data reported by Low Value Networks (CredibanCo
and Redeban).
38
CHART 3.1 446,521 432,352 481,591 532,138

600,000
Evolution of the
number of financial 15,709
500,000
access points by type 15,227
of access points 14,424
14,817
400,000
Branches
Correspondents
300,000
POS terminals 328,774 317,204 364,358 403,512
ATMs
200,000
Source: Superintendencia
Financiera de Colombia,
Superintendencia de 100,000
la Economía Solidaria, 95,730 92,627 94,263 105,104
and NGOs specialized in
microfinance, Banca de las
Oportunidades calculations. 7,593 7,704 7,743 7,813
0
2014 2015 2016 2017
33,812,304 7,813 105,104 2,354 388,757

CHART 3.2
Distribution of
0.6%
6.0%
6.7% 4.2% 3.9% 5.1%
access points by 100%
rurality4 in 2017 1.6%

7.6% 6.6%
9.9% 12.5%
Cities and urban agglomerations 12.0%
15.7% 80%
Intermediate municipalities 16.4%
Rural municipalities
31.4%
Dispersed rural municipalities
60%
Source: DANE, DNP

[National Planning
Department, in Spanish], 40%
Superintendencia
Superintendencia de 67.0% 72.5% 77.5% 51.0% 91.8%
la Economía Solidaria, 20%
and NGOs specialized
in microfinance, Banca
calculations. 0%
Population Branches Correspondents Mobile agents POS
terminals
39
FINANCIAL sed rural municipalities had a share of 11.8%

INSTITUTIONS BRANCHES5 (921). Despite the urban-rural gap, between
2016 and 2017 the number of branches in in-
Financial institutions had 7,813 branches in termediate, rural and dispersed rural munici-
2017, distributed as follows: 6,391 (81.8%) be- palities increased by 4.8%, while the number
longed to credit institutions6, 863 (11.0%) to of branches in cities and urban agglomera-
financial credit unions overseen by Superinten- tions dropped by 0.4% (Chart 3.4). It is also
dencia de la Economía Solidaria, and 559 (7.2%) worth highlighting that out of the 921 bran-
by NGOs specialized in microfinance (Chart 3.3). ches available in rural and dispersed rural
As referenced above, the number of bran- municipalities, 435 branches, or 47.2%, be-
ches had a moderate increase in the last three longed to Banco Agrario de Colombia.
years, about 0.9% annually. As a result, co- In 2017, there was branch presence in all
verage in terms of population and national te- of the country’s departments. Bogota, D.C.,
rritory has remained constant, at around 23 Antioquia, Valle del Cauca, Bogotá, and Cun-
branches per 100,000 adults and 8 per 1,000 dinamarca were the top five departments with
km, respectively. It is worth mentioning that the highest number of bank branches, roughly
even if between 2016 and 2017 the total num- 58.9% of branches in the country. However,
ber of financial institution branches increased, the top five departments with the highest de-
this was not the case for banks7. In this re- mographic coverage indicator were Boyacá,
gard, bank branches closing was among the Guainía, Santander, Casanare, and Amazo-
largest banks, and was mostly found in the nas, all of which had over 30 branches per
main cities of the country. 100,000 adults (Annex 1). On the other hand,
Branches were mostly found in cities and 885 municipalities (out of 1,102) had bank
intermediate municipalities, with a share of branches. The 13 largest cities in the country
72.5% (5,667) and 15.7% (1,225), respec- in terms of population concentrated 50% of
tively. On the other hand, rural and disper- total branches (Annex 2).
5. Information on bank branches comes from Form 322 of Superintendencia Financiera de Colombia. Historic series have
been homogenized based of this form. Previous versions of this Report used Form 398, replaced by Form 534. The lat-
ter discontinued the measure of the number of branches.
6. In 2017, the distribution of the number of credit institution branches were as follows: 5,722 banks, 453 financing com-
panies, 10 financial corporation, and 206 financial credit unions overseen by SFC and Superintendencia de la Economía
Solidaria (SES).
7. The total number of bank branches went down from 5,812 in 2016 to 5,722 in 2017.
40
7,593 7,704 7,743 7,813

CHART 3.3
Evolution of the 8,000
number of branches 565

437 444 559
by type of institution 807 827

7,000
770 863
6,000
Credit Institutions
Financial credit unions
5,000
overseen by SES
NGO
4,000
6,258 6,460 6,472 6,391
3,000
Superintendencia de 2,000
la Economía Solidaria,
1,000
calculations. 0
2014 2015 2016 2017
CHART 3.4 8,000

Evolution of the
309 310 328
number of branches 304
7,000
575 569 593
by rurality level 580
1,084 1,119 1,162 1,225 6,000

Cities and urban agglomerations
Intermediate municipalities
Rural municipalities 5,000
Dispersed rural municipalities

4,000
Source: DANE, DNP
[National Planning
Department, in Spanish], 5,625 5,701 5,702 5,667 3,000
Superintendencia
2,000
Superintendencia de
1,000
calculations. 0
2014 2015 2016 2017
41
BANK CORRESPONDENTS8 In 2017, correspondents operated in all of

the country’s departments. The top five de-
In 2017, Colombia had 105,104 bank co- partments with the highest number of corres-
rrespondents. Out of these, 99.8% (104,918 pondents were Bogotá D.C. (30.198), Valle
points) belonged to credit institutions9 and del Cauca (11.777), Antioquia (9.897), Cun-
0.2% (186) to financial credit unions (Chart dinamarca (6.790) and Atlántico (5.496), con-
3.5). Between 2016 and 2017, the number of centrating roughly 61.1% of correspondents
bank correspondents increased by 11.5%, in the country. However, the top five depart-
which is equivalent to 10,841 additional ments with the highest demographic coverage
points. This increase redounded in better co- indicator were Bogotá D.C., Casanare, Meta,
verage indicators throughout the last year, Santander and Cundinamarca, all of which
which went from 283.4 to 310.8 bank corres- had over 350 correspondents per 100,000
pondents per 100,000 adults, and from 98.3 adults (Annex 3).
to 109.5 bank correspondents per 1,000 km2. As to municipalities, in 2017, all 1,102
Just like branches, correspondents were municipalities had correspondents. The
concentrated in cities and urban agglomera- 13 largest cities had nearly 55.4% of co-
tions. In fact, in 2017, 77.5% (81,412) of correspondents in the country. (Annex 4). In
rrespondents were located in cities, 12.0% addition, the number of fragile-covera-
(12.638) in intermediate municipalities, and ge municipalities (i.e., those with one or
10.5% (11,054) in rural and dispersed rural two correspondents and no branches pre-
municipalities (Chart 3.6)10. The location of sence) went from 34 in 2016 to 3 munici-
almost all financing companies’ and finan- palities by the end of 2017 (specifically,
cial credit unions’’ correspondents were ci- Murindó, Antioquia; Río Iró, Chocó, and
ties and urban agglomerations. Jordán, Santander).
8. Bank correspondents are commercial establishments that provide financial services in the name of a financial service pro-
vider, thus becoming formal financial system access points. Data included in this section specifies the number of bank
correspondents reported by every institution overseen by the Financial Superintendence of Colombia and Superinten-
dencia de la Economía Solidaria.
9. The distribution of credit institution correspondents were as follows: 100,449 bank correspondents, 4,327 financing com-
panies’ correspondents, and 56 financial cooperative
10. Institutions with the largest presence in rural municipalities were Banco de Occidente (1,738), followed by Bancolombia
(1,516) and Banco Agrario (957).
42
95,730 92,627 94,263 105,104

CHART 3.5 120,050
Evolution of
186
58
the number of 4,327
53
103
11
100,050
correspondents by
57
69
23
type of institution 10,066 4,248 4,848
80,050
Banks
Financing Companies
Financial credit unions 60,050
overseen by SFC
overseen by SES
85,600 88,287 89,255 100,533
40,050
Superintendencia de
la Economía Solidaria, 20,050
calculations. 50
2014 2015 2016 2017
CHART 3.6 2,703 3,038 3,321 4,111

100%
Evolution of 5,247 5,705 5,918 6,943

90%
the number of 8,737 9,955 10,191
correspondents by 12,638
80%
rurality level
70%
60%
Dispersed rural municipalities 50%
Source: DANE, DNP 79,043 73,929 74,833 81,412 40%

[National Planning
Department, in Spanish],
Superintendencia 30%
Superintendencia de
20%
in microfinance, Banca 10%
calculations. 0%
2014 2015 2016 2017
43
THIRD PARTY AND ACTIVE rrespondents were self-operated. On the other

CORRESPONDENTS11 hand, a third party operated 67.7% of bank co-
rrespondents13 (Chart 3.7).
In 2017, a third party operated 69.0%, or 72,406, Finally, 70.5% of credit institution correspon-
of credit institutions’ correspondents. The re- dents, that is 73,966, were active by the end of
maining 31.0%, or 32,512, were self-operated12. 2017. Financing companies and financial credit
Almost all financial companies’ correspon- unions had activity levels of 96.0% and 100.0%,
dents (99.0%) had a third party operating them, respectively, while 69.4% of bank correspon-
while the entirety of financial credit unions co- dents were active14.
100%
CHART 3.7
Ratio of self-operated
80%
correspondents vs. third
67.7% 69.0% party correspondents
60%
and active and inactive
99.0% 100.0%
correspondents by type
40%
of institution in the fourth
quarter of 2017
20%
1.0%
32.3% 31.0% Number of own

0% correspondents
Bank institutions Financing Financial Total Number of third party
Companies credit unions correspondents
100%
4.1%
30.6% 29.5%
80%
60%
Number of self-operated
95.9% 100.0% correspondents
40% Number of third party

69.4% 70.5% correspondents
20%
0% Financiera de Colombia,
Banca de las Oportunidades
Bank institutions Financing Financial Total
calculations.
Companies credit unions
44
100%
CHART 3.8 90%
Ratio of self-operated 80%
correspondents vs. third 59.6% 62.2% 70%
63.8%
party correspondents 71.3% 69.0%
60%
and active and inactive 50%
correspondents by 40%
rurality level in the fourth 30%
quarter of 2017 40.4% 20%
37.8% 36.2%
28.7% 31.0%
10%
% of self-operated
correspondents
0%
% of third party correspondents Total
Cities and urban Intermediate Rural Dispersed rural
agglomerations municipalities municipalities municipalities
100%
20.1% 22.3% 90%

31.8% 25.1% 29.5%
80%
70%
60%
% of active correspondents 50%
% of inactive correspondents 68.2% 79.9% 77.7% 74.9% 70.5% 40%
30%
20%
Source: DANE, DNP, 10%

Superintendencia Financiera 0%
de Colombia, Banca de las
Cities and urban Intermediate Rural Dispersed rural Total
Oportunidades calculations.
11. Information on the number of active and third party correspondents is available only for the 104,918 credit insti-
tutions’ correspondents overseen by Superintendencia Financiera de Colombia.
12. Aggregators may provide services at the same physical point to several financial institutions. This may cause an
overestimation of the number of correspondents in the country in existing standardized reports, as institutions
currently report individual points managed by an aggregator, who provides services to several institutions.
13. The share of third party correspondents reached 71.3% in Cities and urban agglomerations, 59.5% in intermedia-
te municipalities, 62.3% in rural municipalities, and 63.8% in dispersed rural municipalities.
14. The activity level for intermediate and rural municipalities, 79.9%, is greater than the national one, which stands
at 77.7% respectively.
45
AUTOMATIC TELLER annual rate of 2.9%. In 2017, there were 892 ad-
MACHINES - ATM ditional ATMs compared to 2015, and 482 more
than in 2016. Due to the moderate increase in the
In 2017, there were 15,709 ATMs in the coun- number of ATMs, geographic and demographic
try: banks managed 84.7% (13,312), while the coverage indicators have remained almost un-
remainder 15.3% (2,397) were managed by Ser- changed, at around 46 ATMs per 100,000 adults
vibanca. The number of ATMs have increased and 16 per 1,000 km2. Data on ATMs is only avai-
consistently in the last three years at an average lable at a national level (Table 3.1).
46
CHART 3.9 18,000
Evolution of the number of 14,424 14,817 15,227 15,709

16,000
ATMs in total and by type
of institution
2,397 14,000
2,315
2,257
2,185
12,000
Banks
10,000
Servibanca
8,000
12,239 12,560 12,912 13,312

Note: The information of 6,000
ATMs it´s only available

at the national level 4,000
2,000
Banca de las Oportunidades 0
calculations. 2014 2015 2016 2017
TABLE 3.1 Evolution of indicators for ATMs per 100,000 adults and 1,000 km2 by rurality level
2014 2015 2016 2017
Type of
institution Per Per Per Per
Per Per Per Per
100,000 100,000 100,000 100,000
1,000 km2 1,000 km2 1,000 km2 1,000 km2
adults adults adults adults
Banks 38.1 12.8 38.4 13.1 38.8 13.5 39.4 13.9
Servibanca 6.8 2.3 6.9 2.4 7.0 2.4 7.1 2.5
Total 44.9 15.0 45.3 15.4 45.8 15.9 46.5 16.4
Source: Superintendencia Financiera de Colombia, DANE and DNP, Banca de las Oportunidades calculations.
47
MOBILE FINANCIAL AGENTS15 re were seven financial agents per 100,000

adults and 2.5 per 1,000 km2. The demogra-
In the last two years, the number of financial phic coverage indicator in intermediate muni-
agents of NGOs specialized in microfinance cipalities continues to be the highest among
went up 12.5%, for an increase of 261 agents the different levels: 13.3 agents per 100,000
between 2015 and 2017. However, between adults by late 2017 (Table 3.2).
2016 and 2017, the total number of financial
agents dropped 3.8%, that is, 94 agents.
By the end of 2017, Cities and urban ag- 15. Information provided on financial agents corresponds
glomerations had a share of 51.0% of financial only to 23 NGOs specialized in microfinance, which re-
agents, followed by intermediate municipa- port their data directly to Banca de las Oportunidades.
lities with 31.4%, rural municipalities with To date, institutions overseen by Superintendencia Finan-
12.5%, and finally dispersed rural munici- ciera have not reported this information because it is not
palities with 5.1% (Chart 3.10). In 2017, the- included in any form.
1,850 2,093 2,448 2,354 CHART 3.10

2,500 109 Evolution of the
120 number of mobile
financial agents by
89 339
rurality level
295
2,000
67 Cities and urban agglomerations

279
223 Rural municipalities
792
739 Dispersed rural municipalities
1,500
667
551
1,000
1,009 1,058 1,208 1,200
500
Source: DNP, DANE,

NGOs specialized in
microfinance, Banca
0 calculations.
2014 2015 2016 2017
48
TABLE 3.2 Evolution of indicators for mobile financial agents in NGOs per 100,000 adults
and 1,000 km2 by rurality level
2014 2015 2016 2017
Rurality level Per Per Per Per

Per Per Per Per
100,000 100,000 100,000 100,000
1,000 km2 1,000 km2 1,000 km2 1,000 km2
adults adults adults adults
Cities and
urban agglo- 4.7 13.7 4.8 14.4 5.4 16.4 5.3 16.4
merations
Intermedia-
te municipa- 10.4 5.4 12.4 6.5 14.5 7.6 13.3 6.9
lities
Rural muni-
6.9 1.0 8.5 1.2 10.2 1.5 8.8 1.3
cipalities
Dispersed
rural munici- 3.1 0.1 4.1 0.2 4.9 0.2 5.3 0.2
palities
Total 5.8 1.9 6.4 2.2 7.4 2.6 7.0 2.5
Sources: DANE and DNP, Banca de las Oportunidades calculations.
POS TERMINALS16
As of December 2017, the number of POS Antioquia, Valle del Cauca, Atlántico, and
terminals was 403,512. This implies an Cundinamarca were the top five departments
increase of 10.7% (39,154) over the last year with the highest number of POS terminals,
and 27.2% (86,308) compared to 2015. By roughly 68.3% of POS terminals in the coun-
type of institution, CredibanCo and Redeban try. However, the top five departments in ter-
concentrated 96.4% (388,757 points) of the ms of the demographic coverage indicator
market, followed by banks with 2.1% (8,509), were: Archipelago of San Andres, Providen-
Asenda Red with 1.3% (5,287) and Red cia and Santa Catalina, Bogotá, D.C., Risaral-
Visionamos with 0.2% (959) (Chart 3.11). da, Quindío and Valle del Cauca, all of which
There were 1,149.8 POS terminals per had over 1,180 POS terminals per 100,000
100,000 adults and 405.1 per 1,000 km2 in adults (Annex 5). On the other hand, the lar-
2017 (Table 3.3). Additionally, 91.8% of POS gest 13 Cities and urban agglomerations had
terminals were available in Cities and urban 70.9% of Redeban’s and CredibanCo’s POS
agglomerations, 6.0% in intermediate munici- terminals (Annex 6).
palities, 1.6% in rural municipalities, and 0.6%
in dispersed rural municipalities (Chart 3.12).
In 2017, POS terminal had presence in all 16. Municipal data on POS terminals is only available for Cre-
of the country’s departments. Bogotá, D.C., dibanCo and Redeban.
49
328,774 317,204 364,358 403,512 CHART 3.11

Evolution of POS
219,756
206,034
204,163
250,000
terminals by type
179,900
of institution17
169,001
149,742
200,000
126,899
Other
107,913
150,000
Redeban Multicolor
Credibanco
100,000
14,755
14,827
10,405
50,000
10,405
0 Financiera de Colombia,
Banca de las Oportunidades
2014 2015 2016 2017
calculations.
CHART 3.12
Evolution of the
0.5%
0.6%
0.6%
1.5%
1.5%
1.6%
100% number of POS

5.6% 5.8% 6.0% terminals by
90%
rurality level18
80%
70% Intermediate municipalities
92.4% 92.1% 91.8%
60% Dispersed rural municipalities
50%
40%
Source: DNP, DANE, Low
30%
Value Networks (CredibanCo
y Redeban), Banca de las
2015 2016 2017
17. Other category includes Banks, Red Visionamos and Asenda Red, the latter for 2017.
18. Low Value Networks (CredibanCo and Redeban) directly reported municipal data to Banca de las Oportunidades.
50
TABLE 3.3
Evolution of 2015 2016 2017
indicators for Type of
POS terminals per institution Per Per Per Per Per Per
100,000 adults 100,000 1,000 100,000 1,000 100,000 1,000
adults km2 adults km2 adults km2
and 1,000 km2 by
rurality level Cities and
urban agglo- 1,300.5 3873.4 1,464.9 4433.9 1,574.6 4882.0
merations
Intermediate
321.1 169.6 376.7 198.1 422.1 219.5
municipalities
Rural
139.2 19.9 163.1 23.8 180.6 26.6
municipalities
Dispersed
rural 72.8 2.9 88.8 3.5 111.0 4.5
municipalities
Source: DNP, DANE, Low
Value Networks (CredibanCo
y Redeban), Banca de las Total 941.1 320.9 1,064.5 369.2 1,149.8 405.1
51
3.2 TRANSACTIONAL On the other hand, branches continued to

channel the largest amount of funds, with a
ANALYSIS19 share of 43.2% (3,112 trillion), followed by the
In recent years, transactions in Colombia have Internet with 35.5% (2,556 trillion); and wire
transformed and scaled up. Particularly, vir- transfers (ACH) with 14.6% and $1,051 trillion.
tual channels, such as the Internet and mobi- The dynamism of the Internet channel re-
le phones, have increased they share in both flects the potential to make progress across
monetary and non-monetary transactions. a larger and more diverse range of financial
According to a study conducted by products and services.
CGAP20 on the impact of smartphones on By late 2017, the total number of financial
financial inclusion, penetration is quickly in- transactions increased by 10.6%. The mobile
creasing in both developed countries and de- phones channel had the greatest dynamism
veloping countries, creating opportunities for as to the number of transactions, increasing
financial services providers to reach low-in- by 67.6% relative to 2016, followed by bank
come customers with digital financial servi- correspondents and the Internet, with growth
ces. Applications are now driving more the rates of 22.0% and 14.2%, respectively. On
use of financial services because they are the other hand, the number of transactions
user-friendly and convenient, and because made through branches and ACH went down
of improvements in the country’s communi- by 6.2% and 7.1%, respectively, compared
cations infrastructure. to the preceding year.
Nevertheless, the total amount of funds
NUMBER OF TRANSACTIONS AND transacted decreased in real terms by 1.9%.
TRANSACTED AMOUNT By type of channel, branches had the hi-
ghest annual decline in real terms (10.0%),
The positive trend in the use of the various followed by audio-teller (7.8%). On the other
transactional channels reflects the develop- hand, the mobile phone channel showed the
ment of the Colombian financial system as highest annual real increase, 71.0%, followed
well as its efficacy in providing high-quality by bank correspondents (27.8%) and auto-
financial products that are secure. matic payments (15.9%) (Chart 3.14).
By the end of 2017, the total number of
transactions and the transacted amount rose
to 5,455 million and $7,209 trillion , respec-
tively. The Internet continued to have the hi-
ghest share in the number of transactions, 19. This analysis is done only for credit institutions overseen
representing 47.2% (2,574 million transac- by Superintendencia Financiera de Colombia, given that
tions), followed by ATMs with a share of these institutions are the only ones having that information.
14.8% (809 million). Branches had a share 20. Consultative Group to Assist the Poor (CGAP, for its
of 11.3% (615 million), POS terminals had acronym in Spanish), http://www.cgap.org/sites/default/
10.4%, (565 million), and mobile phones had files/Impact-of-Smartphones-on-Financial-Inclusion.pd-
6.1% (331 million) (Chart 3.13). f?platform=hootsuite
52
CHART 3.13 Number of

565 331
transactions 809 615
Share of 2,574
(millions)
transactional
channels21 Internet ATM Branches POS
Mobile
phones
ACH 2.3% 1.9%

2016 2.2% 2.0%
Automatic payments
2017 2.0% 2.1%
Correspondents
3.9% 4.3%
Mobile phone
4.0% 6.1%
POS
10.5% 10.4%
Branches
13.3% 11.3%
ATM 15.4% 14.8%
Internet 46,5% 47.2%
60% 40% 20% 0% 20% 40% 60%
Transacted
$241 $11
amount $3,112 $2,556 $1,051
(trillion)
Mobile
Branches Internet ACH ATM
phones
Audio Teller 0.04% 0.03%
Mobile phone 0.1% 0.2%
Automatic payments 0.7% 0.9%

Correspondents 0.8% 1.1%
POS 1.3% 1.3%
2016
ATM 3.0% 3.3%
2017
ACH 14.1% 14.6%
Internet 32.8% 35.5%
Branches 47.1% 43.2%

Financiera de Colombia. 60% 50% 40% 30% 20% 10% 0% 10% 20% 30% 40% 50% 60%
21. It includes information of transactions made through distribution channels provided by overseen entities. It includes nine:
branches, bank correspondents (BC), automatic teller machines (ATM), POS terminals (POS), wire transfers (ACH), Internet,
mobile phones, audio-tellers and automatic payments.
53
Growth rate in the total number of

transactional channels CHART 3.14
Annual percent
6%
10. increase of
Over the last transactional
year,the number
of transactions channels
increased by 10.6%.
2015 - 2016
2016 - 2017
Correspondents 30.2%
2.0%
Automatic payments 12.8%

2.6%
ACH 10.0%
-7.1%
48.6%
Mobile telephone 67.6%
Intenet 20.5%
12.2%
5.5%
Audio-teller 14.2%
POS 12.2%
9.4%
3.8%
ATM
6.5%
-1.4%
Branches -6.2%
20% 10% 0% 10% 20% 30% 40% 50% 60% 70% 80%
Gorwth rate in the total

transacted amount
-1.9% Over the last year,

the amount of
transactions has a
annual real decrease
of 1.9%.
Correspondents 40.3%
27.8%
Automatic payments -13.1%

15.9%
1.6%
ACH 1.2%
Mobile telephone 137.3%

71.0%
Intenet -2.8%
6.1%
13.7% 2015 - 2016
Audio-teller -7.8%
2.8% 2016 - 2017
POS
2.0%
4.2%
ATM
7.8%
-1.3%
Branches -10.0% Source: Superintendencia
Financiera de Colombia.
40% 20% 0% 20% 40% 60% 80% 100% 120% 140% 160%
54
Banks made 97.7% (5,330 million) of the total hand, withdrawals and deposits had a sha-
number of transactions, and channeled 99.4% re of 13.3%, or $965 trillion and $948 trillion,
($7,166 trillion) of the total amount of funds. Fi- respectively, while international transactions
nancing companies and financial credit unions 3.1%, or $223 trillion (Chart 3.16).
had a smaller share, 2.0% and 0.3% terms num-
ber of transactions, and 0.4% and 0.2% in terms AVERAGE TRANSACTION AMOUNT
of transacted amount, respectively (Chart 3.15). BY CHANNEL
Balance inquiries represented 48.3%
(2,635 million) of total transactions; payments The average transaction amount by chan-
had a share of 27.2% (1,482 million); and with- nel (i.e., the ratio between total transacted
drawals 15.0% (819 million). In terms of tran- amounts and the number of monetary tran-
sacted amounts, the share of transfers and sactions) shows that the highest average
payments stood out, representing, on avera- value corresponded to ACH (10.1 million), fo-
ge, 35.2% of total transfers, or $2,510 trillion llowed by the Internet (6.4 million), and bran-
and $2,560 trillion, respectively. On the other ches (5.6 million).
CHART 3.15
Share of the number
97.7%
of transactions and
transacted amount
2.0%
0.3%
by type of institution
Percentage of
the number of
transactions
Banks
Financing companies
99,4% Financial credit unions

overseen by SFC
0.4%
0.2%
Percentage of
the transacted
amount
Financiera de Colombia
55
Number of transactions
CHART 3.16
Transfers (giros) 0.1% 0.1%
Share of the number
International
1.1% 1.0%
transactions of transactions and
Transfers 3.6% 3.8%
transacted amount
Deposits 5.0% 4.6%
Withdrawals 15.8% 15.0% 2016
Payments 28.5% 27.2% 2017
Balance check 46.1% 48.3%

60% 40% 20% 0% 20% 40% 60%
Transfers (giros)
Transacted amount
International 0.01% 0.1%

transactions
4.0% 3.1%
Deposits
2016
14.5% 13.2%
Withdrawals 2017
14.9% 13.4%
Payments 33.6% 35.5%
Transfers 32.9% 34.8% Source: Superintendencia

40% 30% 20% 10% 0% 10% 20% 30% 40% Financiera de Colombia.
Million of pesos CHART 3.17

Average transacted
POS 0.18 0.18
amount by channel
Mobile phone 0.19 0.27
Correspondents 0.31 0.34
2016
ATM 0.32 0.34
2017
Audio-teller 0.49 0.51
Automatic 0.48 0.57

payments
Branches 5.53 5.55
Internet 6.55 6.43
ACH 8.91 10.11
13.0 8.0 3.0 0.0 2.0 7.0 12.0
56
TRANSACTIONALITY BY neled 0.4% ($13 trillion) and 0.3% ($9 trillion)

TYPE OF CHANNEL of total funds, respectively (Chart 3.18).
Branches channeled the highest volume of
The following section describes the evolution funds (43.2%), with $3,112 trillion, and ranked
of transactions by type of institution and by third in terms of number of transactions
type of transaction: (11.3%), with 615 million. Among branches,
payments had the highest share, with 40.4%
BRANCHES and 249 million transactions, although they
represented 14.0% of the total amount, for
Banks 96.0% (591 million) of total transac- $434 trillion. In contrast, deposits represen-
tions, and channeled 99.3% of total funds ted 32.4% (199 million) of total transactions,
($3.090 trillion). As for financing compa- and 29.5% ($917 trillion) of total transacted
nies and financial credit unions overssen by amounts. Following suit, transfers’ share on
SFC, they had a share on the number of tran- total transactions stood at 3.4%, or 21 million
sactions of 2.4% (15 million) and 1.6% (10 transactions, and reached 26.3%, or $820 tri-
million), respectively. Additionally, they chan- llion, of total channeled funds (Chart 3.19).
CHART 3.18
Share of the number 99.3%
of transactions and
0.4%
transacted amount by 0.3%
type of institution
Percentage of the
Banks transacted amount
Financing companies
overseen by SFC 96.0%
2.4%
1.6%
Percentage of the number

of transactions
57
Number of transactions CHART 3.19

Share of the number
of transactions and
transacted amount by
type of transaction
11.3%
2016
International 2017
transactions 1.0% 1.2%
Transfers 2.9% 3.4%
Balance check 8.4% 8.8%
Withdrawals 15.2% 13.7%
Deposits 32.3% 32.4%
50% 40% 30% 20% 10% 0% 10% 20% 30% 40% 50%
Transacted amount
43.2%
International 8.3% 6.9%

transactions
2016
Transfers 23.3% 26.3%
2017

40% 30% 20% 10% 0% 10% 20% 30% 40% Financiera de Colombia.
58
BANK CORRESPONDENTS tions, most transactions (74.1%, or 174 million)

originated within these municipalities. This re-
Banks’ share of total transactions stood at presents an increase of 22.0% compared to
92.7%, or 217 million, and at 92.6%, or $73 2016. Transactions originated within interme-
trillion, in terms of transacted amount. Finan- diate municipalities were next, with a share on
cing companies were next, and had a share the total number of transactions of 15.1% (35
of total transactions of 7.2% (17 million), and million). This represents an increase of 22.6%.
7.4% in amount ($6 trillion) (Chart 3.20). On the other hand, rural municipalities origina-
Correspondents ranked sixth in terms of to- ted 7.4% (17 million) of total transactions and
tal transacted amount (1.1%), with $79 trillion, had an increase of 22.2%. Finally, dispersed
and in number of transactions, with a share of rural municipalities concentrated only 3.4%, or
4.3%, or 234 million transactions. 8 million, of total transactions, and had a grow-
Payments were the most frequent type of th rate of 19.1%.
transaction, with a share on the total number In addition, cities and urban agglomerations
of transactions of 58.0% (137 million transac- channeled 70.0% of total transacted amounts,
tions), and 40.4% in transacted amounts, with with $55 trillion. They were followed by inter-
$32 trillion. Even if the share on the total tran- mediate municipalities, with a share of 16.5%
sactions of deposits was 18.7% (44 million), and $13 trillion transacted, and rural muni-
their share on the total transacted amount rea- cipalities and dispersed rural municipalities,
ched 29.7% ($23 trillion). This is also the case who channeled 9.5% and 4.0% of total funds,
of withdrawals, which reached a share on to- respectively. Relative to 2016, the number of
tal transactions of 20.4% (48 million), and one transactions increased by 34.9% in cities and
of 26.0% in terms of transacted amounts ($21 urban agglomerations, 30.9% in intermediate
million) (Chart 3.21). municipalities, and 26,2% and 26.6% in rural
Consistently with the high concentration of and dispersed rural municipalities, respecti-
access points in cities and urban agglomera- vely (Chart 3.22).
CHART 3.20
92.7% 92.6%
Share of the number 7.2% 7.4%
of transactions and 0.09% 0.03%
type of institution
Banks
Financing companies
overseen by SFC
Source: Superintendencia Percentage of the number of Percentage of the

Financiera de Colombia. transactions transacted amount
59
Transactions through correspondents by type

CHART 3.21
of transaction
Share of the number
of transactions and
transacted amount through
bank correspondents by
4.3%
type of transaction
Transfers sent 0.1% 0.2%

(giros)
2016
Transfers 1.2% 1.4%
received (giros) 2017
Transfers 1.5% 1.3%
80% 60% 40% 20% 0% 20% 40% 60% 80%
Transacted amount
1.1%
Transfers sent
(giros) 0.0% 0.1%
Transfers
received (giros) 1.3% 1.2%
Transfers
2.7% 2.6%
Withdrawals
24.5% 26.0%
2016
Deposits
27.0% 29.7%
2017

50% 40% 30% 20% 10% 0% 10% 20% 30% 40% 50% Financiera de Colombia.
60
CHART 3.22
Share of the number Number of transactions
of transactions and
rurality level 3.5% 3.4% Dispersed
rural
2016 7.4% 7.4% Rural

municipalities
2017
15.1% 15.1% Intermediate

municipalities
Cities and urban

74.1% 74.1%
agglomerations
100% 80% 60% 40% 20% 0% 20% 40% 60% 80% 100%
Transacted amount
Dispersed
4.2% 4.0% rural
Rural
10.0% 9.5% municipalities
Intermediate
16.8% 16.5% municipalities
2016
2017
Cities and urban
69.0% 70.0%
agglomerations
Financiera de Colombia. 90% 70% 50% 30% 10% 0% 10% 30% 50% 70% 90%
61
AUTOMATIC TELLER number of transactions, with a share of 14.8%,

MACHINES - ATMs or 809 million transactions. Withdrawals had
the highest share of total transactions and tran-
Banks concentrated 99.6% of transactions sacted amount through ATMs: 84.9% (687 mi-
made through ATMs, with 806 million transac- llion) and 90.4% ($218 trillion), respectively.
tions, and channeled 99.5% of funds through Other types of transactions have had a
these, with $240 trillion. Financing companies consistently small share over time. For instan-
had a share on total ATMs’ transactions of ce, deposits have had a share of 1% (8 trillion)
0.3% 2 million transactions, and 0.4% in tran- on total transactions, and of 3.4% ($8 trillion)
saction amount with 1 trillion (Chart 3.23). on transacted amount. Transfers, on the other
ATMs transacted the fourth largest amount hand, have had a share of 1.1% (9 million) on
of funds, corresponding to a share of 3.3% or total transactions, and of 3.0% ($7 trillion) on
$241 trillion, and ranked second based on the transacted amounts (Chart 3.24).
CHART 3.23
99.6%
Share of the number
0.2% of transactions and
0.1% transacted amount by
type of institution
Percentage of the
number of transactions
Banks
Financing companies
overseen by SFC
99,5%
0.4%
0.1%
Percentage of the
transacted amount
62
CHART 3.24 Number of transactions

Share of the number of
transactions and transacted
amount at ATMs by type
of transaction 14.8%
2016
0.5% 0.7% Payments
2017
0.7% 1.0% Deposits
1.1% 1.1% Transfers
1.0% 1.1% International

transactions
12.1% 11.2% Balance check
84.6% 84.9% Withdrawals
100% 80% 60% 40% 20% 0% 20% 40% 60% 80% 100%
Transacted amount
3.3%
0.7% 1.5% Payments
International
1.6% 1.7% transactions
2.9% 3.0% Transfers

2016
2017
3.4% 3.4% Deposits
91.4% 90.4% Withdrawals

Financiera de Colombia. 120% 70% 20% 30% 80%
63
POS TERMINALS was payments with a share of 88.8%, or 502

million transactions, followed by international
Banks concentrated 93.2% (527 million) of transactions, with a share of 7.0%, or 40 million
total transactions made through POS termi- transactions, and balance inquiries, who had a
nals, and 88.2% ($84 trillion) of total transac- share of 4.2%, representing 24 million transac-
ted amount. Financing companies followed tions. It is to note that payments experienced a
banks, which had a share of 6.7% (38 million) 10% increase relative to 2016.
on total transactions, and of 11.7% ($11 tri- As to transactions channeling the lar-
llion) on total transacted amount (Chart 3.25). gest proportion of funds, payments stood at
POS terminals ranked fifth in terms of amount 94.5%, representing $90 trillion, and interna-
transacted (1.3%, or $95 trillion), and fourth ba- tional transactions, which reached a share of
sed on the total number of transactions (10.4%, 5.5%, or $5 trillion. Compared to 2016, pay-
or 565 million). The most relevant transaction ments had an increase of 7% (Chart 3.26).
93.2%
CHART 3.25
6.7%
0.1%
amount by type of institution
Percentage of the
Banks
Financing companies
overseen by SFC
88.2%
11.7%
0.1%
Percentage of the
transacted amount
64

amount at POS terminals by type
of transaction 2017 10.4%
2016
2017
International
Payments and
88.4% 88.8% transfers
100% 80% 60% 40% 20% 0% 20% 40% 60% 80% 100%
Transacted amount
1.3%
International
2016
2017 93.9% 94.5%

Payments and
transfers
Financiera de Colombia. 120% 70% 20% 0% 30% 80% 130%
65
INTERNET or $2,556 trillion), and concentrated most of

transactions (47.2%, or 2,574 million). Out of
Banks continue to drive the use of virtual these 2,574 million transactions, 84.6% co-
channels such as the Internet, which reached rresponded to non-monetary transactions
a share on total transactions of 99.5% (2,560 (i.e., balance inquiry). Even if the share on total
million), and of 99.97% ($2,555 trillion) in ter- transactions of transfers and payments was
ms of funds transacted in transaction amount 6.3% and 9.2%, respectively, they represen-
(Chart 3.27). ted 65.5% ($1,674 trillion) and 34.5% ($882
Throughout 2017, the Internet channeled trillion) out of the total transacted amount
the second largest amount of funds (35.5%, (Chart 3.28).
99.5%
CHART 3.27
0.48% Share of the number
0.05% of transactions and
type of institution
Percentage of the
Banks
Financing companies
overseen by SFC
99.97%
0.01%
0.02%
Percentage of the
transacted amount
66

amount made through the
Internet by type of transaction 47.2%
2016
2017 6.1% 6.3% Transfers
9.3% 9.2% Payments
Balance check
84.6% 84.6%
100% 80% 60% 40% 20% 0% 20% 40% 60% 80% 100%
Transacted amount
35.5%
33.4% 34.5% Payments
2016
2017
66.6% 65.5% Transfers
Financiera de Colombia. 80% 60% 40% 20% 0% 20% 40% 60% 80%
67
MOBILE PHONES the number of transactions, with a share of

6.1% (331 million). Balance inquiries rea-
Over the past years, the mobile phone channel ched an 87.6% share on total transactions,
has stood out as the channel with the highest while payments and transfers 8.7% and
growth rate both in number of transactions 3.7%, respectively. In terms of amount, the
and transacted amount, with banks having a share of transfers stood out at 67.6% ($7 tri-
100% share out of the total (Chart 3.29). llion), followed by payments with 32.4%, or
The mobile phone channel ranks eighth $4 trillion. Between 2016 and 2017, trans-
in terms of transacted amount, with a sha- fers increased by 79.1% and payments by
re of 0.2% (or $11 trillion), and fifth based on 75.7% (Chart 3.30).
100.0%
CHART 3.29
Share of the number
of transactions and
transacted amount
by type of institution
Percentage of the
Banks
100.0%
Percentage of the
transacted amount
68

amount through mobile phones
by type of transaction 6.1%
2016
2017 3.5% 3.7% Transfers
13.5% 8.7% Payments
100% 80% 60% 40% 20% 0% 20% 40% 60% 80% 100%
Transacted amount
0.2%
32.8% 32.4% Payments
2016
2017 67.2% 67.6% Transfers
Financiera de Colombia. 80% 60% 40% 20% 0% 20% 40% 60% 80%
69
WIRE TRANSFERS (ACH) llion) of the total, and ranked ninth in terms
of number of transactions, with a share of
Banks held the highest share on total transac- 1.9% (104 million). The entirety of opera-
tions (99.2%, or 103 million), as well as on to- tions corresponded to payment of obliga-
tal atransacted amount (99.9%, representing tions or money transfers made within the
$1,049 trillion) (Chart 3.31). country. Compared to 2016, amounts tran-
Wire transfers (ACH) channeled the third sacted through this channel increased by
largest amount of funds, 14.6% ($1,051 tri- 5% (Chart 3.32).
99.2%
CHART 3.31
0.6% Share of the number of
0.1%
amountby type of institution
Percentage of the
number of transactions Banks
Financing companies
Financial credit unions overseen
by SFC
99.9%
0.04%
0.09%
Percentage of the
transacted amount
70

amount through ACH by type
of transaction 1.9%
2016
2017
Payments and
100% 100% transfers
150% 100% 50% 0% 50% 100% 150%
Transacted amount
14.6%
Payments and
100% 100% transfers
2016
2017
Financiera de Colombia. 150% 100% 50% 0% 50% 100% 150%
71
TRANSACTIONAL PRODUCTS AND Between 2016 and 2017, this indicator in-
VIRTUAL TRANSACTIONS: creased by 6% (Chart 3.33).
In addition, the number of Internet and mo-
This section analyses indicators measuring bile phone transactions per 100,000 adults
access to transactional services (e.g., number reached 8,6 million 22 by the end of 2017,
of debit and credit cards per 100,000 adults), which, compared to 2016, represents a 15%
use of virtual transactions (e.g., number of increase (Chart 3.34).
Internet and mobile phone transactions per By the end of 2017, roughly 12.2 million
100,000 adults), as well as cashless transac- cashless transactions per 100.000 adults were
tions (e.g., number of online transactions, mo- made through Internet, mobile phones or cre-
bile phones, debit and credit card transactions dit or debit cards. Relative to 2016, this repre-
per 100,000 adults). sents an increase of 12% (Chart 3.35).
By the end of 2017, there were 81,404 de-
bit cards and 33,198 credit cards per 100,000 22. This means that on average every adult conducted 86
adults, for 114,602 cards per 100,000 adults. virtual transactions annually.
CHART 3.33
Number of cards per
Credit cards Debit cards
100,000 adults
2016
2017
33,198 81,404
32,681 75,682
and DANE.
72
CHART 3.34
Number of virtual Virtual transactions
per 100,000 adults
transactions per
100,000 adults 977,018
2017
8.597,384
7,620,367
Mobile phone transactions
Internet transactions
593,188
2016
7,492,472
6,899,284
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
0
and DANE.
CHART 3.35
Number of cashless
transactions per
Virtual transactions
100,000 adults per 100,000 adults
809,577
2017 977,018
12,157,102
Credit card transactions 2,750,141
Mobile phone transactions 7,620,367
Debit card transactions

Internet transactions 731,656
2016 593,188
10,897,637
2,643,509
6,899,284
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
and DANE.
73
ACCESS AND USE OF

TECHNOLOGIES:
This section presents the evolution of tech- 71.2% had a smartphone, a behavior similar
nology means by which people are approach to that found in municipal seats (76.1%). This
financial services, particularly through the proportion was 49.2% among populated areas
Internet and mobile phones. and dispersed rural municipalities. The number
In 2017, at the national level, 96.4% of hou- of adults with smartphones in populated areas
seholds had a mobile phone, with 97.5% held and dispersed rural municipalities, increased
at municipal seats23 and 92.2% in populated by 32%, relative to 2016 (Chart 3.37).
areas and dispersed rural municipalities24. Around 86.3% of people aged five and
As for the Internet, 50% of households above (38.8 million Colombians) used mo-
had Internet connection. Although Internet bile phones, which, again, is a behavior
connection is similar to the national average similar to that found in municipal seats
found at municipal seats (58.6%), it differs (88.3%); while populated areas and disper-
from populated areas and dispersed rural sed rural municipalities had a lower percen-
municipalities, where this proportion reaches tage: 79.5%.
17%. Between 2016 and 2017, the number Finally, 62.3% (27.9 million) of Colom-
of households with Internet access located in bian adults used the Internet, similarly to
populated areas and dispersed rural munici- those living in municipal areas (69.4%). On
palities went from 383 to 527, which consti- the other hand, with a very big difference,
tutes an increase of 37% (Chart 3.36). populated areas and dispersed rural muni-
In 2017, 73.2% of people aged five and cipalities had an average utilization rate of
above had a mobile phone. Out of these, 37% (Chart 3.38).
23. According to the National Quality of Life Survey [Encuesta Nacional de Calidad de Vida (ECV)] conducted by DANE, munici-
pal seats are defined as an urban perimeter which boundaries are set by “Agreements” of the Municipal Council. It is where
the Municipal Town Hall is found.
24. According to the National Quality of Life Survey, populated areas and dispersed rural municipalities represent small villa-
ges, police departments and townships in the rural area of a municipality, which are composed of 20 or more adjacent or
semi-detached houses.
74
CHART 3.36
Share of households Percentage of households
with mobile phones with mobile phones
and Internet
92.6% 92.2% Rural settlement

2016
2017
97.5% 97.5% Municipality

proper
96.5% 96.4% Total
150% 100% 50% 0% 50% 100% 150%
Percentage of households
with access to internet
12.6% 17.0% Rural settlement

proper
2016
2017
45.8% 50.0% Total
Source: DANE, Quality of

Life Survey 2017. 80% 60% 40% 20% 0% 20% 40% 60% 80%
75
CHART 3.37
Percentage of people
aged 5 and above having
Share of people
a mobile phone aged 5 and
above having a
mobile phone
Rural settlement 59.8% 60.9%
2016
2017
Municipality 75.5% 76.6%
proper
Total 72.1% 73.2%
100% 80% 60% 40% 20% 0% 20% 40% 60% 80% 100%
Percentage of people ages

5 and above having a
smartphone
Rural settlement 38.4% 49.2%
Municipality 69.1% 76.1%

proper
2016
2017
Total 63.5% 71.2%

85% 65% 45% 25% 5% 0% 15% 35% 55% 75% 95% Life Survey 2017.
76
CHART 3.38
Percentage of people using
Percentage of a mobile phone anywere
people aged 5 and
above using the
Internet and mobile
Rural settlement
78.1% 79.5%
2016
2017

proper
85.8% 86.3% Total
100% 80% 60% 40% 20% 0% 20% 40% 60% 80% 100%
Percentage of people using

the Internet anywhere
Rural settlement
32.2% 37.0%
65.4% 69,4% Municipality

proper
2016
2017
58.1% 62.3% Total

Life Survey 2017. 80% 60% 40% 20% 0% 20% 40% 60% 80%
77
ANNEXES
Annex 1. Number of branches and department indicator per 100,000 adults and
1,000 km2 (2017)
Number of Number of branches Number of branches

Department
branches per 100,000 adults per 1,000 km2
Amazonas 9 30.5 1.2
Antioquia 1,214 25.8 19.3
Arauca 27 17.6 1.1
Archipiélago de San Andrés,

16 29.1 323.9
Providencia y Santa Catalina
Atlántico 331 19.0 99.8
Bogotá, D.C. 1,662 28.2 1024.1
Bolívar 198 14.0 7.4
Boyacá 299 34.1 12.9
Caldas 158 22.4 21.3
Caquetá 51 16.9 0.6
Casanare 75 31.8 1.7
Cauca 125 13.3 4.0
Cesar 139 21.0 6.2
Chocó 33 11.5 0.7
Córdoba 145 12.8 5.8
Cundinamarca 459 24.3 20.5
Guainía 4 33.5 0.3
Guaviare 11 16.8 0.2
78
Number of Number of branches Number of branches

Department
branches per 100,000 adults per 1,000 km2
Huila 229 29.5 12.6
La Guajira 63 10.7 3.1
Magdalena 119 15.0 5.1
Meta 163 24.6 1.9
Nariño 199 16.6 6.3
Norte de Santander 161 17.5 7.4
Putumayo 49 22.7 1.9
Quindío 100 24.5 51.7
Risaralda 180 26.1 50.6
Santander 488 32.9 16.0
Sucre 84 14.8 7.9
Tolima 235 24.4 9.7
Valle del Cauca 778 22.9 37.6
Vaupés 2 9.8 0.1
Vichada 7 17.0 0.1
National total 7,813 23.1 8.1
Source: DANE, DNP [National Planning Department, in Spanish], Superintendencia Financiera de Colombia,
Superintendencia de la Economía Solidaria, and NGOs specialized in microfinance, Banca de las Oportunidades calculations.
79
Annex 2. Number of branch offices and indicator per 100,000 adults and 1,000 km2 in the 13
largest cities (2017)
Number Number of branches Number of branches

Municipalities % participation
of branches per 100,000 adults per 1,000 km2
Bogotá, D.C. 1,662 21% 28.2 1,024.1

Medellín 547 7% 27.9 1,459.3
Cali 488 6% 27.7 866.7
Barranquilla 267 3% 30.5 1,731.5
Bucaramanga 176 2% 44.7 1,151.0
Cartagena 143 2% 20.0 241.1
Pereira 125 2% 35.6 205.5
Ibagué 102 1% 25.7 74.1
Villavicencio 91 1% 26.2 70.8
Cúcuta 87 1% 19.2 76.8
Neiva 83 1% 33.5 65.4
Manizales 81 1% 26.8 183.7

Santa Marta 69 1% 21,4 29,4
Annex 3. Demographic indicator for bank correspondents, number of third party,

self-operated and active correspondents by department1 (2017)
Number
of corres- Number of co- Number of Number of Number of
Number of bank
Department pondents rrespondents active self-operated third party
correspondents
per 100,000 per 1,000 km2 correspondents correspondents correspondents
adults
Amazonas 50 169.7 6,5 29 11 39
Antioquia 9,897 210.7 157.2 8,127 3,630 6,267
Arauca 374 243.2 15.7 280 175 199

Archipiélago
de San Andrés,
118 214.7 2,388.6 108 73 45
Providencia y
Santa Catalina
Atlántico 5,496 315.7 1,657.5 4,317 2,485 3,011
80
Number
of corres- Number of co- Number of Number of Number of
Number of bank
Department pondents rrespondents active self-operated third party
correspondents
per 100,000 per 1,000 km2 correspondents correspondents correspondents
adults
Bogotá, D.C. 30,198 512.3 18,608.0 16,658 4,164 26,034

Bolívar 3,296 233.3 123.4 2,714 1,738 1,558
Boyacá 2,802 319.9 121.1 2,231 1,027 1,775
Caldas 1,951 276.1 262.8 1,592 981 970
Caquetá 897 298.0 10.0 620 222 675
Casanare 1,053 445.8 23.7 825 394 659
Cauca 1,914 203.8 61.3 1,457 712 1,202
Cesar 1,165 175.8 51.6 901 440 725
Chocó 528 183.3 11.0 379 236 292
Córdoba 1,667 147.3 66.5 1,439 803 864
Cundinamarca 6,790 359.5 303.5 5,025 1,747 5,043
Guainía 17 142.3 1.1 13 5 12
Guaviare 178 272.6 3.2 94 68 110
Huila 2,139 275.3 117.9 1,662 723 1,416
La Guajira 597 101.1 28.9 452 191 406
Magdalena 1,472 185.8 63.6 1,168 524 948
Meta 2,773 418.2 32.4 2,223 1,377 1,396
Nariño 2,350 196.6 74.6 1,780 897 1,453
Norte de
2,078 225.5 95.1 1,610 704 1,374
Santander
Putumayo 313 145.3 12.0 222 130 183
Quindío 1,089 266.6 563.2 932 611 478
Risaralda 1,987 287.9 558.7 1,395 784 1,203
Santander 5,460 368.1 178.7 3,534 1,127 4,333
Sucre 1,342 235.8 126.7 1,127 758 584
Tolima 3,047 317.0 126.2 2,240 1,032 2,015
Valle del Cauca 11,777 347.1 569.9 8,741 4,698 7,079
Vaupés 23 112.8 0.8 20 15 8
Vichada 80 194.5 0.8 51 30 50
National total 104,918 310.3 109.3 73,966 32,512 72,406
1. These figures were computed using the information on bank correspondents of credit institutions overseen by Superinten-
dencia Financiera de Colombia, which corresponds to 104,918 points of access.
81
Annex 4. Demographic indicator for bank correspondents, number of third party, self-
operated and active correspondents for the 13 main cities (2017)
Number
Number Number of Number Number of Number of
of corres-
of bank correspon- of active self-opera- third party
Municipality pondents
correspondents per correspon- ted corres- correspon-
per 100,000
dents 1,000 km2 dents pondents dents
adults
Bogotá, D.C. 30,198 512.3 18,608.0 16,658 4,164 26,034
Cali 6,763 383.5 12,011.5 4,647 2,157 4,606
Medellín 4,301 219.6 11,474.6 3,559 1,484 2,817
Barranquilla 3,843 439.0 24,921.5 2,986 1,647 2,196
Bucaramanga 2,570 652.8 16,807.8 1,536 427 2,143
Cartagena 2,062 288.8 3,475.8 1,717 1,098 964
Villavicencio 1,713 492.9 1,332.1 1,321 807 906
Ibagué 1,644 413.7 1,193.7 1,202 572 1,072
Pereira 1,335 380.5 2,195.0 847 446 889
Cúcuta 1,150 253.3 1,014.8 885 405 745
Soacha 1,009 280.2 5,382.9 745 184 825
Pasto 953 288.9 866.8 752 377 576
Manizales 929 307.5 2,106.3 739 486 443
Annex 5. Demographic indicators for the number of POS terminals by department (2017)
Number of Number of POS Number of POS

Department
POS terminals terminals per 100,000 adults terminals per 1,000 km2
Amazonas 344 1,167.5 44.7
Antioquia 48,381 1,030.0 768.3
Arauca 852 553.9 35.7
Archipiélago de San Andrés

1,871 3,404.6 37,872.9
Providencia y Santa Catalina
Atlántico 19,888 1,142.3 5,998.0
82

Department
Bogotá, D.C. 137,369 2,330.5 84,646.6
Bolívar 13,093 926.9 490.1
Boyacá 7,002 799.5 302.6
Caldas 5,865 830.0 789.9
Caquetá 1,097 364.4 12.2
Casanare 2,661 1,126.6 59.9
Cauca 3,309 352.4 105.9
Cesar 4,739 715.1 210.0
Chocó 527 183.0 10.9
Córdoba 5,435 480.2 216.7
Cundinamarca 19,664 1,041.0 879.0
Guainía 22 184.2 1.4
Guaviare 102 156.2 1.8
Huila 5,900 759.2 325.2
La Guajira 1,639 277.7 79.5
Magdalena 5,983 755.3 258.6
Meta 7,279 1,097.8 85.1
Nariño 5,700 476.9 181.0
Norte de Santander 6,877 746.1 314.6
Putumayo 896 415.9 34.5
Quindío 5,078 1,243.0 2,626.2
Risaralda 9,102 1,318.7 2,559.1
Santander 16,662 1,123.4 545.2
Sucre 2,762 485.3 260.8
83

Department
Tolima 8,410 874,8 348.4
Valle del Cauca 40,187 1,184.5 1,944.6
Vaupés 17 83.3 0.6
Vichada 44 107.0 0.4
National total 388,757 1,149.8 405.1
Source: Cerdibanco and Redeban, Banca de las Oportunidades calculations.
Annex 6. Demographic indicators for the number of POS terminals for the 13 main cities (2017)

Municipality
Bogotá, D.C. 137,369 2,330.5 84,646.6
Medellín 31,256 1,595.7 83,387.6
Cali 29,385 1,666.4 52,189.6
Barranquilla 17,220 1,967.2 111,670.3
Cartagena 11,917 1,669.1 20,088.1
Bucaramanga 9,907 2,516.3 64,791.9
Pereira 7,416 2,113.7 12,193.6
Ibagué 6,069 1,527.2 4,406.6
Villavicencio 5,745 1,653.1 4,467.6
Cúcuta 5,715 1,258.6 5,043.2
Santa Marta 5,036 1,560.5 2,145.6
Manizales 4,481 1,483.3 1,159.9
Neiva 4,189 1,692.6 3,298.9
Source: Cerdibanco and Redeban, Banca de las Oportunidades calculations.
84
CAPÍTULO 3 | INFRAESTRUCTURA FINANCIERA
85
4
FINANCIAL
86
CHAPTER 4 | ACCESS AND USAGE OF DEPOSIT PRODUCTS
4.
ACCESS AND
USAGE OF DEPOSIT
PRODUCTS
S
avings are crucial when it comes to buil- businesses with deposit products under the
ding financial resilience. They help set dimensions of access and use at the natio-
financial goals, face contingencies, and nal level. This analysis uses information re-
smooth maximum and minimum levels of in- ported by financial institutions to the credit
come and expenses. bureau TransUnion 1. In addition, this sec-
This chapter analyzes the recent evolution tion presents information on the number of
in the number of adults and businesses with adults who use their products by gender
access to deposits, the total number of pro- and age ranges.
ducts in the system, along with their activity
level, balances and transactions made throu-
gh them. This analysis emphasizes on tradi-
tional savings accounts, electronic savings
accounts, simplified-procedure savings ac- 1. A deposit product is considered to be active when it had
counts, and electronic deposits (CAE, CATS at least one movement in the last six months. Given the
and DE, respectively, for its Spanish acronym). above, figures refering to the total number of adults with
The first section of this chapter conducts deposit products, include both active and inactive pro-
a description of the number of adults and ducts.
87
The chapter presents the distribution by gen- in-force legal monthly minimum ranges (SML-
der using both the number of adults with pro- MV, by its Spanish acronym) (up to 1 SMLMV,
ducts and the total number of products in between 1 and 3 SMLMV, and between 3 to 5
circulation. The difference between these two SMLMV5).
distributions is that the former considers the Finally, complementing the analysis on ac-
total number of adults with financial products. tivity levels, recent trends on the following fi-
Therefore, if an individual has more than one nancial transactions were reviewed: deposits,
product, it is accounted only once. The se- payments and transfers. institution
cond measure accounts for the total number
of products held by adults. 2. Balances are only reported for savings accounts and
In addition, the evolution of the number of electronic savings accounts.
savings accounts, CAE, CATS and DE, as well 3. Institutions were classified as those supervised by the
as their activity levels, balances2 and transac- SFC: Banks, Financing Companies, Financial Corpora-
tionality, is reviewed. Regional data is presen- tions and Financial credit unions overseen by SFC, and
ted for traditional savings accounts and CAE3. credit unions overseen by Superintendencia de la Eco-
Analyses by level of rurality considers four nomía Solidaria (SES by its Spanish acronym).
types of municipalities: cities and urban ag- 4. This indicator is computed only for traditional savings
glomerations, intermediate municipalities, ru- account and CAE.
ral municipalities, and rural and scattered rural 5. In 2017, the legal monthly minimum wage (SMLMV by
areas4. Product balances are disaggregated by its Spanish acronym) was 737.717 COP pesos.
88
1 The number of adults with at least one 2

traditional savings account was 25.2
In 2017, 73.1% of
million and close to 4.1 million had
adults with traditional
an electronic deposit.
savings accounts used
The number of businesses with at least them, while 48.4%
one savings account was 641,227 . This of businesses used
figure increased by 139,802 or 27.9% their accounts.
compared to 2016.
3 Out of the total number of adults with savings 4

accounts, 49.4% were men and 50.4%
were women.
Out of the total number of adults with at least he distribution by age groups for
one simplified-procedure savings account, different products has remained similar
50.2% were men and 49.6% were women. over the past years. Access to deposit products
The majority of adults with electronic savings account
has been concentrated mainly in adults between
and electronic deposits are women. 26 to 40 and 41 to 65 years.
5 6 With regards to the number

The largest of active accounts, traditional
balances are savings accounts, simplified-
found in traditional For electronic procedure savings account and
savings accounts, savings accounts, electronic deposits experienced
in which men women a positive increase
contributed contributed between 2016 and 2017 while
54% of the total 86% of total electronic savings accounts
reported in 2017. balances. experienced a reduction.
7 8 Men had 52.5% of the savings accounts while

he total number of accounts women had 47.4%; this distribution remained
per 100,000 adults unchanged relative to 2016.
increased for all types of In the case of simplified-procedure savings account, 56.7%
deposit products. Simplified- of accounts belonged to women and 43.3% to men;
this distribution remained unchanged relative to 2016.
procedure savings account
had the largest growth rate In the case of electronic savings accounts, 85.5% of
(129.9%). the accounts belonged to women, while in the case of
electronic deposits 67.6% belonged to women; this
result has remained unaltered relative to 2016.
The most frequent transactions in 2017 were:

9 As in previous 10
years, the number of Withdrawals for traditional savings accounts
traditional savings (37.5%) and simplified-procedure savings account
(39.4%), as in 2016.
accounts and electronic
savings accounts Payments for electronic savings accounts (95.1%);
were concentrated this result did not change with regards to 2016.
in cities Deposits operations for electronic deposits
and urban (40.6%), which represented a shift with regards to
agglomerates. 2016, when the most frequent transaction
were withdrawals.
89
4.1. TRADITIONAL 4.2). This figure increased by 139.802, or 27.9%,

compared to 2016. The number of businesses that
SAVINGS ACCOUNTS actively used their accounts was 310,057, which
Savings accounts were the product with highest meant an increase of 63,845, or 25.9%, relative to
penetration among Colombians. In 2017, 25.2 mi- 2016. The proportion of businesses that actively
llion adults had at least one savings account. This used their savings accounts went from 49.1% to
corresponds to 74.6% of the country’s adult po- 48.4% between 2016 and 2017.
pulation and represents an increase of 1.6 million Additionally, there was a total of 59.4 million
adults, or 6.9%, relative to 2016. accounts in the financial system by the end of
Out of the 25.2 million adults with savings ac- 2017. Out of these accounts, 26,0 million were
counts, 18.4 million actively used them (Chart 4.1). active (Chart 4.3). With regards to 2016, the total
The number of adults with at least one active ac- number of accounts increased by 8.2%, while the
count increased by 1.4 million (8.4%) compared number of active accounts by 8.7%. These annual
to 2016. By the end of 2017, the rate between the growth rates were greater than the average growth
number of adults with active savings accounts and rate of the last three years (6.9% for total accounts
the total number of adults with access to them (i.e., and 6.1% for active accounts). The activity level of
the activity level) stood at 73.1%. This entails a one these accounts has remained close to 44% over
percentage point increase as compared to 2016. the last three years.
In 2017, the gender distribution of adults with at In 2017, there were 175,579 accounts and
least one active savings account, favored neither 76,861 active accounts per 100,000 adults. The
women men nor women. Out of the population total number of accounts per 100,000 adults in-
with active savings accounts, 76% were between creased by 10,600, or 6.4%, and the number
26 and 65 years old. The proportion of adults aged of active accounts by 4,986, or 6.9%, between
18 to 25 with active savings accounts was 15.3%, 2016 y 2017. The average growth rate of active
almost twice than that of the population over 65 accounts per 100,000 adults between 2015 and
years old (8.1%). 2017 (4.4%) was lower than the one observed be-
In addition, by the end of 2017, 641,227 bu- tween 2016 and 2017 (5.2%).
sinesses had access to savings accounts (Chart
30 CHART 4.1
25.2 Adults with total
25 23.6 and active savings
accounts
20 18.4
17.0
Millon adults
15
Total
10 Active
5
Source: TransUnion, Banca de las
0 Oportunidades calculations.
2016 2017
90
700
CHART 4.2 641.2
Businesses with
total and active 600
savings accounts
501.4
500
Thousands of companies
Total 400
Active
310.1
300
246.2
200
100
calculations. 0
2016 2017
59.4
60
CHART 4.3 54.9
Total number of
savings accounts by 50
activity level
33.4
40
Active savings account 31.0
Inactive savings account
30 Million accounts
20
23.9 26.0
10
and Superintendencia de la
Economía Solidaria. 0
2016 2017
91
60
CHART 4.4
58 2.8 Total number of
savings accounts by
0.9
56
0.4 entity type
Savings accounts (in million)
Banks
54 2.5
Financing companies
52 0.8 Financial credit unions overseen by SES

0.3
55.3 Financial credit unions overseen by SFC
50 Financial corporations
51.3 Source: Superintendencia

48
y Superintendencia de la
46 Economía Solidaria
2016 2017
By the end of 2017, the majority of savings greater than one minimum wage (5.6% were ba-
accounts and active savings accounts were lances between 1 and 3 minimum wages, and
concentrated in banks: 93.2% and 90.4% of 2,5% had balances of more than 3 minimum
active accounts, respectively. These figures wages). Accounts with balances up to 1 mini-
have remained relatively stable over the last mum wage, despite representing the majority of
three years (Chart 4.4). The highest activity le- the accounts, only contributed 1.3% to total of
vels were experienced by credit unions: 66.7% balances in the system. Accounts with balances
of savings accounts were active. Savings ac- amounting 1 to 3 minimum wages had a share
counts with the lowest activity levels were tho- of 2.2% on total balances.
se of financing companies, with 42.5%. With Across all ranges, banks made the largest
the exception of financial corporations and contribution. Particularly, in the range of up to 1
banks, across all types of entities, there has minimum wage, banks contributed 97.4% of the
been a reduction in the activity levels of savings total number of accounts and 96.9% of balan-
accounts over the past three years. ces. In the range of 1 to 3 minimum wage banks
As of 2017, total balances on savings ac- contributed 98.3% and 98.0%, respectively. Sa-
counts accrued to $165 trillion, 3.8%6 higher vings accounts with more than 5 minimum wage
than in 2016 (Chart 4.5). Banks contributed represented 14.5% of the number of accounts
to most (97.8%) of total savings accounts’ and 94.7% of their balance.
balances. In the second place were credit
unions, with a share of 1.5%.
When analyzing the distribution of savings ac- 6. Growth rates of balances are expressed in real terms.
counts by ranges of minimum wages for 20177 7. This level of disaggregation is applied to the institutionssu-
(table 4.1), it was found that most accounts pervised by the SFC because the financial credit unions over-
(77.3%) had balances up to 1 minimum wage, seen by Superintendencia de la Economía Solidaria do not
while less than one tenth had balances that were yet report with this same level of disaggregation (by SMMLV).
92
$170,000,000
CHART 4.5
Balances of savings
accounts (million) $165,000,000
$2,429,062
$493,671
$251,991
$405.593
Financial credit unions $160,000,000

overseen by SES
overseen by SFC
Financing Companies
$155,000,000
Financial Corporations
Banks $2,176,676 $161,916,165

$448,464
$232,107
$582,972 $150,000,000
$145,000,000
Source: Superintendencia $149,737,594
Economía Solidaria $140,000,000
2016 2017
TABLE 4.1 Savings accounts by salary range (2017)
From >1 SMMLV to 3 From >3 SMMLV to 5

Up to 1 SMMLV > 5 SMMLV
SMMLV SMMLV
Type of
institution
Balance Balance Balance Balance
Number Number Number Number
(million) (million) (million) (million)
Banks 42,627,758 $1,988,856 3,127,491 $3,577,262 1,392,187 $2,913,153 8,192,591 $153,436,894
Financial
450 $16 18 $24 18 $53 96 $405,501
Corporations
Financing
355,069 $19,427 18,822 $24,742 6,084 $17,405 12,388 $190,417
Companies
Financial cre-
dit union over- 785,214 $43,514 35,433 $46,918 11,931 $34,662 22,927 $368,578
seen by SFC
Total 43,768,491 $2,051,813 3,181,764 $3,648,945 1,410,220 $2,965,273 8,228,002 $154,401,390
Source: Superintendencia Financiera de Colombia
93
The distribution of accounts by gender shows 3.5% and 1.7%, respectively. While cities con-
that 47.4% belonged to women (26.2 million tributed about 3.5 million additional accounts
accounts) and 52.5% to men (29.0 million (an increase of 7.5% compared to 2016) and
accounts). Between 2016 and 2017, men intermediate municipalities 660,740 (an in-
and women’s savings accounts increased by crease of 12.1%), it should be noted that rural
17.0% y 16.8%, respectively (Chart 4.6). In and scattered rural municipalities had growth
2016, no data on the number of accounts by rates of 11.9% and 11.3%, respectively.
gender was available for the credit unions. For The departments that registered the lar-
credit institutions alone, the growth rate in the gest number of accounts were: Bogotá D.C,
number of savings accounts belonging to men with a share of 28.8%); Antioquia, with a sha-
increased by 11.6%, while the growth rate re of 13.5%; and Valle del Cauca concentra-
among women was 10.5%, a difference of ted 10.4% of savings accounts. On the other
one percentage point. The remaining traditio- hand, Vaupés, Vichada and Amazonas had
nal savings accounts belonged to businesses. a share of less than 0.5% (Chart 4.7). This
With regards to the total balances by gen- distribution is consistent with the population
der8, women’s savings accounts represented distribution of such departments, where Bo-
46.4% of the total balance, while men ac- gotá concentrates 17.4% of Colombia’s po-
counted for 53.5%. This means that men’s pulation, Antioquia 13.9% and Valle del Cauca
savings accounts had an excess balance of 10.0%. At the same time, Vaupés, Vichada,
$3,7 trillion over women’s accounts. The ave- Amazonas and Guainía have less than 0.1%
rage balance of men’s accounts was above of the total population. Guainía has exhibited
than that of women: $969,434 and $931,081, the highest activity levels (above 58%) over
respectively. Compared to 2016, total balan- the last three years.
ces of women’s accounts had a real increase Additionally, Bolívar and Amazonas had the
of 2.9%, and of 1.8% in the case of balances largest growth rate in terms of the number of
of men’s accounts. accounts, while Bolívar and Vaupés had the
The average balance of women’s ac- largest growth rate with regards to balances.
counts in credit institutions was higher by Antioquia, one of the main departments of the
$152,038 than that of credit unions overseen country, was among those that grew at com-
by Superintendencia de la Economía Solida- paratively small rates (see Maps 4.1 and 4.2).
ria. In the case of men, that difference was
close to $149,250.
By the end of 2017, the distribution of sa- 8. The total of traditional savings accounts and their ba-
vings accounts by rurality barely changed lances take into account both natural persons and legal
compared to the last three years. Cities and persons. As a result, the number and balance of savings
urban agglomerations concentrated 84.4% of accounts by gender do not coincide with these totals.
the number of savings accounts, followed by The difference corresponds to legal persons.
intermediate municipalities with 10.3%, and
rural and scattered rural municipalities with
94
35
CHART 4.6
Savings accounts
distribution by gender 29.0 30
26.2
24.8
25
22.4
Women
Men 20
Million accounts
15
10
Source: Superintendencia 5
Economía Solidaria.
0
2016 2017
CHART 4.7 8,000,000 100%
Number of active 7,000,000

90%
savings accounts 80%

6,000,000
Number of active savings accounts
% of accumulatived active savings

70%
5,000,000
60%
accounts
Number of active savings 4,000,000 50%
accounts
% accumulated active 40%
savings accounts 3,000,000
30%
2,000,000
20%
1,000,000
10%
0 0%
Bogotá, D.C.
Antioquia
Valle del Cauca
Santander
Cundinamarca
Atlántico
Huila
Tolima
Bolívar
Norte de Santander
Risaralda
Boyacá
Caldas
Nariño
Meta
Córdoba
Cauca
Magdalena
Cesar
Quindío
Sucre
Casanare
La Guajira
Caquetá
Putumayo
Chocó
Arauca
San Andrés
Guaviare
Amazonas
Guainía
Vichada
Vaupés
95
MAP 4.1 When reviewing the growth rates of the num-

Departments with ber of savings accouns and their balances by
the largest and department, it is found that Bolívar and Ama-
smallest growth zonas had the greatest growth rates in ter-
rate of balances in ms of the number of accounts, while Bolívar
savings accounts and Vaupés had the greatest ones in terms of
balances. Antioquia, one the largest depart-
ments in the country, had one of the smallest
growth rates in the number of accounts and
also experienced the largest real decrease
in terms of the balance in these accounts.
Arauca
-4.7%
Antioquia Casanare
-6.3% 20.4%
Vaupés
26.5%
Source: Superintendencia Guaviare

Financiera de Colombia -8.2%
96
MAP 4.2
Departments
with the largest
and smallest
growth rate in
the numbers of
savings accounts
Bolívar
17.1%
Antioquia
0.1%
Cundinamarca
15.4%
Amazonas
15.9%
Financiera de Colombia Bogotá D.C.
and Superintendencia de la 3.7%
97
Finally, over the last quarter of 2017, $436 The share of young adults (between 18 and
million transactions were made through sa- 25 years) and adults over 65 years was 4.0%.
vings accounts for a total amount of $1,287 When analyzing the number of circulating
trillion9 (Chart 4.8). Compared to the same pe- electronic savings accounts, there were 4.0
riod of 2016, the number of monetary transac- million accounts by the end of 2017, 579,838
tions made through savings accounts in the additional accounts as compared to 2016.
last quarter of 2017 went down by 4.0% and Considering that people can only have one
the transacted amount by 5.3% in real terms. electronic savings account in the financial
Specifically, withdrawals had the largest sha- system, the number of adults with this pro-
re on the number of transactions (37.5%) (al- duct (2.9 million) should be equal to the num-
most twice as deposits’, which accounted for ber of existing accounts (4.0 million)10.
16.7% of the total). Withdrawals were followed With regards to the activity levels of elec-
by payments, which had a share of 30.3%. tronic savings accounts, 1.8 million accounts
The average number of transactions was 16.7 had been used over the last six months, which
per active savings account, a reduction of 2.2 are 88,434 accounts less than in 2016. The
with regards to the last quarterquarterquarter activity level of these accounts, measured as
of 2016. Transfers (sent and received) contri- the ratio between the number of active ac-
buted the most to the total amount traded, counts over the total number of accounts in
with shares of 40.2% and 19.3%, respectively. the system, was 46% (Table 4.2). Although the
activity level of electronic savings accounts
was higher than that of traditional savings ac-
4.2. ELECTRONIC counts, it went down by 10 percentage points
compared to 2016.
SAVINGS ACCOUNTS Relative to the size of the adult population,
By the end of 2017, 2.9 million adults had at for every 100,000 adults there were 11,898
least one electronic savings account. This fi- electronic savings accounts (14.9% more than
gure increased by 145 thousand adults, or in 2016) and 5,473 active accounts (6.0% less
5.1%, compared to 2016. The difference be- than in 2016). The number of active accounts
tween the number of men and women with per 100,000 adults had also fallen between
some CAE is wide. By the end of the year, 2015 and 2016 by (-9%).
76.8% of adults with at least one electronic
savings account were women. This is becau-
se electronic savings account are used to pay
monetary incentives in light of the largest con-
ditional cash transfer program, Más Familias
en Acción, which focuses on women. 9. It refers to the information of the last quarter of 2017
The distribution by age range shows that 10. There is a difference of approximately one million which
50.0% of adults with an active electronic sa- is explained because financial institutions are not repor-
vings account were between 41 and 65 years ting the total number of people with this product to the
old, and 46.0% between 26 and 40 years old. central information systems.
98
0
59
7,
CHART 4.8 180,000,000 $600,000,000
57
3,
7
38
16
Transactions made
4,
8
,3
18
160,000,000
with traditional
$5
2
49
$500,000,000
savings accounts
4.
29
2.
140,000,000
13
120,000,000 $400,000,000
Amount (in million)

100,000,000
Amount
$300,000,000
$2
7
0
49
80,000,000
40
52
,1
7,
8.
2
4
1
9
2,
51
,7
.2
09
07
8,
73
3
7
$2
,4
60,000,000 70 $200,000,000
$1
9 6
,9
43
47
,4
,0
98
41
18
,3
$1
40,000,000
,0
74
39
,2
28
$100,000,000
20,000,000
Financiera de Colombia. $0
Deposits Payments Withdrawals Sent transfers Received
transfers
TABLE 4.2 Number and balance of electronic savings accounts
2016 2017
Number Balance (Million) Number Balance (millions)
Total CAE 3,443,136 $ 97,988 4,022,974 $ 222,095
Active CAE 1,939,084 $ 50,891 1,850,650 $ 154,623
Source: Superintendencia Financiera de Colombia.
99
By the end of 2017, electronic savings accounts were concentrated in cities and urban agglome-
had a balance of $222,095 million, while active rates (49.6%), followed by intermediate munici-
electronic savings accounts had a balance of palities (24.9%) (Chart 4.10). Rural and scattered
$154,623 million. The real growth of these balan- rural municipalities, which concentrated 16.3%
ces was 118% for the total accounts and 192% and 9.0% of electronic savings accounts, had
for active accounts, relative to 2016. the greatest growth rate over the last year
In 2017, the number of women’s accounts (34.6% in rural municipalities and 37.9% in sca-
was 3.4 million and that of men 581,798, a di- ttered rural areas).
fference of 2.8 million accounts (Chart 4.9). In When analyzing the distribution of electronic
addition, women’s accounts contributed 85.5% savings accounts by department, it was found
to the total balance, reaching $189,975 million. that Antioquia (11.4%), Córdoba (6.5%) and Va-
Men’s accounts contributed 14.5% of total ba- lle del Cauca (6.3%) were the regions that regis-
lance, or $32,120 million. tered the greatest number of electronic savings
Relative to previous years, the number of accounts by the end 2017 (Chart 4.11). Antioquia
men’s electronic savings accounts grew faster and Córdoba have remained within the top three
than that of women’s (21.2% and 16.1%, respec- positions in this regard for the past two years. In
tively). Overall, balances of women’s electronic turn, the largest balances of the last three years
savings accounts increased by 133.5%, while were recorded in Antioquia and Bolivar, which
balances of men’s electronic savings accounts contributed 18% of the total balance in 2017.
grew by 93.2%. The departments with the highest activity levels
As it was the case with traditional savings ac- of 2017 were Vaupés, Amazonas and Guainía
counts, circulating electronic savings accounts (above 75%)
CHART 4.9
Distribution of the
581,798
14.5% number of electronic
savings accounts
by gender
CAE women
CAE men
85.5% 3,441,176
100
3
CHART 4.10
Number of CAE by
level of rurality 2.0 2.0
1.9 2
2015
2016
2
2017
Million accounts
1.0
1
0.9
0.8
0.7
0.6
0.5
1
0.4
0.3 0.3
Source:Superintendencia 0
Financiera de Colombia. Cities and urban Intermediate Rural Dispersed rural
CHART 4.11
Accounts and 250,000 100%
balances of CAES 90%
by department 200,000 80%
% of cumulative of active CAE

Number of active 70%
CAE.
Number of active CAE
% of accumulated 60%
active CAE 150,000
50%
100,000 40%
30%
50,000 20%
10%
0 0%
Antioquia
Córdoba
Bolívar
Magdalena
Nariño
Cauca
Valle del Cauca
Santander
Huila
Cesar
Cundinamarca
Tolima
Sucre
Norte de Santander
Boyacá
Atlántico
La Guajira
Meta
Bogotá, D.C.
Chocó
Putumayo
Caquetá
Casanare
Caldas
Risaralda
Arauca
Quindío
Guaviare
Amazonas
San Andrés
Vichada
Guainía
Vaupés
101
Compared to 2016, Amazonas, Vau- MAP 4.3

pés and Guainía experienced the lar- Departments with the
gest growth in terms of the number largest and smallest
of circulating electronic savings ac- growth of balances
counts, while Vaupés, Guainía and in electronic savings
Huila did it in terms of total balan- accounts
ces. The department with the sma-
llest growth rate, regarding both
balances and number of accounts,
was Atlántico.
Atlántico
47.9% Guainía
470%
Bogotá D.C.
11.8%
Vaupés
716%
and Superintendencia de la Huila
Economía Solidaria. 406%
102
MAP 4.4
Departments with
the largest and
smallest growth
of the number of
electronic savings
accounts
Guainía
199.8%
Atlántico
1.6%
Vaupés
212%
Quindío
1.6%
Amazonas
253%
103
3,500,000
$300,000 CHART 4.12
Transactions made
2
4.
80
with CAE
3,
26
3,000,000
$250,000
Number
2,500,000 Amount
$200,000
Amount transacted (in million)

2,000,000
1,500,000
$150,000
1,000,000
$100,000
500,000
.1
08
,2
20
7
8.
29
88
2.
08
1,
4.
0 $50,000 Source: Financial

Deposits Payments Withdrawals Sent transfers Received transfers Superintendence of
Colombia.
Finally, three million financial transactions minant transaction, accounting for 92.3% of
were made using electronic savings accounts the total number of monetary transactions in
over the four quarter of 2017. Such transac- 2017. This figure is like the one reported in
tions amounted to a total of $285,907 mi- 2016, which reached 95.1%.
llion. For both cases, there was a reduction
compared to 2016 (8.0% and 6.6%11, res-
pectively). Payments continued to be the do- 11. Measured in real terms.
104
105
4.3. MEASURED pared to 2016, this indicator grew 129.9% for

total simplified-procedure savings accounts
IN REAL TERMS and 105.5% for those that were active.
By the end of 2017, 103 thousand adults had at The distribution of the number of accounts
least one simplified-procedure savings account by gender showed that 56.8%, 727,922 ac-
and both men and women had the same sha- counts, belonged to women while 43.2%, or
re (50%)12. In addition, 55.7% of adults with at 554,371 account, that belonged to men. This
least one active simplified-procedure savings represented an increase of 128.7% for accounts
account were between 26 and 40 years old, fo- belonging to women and of 140.4% for those
llowed by those who were between 41 and 65 linked to men, compared to 2016 (Chart 4.14).
years, who had a share of 32.7%. In the fourth quarter of 2017, 2.5 million
When analyzing the number of circulating transactions were made for a total amount of
simplified-procedure savings accounts, it was $498,956 millions. Compared to the same quar-
found that there were 1.2 million by the end ter of the previous year, the number of CATS
2017; this is 133.6% more than in 2016 (Chart transactions grew by 4.8% and the transacted
4.13). In turn, active simplified-procedure sa- amounts by 13.3% real terms (chart 4.15). Wi-
vings accounts were 583,411, which meant an thdrawals contributed the most to total tran-
increase of 108.9% compared to 2016. Althou- sactions and total transacted amount, with a
gh the number of simplified-procedure savings share of 39.4% and 45.0%, respectively. Alter-
accounts grew, their activity level went down natively, deposits recorded a reduction in terms
from 51.0% to 45.6% between 2016 and 2017. of the number of transactions, which went from
At the close of 2017, the total number of 386,864 to 280,511 between 2016 and 2017.
simplified-procedure savings accounts per
100,000 adults was 3,786 (1,725 for active 12. Financial institutions with CATS are sub-reporting the
simplified-procedure savings accounts). Com- number of adults with this product to TransUnion.
1,400,000
1,280,293 CHART 4.13

1,200,000 Total and active
number of CATS
1,000,000
800,000
583,411
600,000 547,985 Active CATS
Total CATS
400,000
279,342
200,000
0 Financiera de Colombia
2016 2017
106
CHART 4.14
Distribution of
CATS
554,371 43.2%
CATS men
CATS women
56.8% 725,922
CHART 4.15 1,200,000 $250,000
Transactions made
3
27
4,
22
through CATS
7
54
1,
98
1,000,000
$200,000
800,000
Amount transacted (in million)

Number of transactions:
Number $150,000
Amount
63
9
5,
600,000
57
$100,000
39
4
05
0,
,4
38
85
400,000
76
,9
12
70
,9
67
96 760
51
0,
,
44 275
28
$50,000
,3
200,000
Financiera de Colombia 0 $0
transfers
107
4.4. ELECTRONIC
DEPOSITS
By the end of 2017, 4.1 million adults had at
least one electronic deposit and 3.9 million
were active. Regarding the gender distribu-
tion, 56.0% of adults with an active electro-
nic deposit were women. Likewise, 45.9% of
adults with active electronic deposits were be-
tween 26 and 40 years old (Chart 4.16). Adults
aged 40 and over had a share of 33.8% on
the total number of adults with active electro-
nic deposits, while youth between 18 and 25
years old had a share of 16.9%.
Alternatively, the number of electronic de-
posits by the end of 2017 was 4.1 million (Ta-
ble 4.3), while the number of active electronic
deposits was 1.8 million, or 45.0% of the to-
tal13. The activity levels of electronic deposits
went from 41.6% to 45.0%, a 3.4 percentage
points increase between 2016 and 2017.
Compared to 2016, the number of electro-
nic deposits grew by 30.1%. Such increase
may be partially influenced by the adjustments
in the distribution of participants in Más Fa-
milias en Acción and Jóvenes en Acción, as
well as participants in the humanitarian aid
programs of Unidad de Víctimas.
In relation to the size of the adult popula-
tion in the country (33.8 million), there were
12,172 electronic deposits per 100,000 adults
and 5,473 active electronic deposits per
100,000 adults. These figures increased by
28.0% and 38.4%, respectively.
13. An independent analysis on electronic deposits of sim-

plified procedures is not carried out as they represent
98.8% of the total.
108
CHART 4.16 1,814,465

2,000,000
Number of people
1,800,000
with DE by age
1,600,000
1,334,464
1,400,000
1,221,952
18 to 25 1,200,000
26 to 40
963,528
1,000,000
41 to 65
Over 65
800,000
668,323
600,000
384,799
400,000
Source: TransUnion, 100,483 123,712 200,000

prepared by Banca de las
Oportunidades. 0
2016 2017
TABLE 4.3 Transactions made with DE
DE Simplified Procedures DE
Item 2016 2017 2016 2017
Number of DE 3,163,592 4,115,769 3,145,029 4,066,271
Number of
1,315,544 1,850,559 1,300,426 1,813,111
active DE
Amount
$820,698 $1,322,160 $820,851 $1,316,398
(millions)
109
3,000,000
CHART 4.17
2,783,060
Distribution of DE
by gender
2,500,000
2,000,000
DE women
1,593,151 1,570,441 DE men
1,500,000
1,332,709
1,000,000
500,000
0
2016 2017
3,000,000 700,000
CHART 4.18
63 69
Transactions made
3
0
15
11
2, 2,6
4,
8,
62
62
with DE
2,
600,000
4
53
2,500,000
6,
55
500,000
2,000,000
Transacted amount (in million)
400,000
Transacted amount (in million)
1,500,000
300,000
1,000,000
69
200,000
1,
18
6
9
04
97
5,
,
46
500,000
27
9
100,000
73
,4
4, 350
41
,
77
6
20
0 0 Financiera de Colombia
transfers
110
In 2017, more than half of electronic deposits

belonged to women, a share of 67.6% (2.7
million) (Chart 4.17). Over the last three years,
the number of electronic deposits of women
grew by 74.7%, on average, while those of
men decreased by 15.1%.
Regarding the number of financial tran-
sactions made through electronic deposits,
there was an increase in all types of tran-
sactions when comparing to the last quar-
ter of 2017 and 2016 (Chart 4.17). The total
number of transactions carried out with this
product in the last quarter of 2017 was close
to 6.5 million, while the transacted amount
was $1,322 million. This entails an increase
of 70.6% in the number of transactions and
a real growth rate of 54,1% in the transac-
ted amount.
In this regard, deposit operations ac-
counted for the majority of transactions in
both number (40.6%) and amount (47.1%),
surpassing withdrawals, which were the
main transaction over the last quarter of
2016. The transactions that grew the most
were payments, both in amount and number.
The transactions that grew the least were
sent transfers. Particularly, the increase in
the number of withdrawals (50.0%) and in
the amounts withdrawn (48.0%) was lower
than that of deposits, which grew in number
by 95.4% and 73.7% in transacted amount.
111
5
FINANCIAL
112
CHAPTER 5 | ACCESS AND USAGE OF CREDIT PRODUCTS
5.
ACCESS AND
USAGE OF CREDIT
PRODUCTS
A
ccess to credit products allows indi- of gross loan portfolios and number of ope-
viduals and households to get the ne- rations of credit institutions overseen by the
cessary means to meet their needs Superintendencia Financiera de Colombia1,
and respond to emergencies, as well as to financial credit unions overseen by the Su-
achieve their financial goals. This access also perintendencia de la Economía Solidaria, and
allows companies to adequately finance their NGOs specialized in microfinance.
activities at consumer loans stage of their bu-
siness life cycle.
This chapter conduct an analysis of ac- 1. Credit institutions are composed of banks, financing com-
cess and use, as well as the recent evolution panies, Financial corporations and financial credit unions.
113
1 The number of adults with consumer loans 2 The highest number of the various loans
product saw a positive evolution over the were mostly taken out by adults between the
past year for all types, except for mortgages. ages of 41 and 65, and there was an equal
share for both men and women.
Microcredits showed the highest increase.
Million of adults with

financial products
5�%
2�16 2�17 Share of adults Consumer loans 44%
with credit
Consumer loans 7.6 8
between 41 and Microcredit 53%
Credit card  9.2 65 years old
8.8 Mortgages 53%
Mortgages 1.11  1.09 Credit card 45%
Microcredits 3  3.3 +8.4%
3 The upward trend in the gross loan 4 The consumer loans portfolio showed a
portfolio and number of operations resulted positive evolution driven by payroll loans,
from the consumer loans, mortgages and all-purpose loans and credit cards, which
microcredit types. contribute most of the balance.
Gross loan portafolio Number of Consumer loans 2�16 2�17

(trillion) disbursements portafolio (trillion) 121 141
(millones)
458 2017 13.2 2017
9% 6% 4%
All-purpose Payroll
423 2016 12 2016 loans
Credit
loans card
5
Consumer
Consumer loans number of operations continued loans number of
2016 2017
their upward trend driven by banks, financing operation (millons) 9.6 10.8
companies and overseens by SES.
These number of operations were mostly found

in cities and urban agglomerations.
Women had a greater share at the national level

as to number, although at the department level
there were more departments with a larger
number of number of operations to men
66% 97% 51%
compared to women. Banks Cities and urban Women
agglomerations
114
6 7
The mortgages portfolio showed a favorable Even if banks made most mortgages number
behavior driven by mortgages and housing of operations at all rurality levels, financial
leasing - social interest housing (VIS, credit unions reached a significant share on
acronym in Spanish) in Real Value Unit (UVR, rural and dispersed rural municipalities.
acronym in Spanish), VIS in Colombian By gender, over half of the number of
Pesos, and no-VIS in Colombian Pesos. operations were made to men.
Número de desembolsos de
Mortagages 2�16 2�17
portafolio (trillion) vivienda (miles)
56 63
2�16 2�17 53%
183 186.3 Men
V I S 8% V I S 6% N O V I S 8% 91%
Banks
UVR $ $
92%
8 94% Cities Banks
The favorable behavior seen in the microcredit and urban
gross loan portfolio was based on the agglomerations 21%
dynamics of microcredits higher than 25 credit unions
0.9%
SMMLV (current legal minimum monthly wage, overseen by SES
Rural
in Spanish)2 and up to 120 SMMLV, although 12%
they held a third of the total balance. 0.2% Financial credit
Rurales dispersed unionsoverseen by SES
Cartera de 2�16 2�17
microcrédito (billones) 13,6 14,4
9
Just like other types, microcredit number of
11% operations increased in the number of transactions
compared to the preceding year. This evolution was
More than or equal
34% to 25 SMMLV
mostly driven by banks and NGOs specialized
in microfinance at all rurality levels in the
municipalities of the country.
10
Microcredit number of operations had a
greater share on several areas of the country At national level, women participated with over
than other types, being mostly made in half of the microcredit number of operations
rural and dispersed rural municipalities both in number and amount.
compared to other types.
Number of microcredit
Most departments had a greater number
disbursements (million) 2�16 2�17
of number of operations made in amounts 2.2
2.16
between 4 and 10 SMMLV.
58% 26%
Cities and urban intermediate
agglomerations municipalities 65% 56%
Banks Women
10% 6%
Rural Rural 28% 1%
dispersed NGO Companies
2. In 2017, 1 SMMLV was equivalent to COP 737,717.
115
5.1 GENERAL On the other hand, by late 2017, the age dis-
tribution of adults with credit products had a
ANALYSIS similar trend to the preceding year. In parti-
cular, across all types of loans, it was found
Adults and companies with that adults between the ages of 41 and 65 had
credit products the largest share on the total number of adults
with credit products, followed by adults be-
In 2017, the number of adults with credit pro- tween the ages of 26 and 40 (Table 5.1).
ducts had a positive evolution in most types, Finally, in 2017, the number of companies
in particular with regards to the number of with credit products increased for all types
adults with microcredits, which increased by of loans. The positive trend in the number of
8% between 2016 and 2017. The gender dis- companies with consumer loans is particular-
tribution marginally favors marginally men, ex- ly high, which increased by 12.7% between
cept for microcredits (Chart 5.1). 2016 and 2017 (Chart 5.2).
7.592.245 7.595.037 1.116.997 1.095.896 3.028.242 3.281.806 8.842.532 9.214.480 CHART 5.1
Number of adults
with loans by type
and gender
45% 46% 49% 48% 52% 50% 48% 49%
Women
Men
55% 54% 51% 52% 48% 50% 52% 51%
Source: TransUnion – Banca

2016 2017 2016 2017 2016 2017 2016 2017
Consumer Mortgage Microcredits Credit Card calculations.
116
TABLE 5.1. Distribution of the number of adults with products by age (2017)
Age Consumer loans Mortgage Microcredits Credit Card
range
2016 2017 2016 2017 2016 2017 2016 2017
18-25 681.119 699.368 15.219 13.415 207.919 224.171 775.380 813.553
26-30 994.606 965.939 95.786 82.753 309.077 314.406 1.188.598 1.158.714
31-35 993.050 1.076.293 174.914 175.035 341.979 379.186 1.186.862 1.261.957
36-40 968.597 1.026.696 207.186 208.694 374.731 399.670 1.179.465 1.230.316
41-45 820.678 854.482 174.315 171.592 377.792 397.406 1.004.332 1.031.449
46-50 830.983 846.679 160.522 154.571 408.962 429.256 1.011.669 1.017.117
51-55 701.404 757.550 120.807 121.543 357.982 399.327 850.710 909.579
56-60 578.770 608.164 84.814 83.575 283.125 312.933 669.131 705.764
61-65 406.260 440.349 47.397 48.089 184.804 211.515 427.584 466.658
66-70 292.552 318.810 24.461 24.905 113.350 129.875 273.970 301.230
71-75 174.745 197.181 8.275 8.628 47.646 58.544 154.011 175.086
More 75 145.436 164.844 3.296 3.083 19.555 22.984 117.629 135.464
Unidentified 4.045 18.682 3 13 1.320 2.533 3.081 7.593
Total 7.592.245 7.975.037 1.116.997 1.095.896 3.028.242 3.281.806 8.842.432 9.214.480
Source: TransUnion – Banca de las Oportunidades calculations.
117
CHART 5.2
100 Evolution of
94.6
the number of
91.1
companies with
90
82.1
83.9
82.6
credit products
(millions)
77.3
80
2014
2015
70 65.9
2016
61.1
2017
60
Thousand
50
40
30
20
13.2 14.6
10.5
9.2
10 Source: TransUnion
– Banca de las
Oportunidades
calculations.
0
Consumer Credit Card Microcredits
Gross loan portfolio Number of operations
Gross loan portfolio reached $458 trillion in 2017, The higher number of adults with credit pro-
and showed a real annual increase of 4.1%, dri- ducts is consistent with the increase in the
ven by consumer loans, mortgages and micro- number of operations. Including credit card
credits. In 2017, credit institutions contributed the operations, 13.2 trillion loans were disbursed,
most (91%) to the total gross portfolio. Consumer for a total amount of $105.7 trilllion; this be-
loans, mortgages and microcredits accounted for havior was mostly driven by consumer loans
48% of gross loan portfolio (Chart 5.3). and mortgages (Chart 5.4).
118
CHART 5.3
Gross loan portfolio 458
of credit institutions,
financial credit unions
overssen by SES, and
11.8%
NGOs specialized in Consumer
microfinance (trillion)
1%
8.0%
4.
Mortgage
423
2.1%
Microcredits
2016 2017
Share on gross loan portfolio by Share on gross loan portfolio by

type of lender (2017) type of loan (2017)
Banks
Financial credit unions 4%
overseen by SFC
overseen by SES 31%
Financing Companies
52%
Fondo Nacional del Ahorro
91%
NGOs specialized in microfinance 14%
3%
Commercial
Financiera de Colombia, Consumer
Superintendencia de la Economía Mortgage
Solidaria, and NGOs specialized
Microcredits
in microfinance.
119
Consumer loans, both in terms of the number of rations, and 71% of the total disbursed amount.
operations and disbursed amount, had the lar- Below is the individual characterization of con-
gest share, with 80% of the total number of ope- sumer loans, mortgages and microcredits.
13.2 105.7
CHART 5.4
Number of
operations and
disbursed amount
(consumer loans,
mortgages and
microcredit)
(Disbursed
amounts growth
rates in real terms)
12% 11%
Consumer Consumer
2% 9%
Mortgage Mortgage
12.0
92.5
2% 1%
Microcredits Microcredits
2016
2017
Number of disbursements Disbursed amounts

(millions) (trillions)
3. The total number of adults with credit cards have their cards with credit institutions.
120
Consumer Share by type of loan in

Share by type of loan in the
Mortgage the number of number of
disbursed amount (2017)
Microcredits operations (2017)
8%
18%
2% 20%
80% 71%
Superintendencia de la
Economía Solidaria, and NGOs
specialized in microfinance.
5.2 ANALYSIS
consumer loans held them with credit insti-
BY TYPED tutions (7.6 million)3.
The share of men and women with credit
CONSUMER LOANS cards was the same. Out of the 9.2 million
adults with credit cards, 51% were men and
Adults and companies with 49% women. Similarly, out of the 8.0 million
consumer loans adults with consumer loans, 54% were men
and 46% women.
LCredit products with the highest penetra- In 2017, the age distribution of adults with
tion among Colombians are credit cards and credit cards or consumer loans showed that
consumer loans. By the end of 2017, 9.2 mi- most adults with credit cards and consumer
llion adults had at least one credit card, and loans were between the ages of 41 and 65, for
8.0 million adults had consumer loans. Be- a share of 45% and 44%, respectively, followed
tween 2016 and 2017, the number of adults by adults between the ages of 26 and 40, with
with credit cards and consumer loans in- a 38% share for credit cards, and a 40% share
creased by 372,000 or 4%, and by 383,000 for consumer loans. This distribution remained
adults or 5%, respectively. Most adults with the same between 2016 and 2017.
121
122
CHART 5.5 Gross portfolio (trillion)

141
Consumer loans
gross portfolio
%
.8
11
Banks 121
overseen by SFC
overseen by SFC
Financing Companies 2016 2017
12%
5%
Share by type
of institution
82%
In addition, by the end of 2017, 95,000 com- with 82%, followed by financial credit unions
panies had consumer loans, and 91,000 overseen by SES with 12%, and financing
had at least one credit card. This repre- companies with 5% (Chart 5.5).
sents an increase of 10.6,000 companies The analysis by product shows that in 2017
(12%) for consumer loans, and an increase 36% of the total consumer loans gross port-
of 8,500 companies or 10%, between 2016 folio corresponded to payroll loans, followed
and 2017. by all-purpose loans and credit cards; this dis-
tribution has remained the same during the
Gross loan portfolio last two years (Chart 5.6). Nonetheless, these
products’ gross loan portfolio showed a lower
In 2017, total gross loan portfolio rea- real increase than others with a smaller sha-
ched $141 trillion (including financial credit re on the total balance (e.g., small consumer
unions overseen by SES), for a real increa- loans). Although this product contributed less
se of 11.8% relative to 2016. Out of this to- than 1% to the total consumer loans portfolio,
tal, banks contributed most of the balance, 2017 data shows a growing dynamic.
123
CHART 5.6
Share by financial product
Consumer loans
on the consumer loans
gross portfolio
gross portfolio
by product
1 2 3 4 5 6
36% 24% 22% 11% 5% 2%
Payroll Loan Unrestricted Credit Vehicle Revolving Other
Investment cards credit consumer
loans
Annual real increase in the consumer loans gross portfolio by product
Low-amount 391%
consumer loans
Other consumer loans 11%
All-purpose 9%
investment
Payroll Loan 6%
Credit cards 4%
Employees 2%
Vehicle 1%
Note: The “Other” category

Revolving credit 0% in the top left chart
includes: employee loans,
small consumer loans and
Source: Superintendencia Financiera de Colombia. other relate purchases.
124
Share by type of 3.4% 4.2%
institution in the
consumer loans gross
portfolio by product
96.6% 95.2%
Banks
Financing Companies
Payroll Loan All-purpose loan
11.7% 14.4%
88.2% 85.6%
Credit cards Vehicle
2.8% 1.6%
96.7% 98.4%
Revolving credit Other consumer loans
2.9%
100%
96.8%
Financiera de Colombia. Employees Low-amount consumer loans
125
By type of institution, banks contributed most der, by the end of 2017, 51% of the total
to the gross loan portfolio across all credit consumer loan operations were made to
products. However, as to auto loans and cre- women (Chart 5.7).
dit card gross loan portfolios, financing com- By institution, banks contributed 66% of
panies also stood out, with shares of 14% and the total number of operations and 76% of the
12%, respectively. total disbursed amount, followed by financial
credit unions overseen by SES, with a share
Number of operations of 30% on the number of operations and 20%
on the disbursed amount. This structure chan-
In 2017, 10.8 million consumer loan ope- ged as compared to 2016, when banks had a
rations were made for an amount of $76.2 75% share on the total number of operations
trillion, which corresponded to 12% in the and 82% in the disbursed amount, mostly
number of operations and 11% in the dis- due to a 1% drop in the number of number of
bursed amount compared to 2016. By gen- operations made by these institutions and a
Consumer loan operations by type of institution CHART 5.7

Disbursed amount
Consumer loan
Number of disbursements
operations
20%
30% 58% 55%
3% Banks
66% 1% 76% 3%
2% Financial credit unions
overseen by SFC

overseen by SES
Financing Companies
Consumer loan operations by gender
2016 2017
Greater share
Number (million) 9.6 10.8 51% for women
Amount (trillion) 65.8 76.3 58% Greater share

for men
Note: Information by gender is only available for the fourth quarter of 2017 and for credit and Superintendencia de la
institutions overseen by the Superintendencia Financiera de Colombia. Economía Solidaria.
126
58% increase among financial credit unions Furthermore, just like in 2016, most opera-
overseen by SES in terms of the number of tions were made in cities and urban agglome-
operations and a real increase of 55% in the rations, with a share of 97% on the number
disbursed amount. of operations, and 94.6% on the disbursed
In addition, 277 million purchases were made amount. Nonetheless, the increase in the sha-
with credit cards that amounted $69 trillion. This re on the number of operations of intermediate
represents a 9% increase in the number of ope- and rural municipalities and on the disbursed
rations, and a real increase of 6% in amounts amount of rural and dispersed rural municipa-
disbursed, as compared to 2016 (Chart 5.8). lities are to be highlighted (Chart 5.9).
CHART 5.8
Purchases with credit 2016 2017
cards (including
individual and
Number (million) 254 277
corporate cards)
Amount (trillion) 63 69
Number of
CHART 5.9 disbursements Amount disbursed
Distribution of 2016 2017 2016 2017
consumer loans
operations and Cities and urban
agglomerations 98.2% 97.0% 95.2% 94.6%
disbursements
by rurality
Intermediate 1.4% 2.4% 3.5% 4.0%
municipalities
Rural
municipalities 0.3% 0.4% 1.1% 1.1%
Financiera de Colombia Dispersed 0.1% 0.1% 0.2% 0.3%
and Superintendencia de la rural
127
During the last year, there was a widespread increased by 86%. Regarding the disbursed
increase in the number of operations across amount, there were increases of 7% and 11%
all rurality levels, particularly in the number of in intermediate and rural municipalities, res-
operations made in rural municipalities, which pectively (Chart 5.10).
0% 20% 40% 60% 80% 100%
CHART 5.10
Cities and urban
agglomerations
51% 44% 4% Distribution of
consumer loans
Intermediate 64% 12% 22%
municipalities operations and
Rural municipalities 59% 39% disbursements by
type of institution
Dispersed rural 75% 23%
and rurality
2016
Cities and urban

agglomerations 55% 39% 5%
27% Banks

municipalities 73% Financing Companies

Rural municipalities 69% 1% 29%
86% overseen by SFC
Dispersed rural 78% 1% 19% overseen by SES
49%
2017
Variation in number of
disbursements for rurality
Amount disbursed
0% 20% 40% 60% 80% 100%
Cities and urban 79% 9% 1% 10%

agglomerations
Intermediate 78% 1% 5% 16%

municipalities
Rural municipalities 65% 32%
Dispersed rural 82% 4% 14%
2016
Cities and urban 73% 9% 1% 17%

agglomerations -6%

municipalities 7%
Rural municipalities 57% 40%
11% Financiera de Colombia
Dispersed rural 75% 4% 21% Economía Solidaria.
11%
2017 Variation in the amount of
128
In 2017, across all rurality levels, banks con- bursed amount, men’s share was above
centrated the largest number of operations 55% (Chart 5.11).
and disbursed amounts. However, financial By region, in 2017, 67% of consumer loans
credit unions overseen by SES share on rural operations were made in three departments.
and dispersed rural municipalities continued Specifically, 38% loans were disbursed in Bo-
to stand out among others, which is seen in gotá, D.C.; 20% in Antioquia; and 9% in Valle
the increase in their share between 2016 and del Cauca.
2017 in terms of disbursed amount. By gender, by the end of 2017, in 22 of the
As to the gender distribution of clients 33 departments in the country (including Bo-
receiving consumer loans, by late 2017, gotá, D.C.), men had a higher share on the
women’s share was higher than men’s only number of operations (Map 5.1). It is worth
in terms of the number of operations in ci- highlighting that, by the end of 2017, the gen-
ties and urban agglomerations, with 51% der distribution of Bogotá, D.C., Cesar, Sucre,
of the total. Regarding the other rurality le- Valle del Cauca and Vaupés had reverted as
vels, both in terms of operations and dis- compared to 2016 (Map 5.1).
Number of
disbusements Amount disbursed
CHART 5.11
2016 2017 2016 2017
Distribution of
consumer loans
Cities and urban
operations and agglomerations
disbursements by 51% 51% 60% 58%
gender and rurality

Intermediate
municipalities
Greater share for women
56% 56% 61% 60%
Greater share for men

Rural
municipalities
58% 59% 61% 60%
Dispersed
rural
54% 55% 60% 63%
and Superintendencia de la Note: Information by gender is only available for the fourth quarter of 2017 for credit
Economía Solidaria. institutions overseen by the Superintendencia Financiera de Colombia.
129
MAP 5.1 From 0 to 0.5%
Share on consumer >to 0.5% and up to 1%
loans operations by >to 1% and up to 1.5%
department in 2017 >to 1.5% and up to 2%
>to 2% and up to 4%
>to 4% and up to 10%

Concentration
of the number of
consumer loans
operations by
department
130
Greater share
for women
Greater share
for men
Concentration
of the number of
operations
by department
and gender
Note: Information by gender

is only available for the
fourth quarter of 2017 for
credit institutions overseen
by the Superintendencia
131
MORTGAGES youth between 18 and 25 only accounted for

1.2% of adults with mortgages. Most adults
Adults and businesses with mortgages (1.08 million) took out their
with mortgages loans from credit institutions.
By the end of 2017, nearly 1.09 million adults Gross loan portfolio
had mortgages. Between 2016 and 2017, Total gross loan portfolio by the end of
this number dropped by 21,000 adults, that 2017 amounted $63 trillion, for an increase
is, 1.9%. Additionally, 52% of adults with of 8.0% compared to 2016. Out of this total,
mortgages were men. By age range, 95% of banks’ share reached 87.5% (Chart 5.12).
adults with this credit product were between When analyzing the different mortgages
26 and 65 years old. On the other hand, products, during 2017, the highest share
Gross mortgages portfolio of institutions

overseen by the Superintendencia CHART 5.12
Financiera de Colombia (trillion) Mortgages portfolio
63
Banks
56
8%

overseen by SFC
overseen by SES
Financing Companies
2016 2017
Share on the 2.1%

mortgages gross
9.2%
loan portfolio by
institution
87.5%
132
was observed in the mortgages and so- employee’s social interest housing loans, and
cial interest housing leasing in Real Value of 8% in the gross loan portfolio of mortga-
Units (UVR, for its Spanish acronym), with ges and non-social interest housing leasing
65% of the balance, followed by mortga- in Real Value Units.
ges and Social Interest Housing (VIS, for As for almost all products in the mortgage
its Spanish acronym) leasing in Colombian category, banks contributed to most of the
Pesos, with a share of 15%, and mortga- gross loan portfolio. However, as to loans and
ges and non-social interest housing leasing social interest housing leasing in Real Value
in Real Value Units, with a share of 10% Units and non-social interest housing leasing
(Chart 5.13). in Real Value Units, the Fondo Nacional del
Between 2016 and 2017, there was a 20% Ahorro concentrated 35% and 38% of their
real increase in the gross loan portfolio of gross loan portfolio, respectively.
133
Share by financial product CHART 5.13

on the mortgages gross Mortgages gross
loan portfolio loan portfolio
by product
1 2 3 4 5
65% 15% 10% 8% 3%
Mortgage and housing Mortgage and housing Mortgage and housing Mortgage and housing
Others
leasing non-VIS Colombian leasing VIS Colombian leasing VIS UVR leasing non-VIS UVR
Pesos Pesos
Note: The “Other” category in the top chart includes: employees’ non-social interest housing loans, employees’ social
interest housing loans, non-social interest housing payroll loans, and social interest housing payroll loans.
Annual real increase on the mortgages gross loan portfolio by product
Employee loan
housing non-VIS 6%
Employee loan housing VIS 20%
Payroll loan housing non-VIS -3%
Payroll loan housing VIS -6%
Mortgage and housing leasing

non-VIS Colombian Pesos 8%
Mortgage and housing 2%

leasing non-VIS UVR
Mortgage and housing leasing 6%

VIS Colombian Pesos
Mortgage and housing

8% Source: Superintendencia
leasing VIS UVR
134
Distribution of the mortgages gross loan portfolio by product and type of institution
9%
35%
Mortgage
Mortgage and and housing
housing leasing leasing VIS
VIS UVR Colombian
Pesos
61% 88%
3%
38%
Mortgage and Mortgage and

housing leasing housing leasing
non-VIS UVR non-VIS Colombian
Pesos
97%
62%
2%
Payroll loan Payroll loan

housing VIS housing non-VIS 100%
98%
3% 4%
Employee loan Employee loan

housing VIS housing non-VIS
96%
97%
Financial credit
Banks Financing Companies union overseen by Fondo Nacional del Ahorro
SFC
135
Number of operations (81% and 91%, respectively). Also, the Fon-

do Nacional del Ahorro’s share was relevant,
In 2017, 186,300 mortgage operations were contributing to 11% of the total number of
accounted for, equivalent to $21.4 trillion, operations and 5% of the disbursed amount.
for an increase of 2% in terms of the number Although banks made most operations
of operations, and a real increase of 9% in by the end of 2017, this figure had drop
disbursed amount compared to 2016. By gender, 3% relative to 2016. On the other hand, the
over half of the number of operations, both in number of operations made by the Fon-
terms of the number of operations and disbursed do Nacional del Ahorro and financial cre-
amount, were made to men, with shares of 53% dit unions overseen by SES were dynamic,
and 58%, respectively (Chart 5.14). increasing by 39% each. This was also the
By type of institution, banks concentrated case for their disbursed amount, which ex-
most of operations and disbursed amount hibited a real increase of 29% for the Fondo
Mortgages operations by type of institution
Number of disbursements Disbursed amount CHART 5.14

(share and growth) (share and growth) Mortgages
operations
2%
4%
5%
39% 27%
11%
3% 9% Banks
81% 91% overseen by SFC
overseen by SES
39% 29% Financing Companies
Mortgages operations nationally and by gender
2016 2017
Numbers (thousands) 183 186.3 53%
Greater share
for men
Amount (millions) 18,9 21.4 58%
Note: Information by gender is only available for the fourth quarter of 2017 for credit and Superintendencia de la
institutions overseen by the Superintendencia Financiera de Colombia. Economía Solidaria.
136
Nacional del Ahorro and 27% for financial and urban agglomerations, intermediate and
credit unions. dispersed rural municipalities (Chart 5.15).
With regards to the distribution of mortgages By type of institution, just like in the case of
operations by rurality, even if most operations consumer loans, banks reported a higher sha-
were made in cities and urban agglomerations, re compared to other types of institutions both
in 2017 the percent contribution of both the in the number of operations and in disbursed
number of operations and disbursed amount in amount. Nevertheless, in rural and dispersed
intermediate municipalities increased. rural municipalities, the share of other institu-
In 2017, the number of mortgages ope- tions such as financial credit unions have in-
rations increased across all rurality levels, creased by the end of 2017. The former had a
particularly those made in intermediate mu- 21% share on rural municipalities and 12% in
nicipalities, which experienced a growth rate dispersed rural municipalities in terms of the
of 81%. Disbursed amount increased in cities total of number of operations (Chart 5.16).
CHART 5.15 Number of

disrbursement Amount disbursed
Distribution
mortgages 2016 2017 2016 2017
operations and
disbursed amount
Cities and 96.3% 94.0% 97.1% 96.3%
by rurality level agglomerations
Intermediate
2.9% 5.0% 2.3% 3.0%
municipalities
Rural 0.7% 0.5%

0.9% 0.6%
municipalities
Source: Superintendencia Dispersed 0.2% 0.2% 0.1% 0.1%

Financiera de Colombia rural
137
0% 20% 40% 60% 80% 100% CHART 5.16

Distribution of
Cities and 92% 3%
agglomerations the number and
disbursed amounts
Intermediate 83% 7%
of mortgages by
type of institution
Rural 89% 5%
and rurality level
2016
Banks
Cities and 92% 4% Financing Companies

agglomerations 4%
overseen by SFC
Intermediate 90% 4% Financial credit unions
81% overseen by SES
Rural 75% 21%

44%

5%
2017 Growth rate in number of
disbursements for
rurality
Disbursed amount
0% 50% 100%
Cities and 94% 2%

agglomerations
Intermediate 89% 6%
Rural 93% 4%
2016
0% 20% 40% 60% 80% 100%
Cities and 96% 2%

agglomerations 12%
Intermediate 93% 4%
50%
Rural 89% 8%
31% Financiera de Colombia
and Superintendencia de
Dispersed rural 93% 1% la Economía Solidaria.
18%
2017
Real growth rate of
the amount of
disbursements for
rurality
138
By late 2017, the distribution of mortgages made in three departments: 35% in Bogotá,
operations by gender shows that most of the- D.C.; 14% in Antioquia; and 11% in Valle del
se were made to men in cities and rural munici- Cauca. The distribution of mortgages favo-
palities, whereas in intermediate and dispersed red men in 24 of all 33 departments in Co-
rural municipalities loans made to women pre- lombia (including Bogotá, D.C.). By the end
vailed. Nonetheless, across all rurality levels, of 2017, the gender distribution of Bolivar,
amounts disbursed were higher among men Cauca, La Guajira, Norte de Santander, Su-
for both 2016 and 2017 (Chart 5.17). cre, Putumayo and Amazonas had reverted
The distribution of mortgages operations relative to 2016 (Map 5.2).
by department shows that most of them were
Number of Disbursed amount

disbursement
2016 2017 2016 2017

CHART 5.17
Distribution
of mortgages Cities and
agglomerations
operations 54% 54% 60% 58%
by gender by
rurality level
Intermediate
Greater share for women 58% 53% 58% 53%
Rural
56% 56% 54% 57%
Dispersed
rural
52% 54% 56% 51%
and Superintendencia de la Note: Information by gender is only available for the fourth quarter of 2017 for credit
Economía Solidaria. institutions overseen by the Superintendencia Financiera de Colombia.
139
Share on mortgages >to 0.5% and up to 1%
operations by >to 1% and up to 1.5%
department in 2017 >to 1.5% and up to 2%
>to 2% and up to 4%

Concentration
of the number
of mortgages
operations by
department
Source: Superintendencia Financiera de

Colombia and Superintendencia de la
140
More participation of woman
More participation of man
Without disbursements
Concentration
of the number
of operations
by department
and gender
Note: Information by gender is only available for

the fourth quarter of 2017 for credit institutions
overseen by the Superintendencia Financiera
de Colombia.
141
MICROCREDITS Additionally, by the end of 2017, 15,000 bus-

siness had microcredits. This represents an
Number of adults and businesses increase of 1,428 companies (11%) between
with microcredits 2016 and 2017.
By the end of 2017, almost 3.3 million adults Gross loan portfolio
had microcredits. This figure increased by
254,000 adults, or 8% compared to 2016. By Total gross loan portfolio reached $14.4 trillion by
type of institution, it was found that 2.6 mi- the end of 2017 (including financial credit unions
llion adults had microcredits with credit ins- overseen by SES and NGOs specialized in micro-
titutions, 801,000 with NGOs specialized in finance). Between 2016 and 2017, this amount
microfinance, and 155,000 with financial cre- increased by 2.1% in real terms (Chart 5.18).
dit unions overseen by Superintendencia de Credit institutions overseen by the Superin-
la Economía Solidaria4. tendencia Financiera de Colombia concentrated
The distribution of these 3.3 million adults 84% of the total microcredit gross loan portfo-
by gender is the same for men and women lio, NGOs specialized in microfinance 10% and
(50% each). Just like other types of credit pro- financial credit unions overseen by SES 6%.
ducts, most adults with microcredits were be-
tween 41 and 65 years old, a share of 60%,
followed by those between the ages of 26 and 4. It is to consider that this data did not include individuals
40, with a share of 33%. with business establishments.
Microcredit gross CHART 5.18

loan portfolio Microcredit
(trillions) portfolio
14.4
1%
2.
13.6
2016 2017
142
Share by
institution in the
microcredit gross
loan portfolio
10%
Banks
6%
overseen by SFC
overseen by SES
Financing Companies
NGOs specialized in microfinance

82%
Share by balance in the

microcredit portfolio of
Banks 97%
institutions overseen by the
Superintendencia Financiera
11%
de Colombia
Less than or equal to 25 SMMLV

34%
> to 25 SMMLV and
up to 120 SMMLV
66%
Superintendencia de la Economía
Solidaria, and NGOs specialized
97% Banks
in microfinance.
143
Number of operations specialized in microfinance, with the former in-

creasing by 11%, and the latter decreasing 13%
In 2017, 2.2 million microcredit operations between 2016 and 2017. By disbursed amount,
were made, equivalent to $8 trillion, for an in- both types of institutions had the largest con-
crease of 2% in number, and a real 1% drop tribution, with bank concentrating 70% of total
in amount compared to 2016. By gender, wo- disbursements and NGOs specialized in micro-
men had the highest share receiving 56% of finance 19%. However, compared to 2016, dis-
number of operations, while men had 43% bursed amounts by these institutions dropped in
and companies 1%. Likewise, 49% of the dis- real terms by 1% and 3%, respectively.
bursed amount was received by women, 46% Out of the total number of microcredit
by men and 6% by companies (Chart 5.19). operations made by institutions overseen by
Regarding the total number of operations, the Superintendencia Financiera de Colom-
65% were made by banks and 28% by NGOs bia, 71% were 366 to 1095-days term mi-
Distribution of microcredits by type of institution

CHART 5.19
Number of disbursements Disbursed amount Microcredit
(share and growth) (share and growth) operations
11%
1%
19%
28%
8%
13%
3%
70% Banks
6% 65%
overseen by SFC
3%
2% Financial credit unions
overseen by SES
Financing
Companies
Distribution of microcredit operations and disbursed amount nationally and by gender
NGOs
2016 2017
Greater share
Numbers (thousands) 2.16 2.2 56% 1% for women
Amount (millions) 7.8 8 49% 6% Companies' share
Superintendencia de
Note: Information by gender is only available for the fourth quarter of 2017 for credit and NGOs specialized in
institutions overseen by the Superintendencia Financiera de Colombia. microfinance.
144
crocredits, and 24% were 31 to 365-days rural and dispersed rural municipalities com-
term microcredits. As to the size of number pared to other types because, even if 58% of
of operations, just like in 2016, 30% corres- the number of operations and of the disbursed
ponded to disbursements equal to or higher amount were found in cities and urban agglo-
than 4 minimum wages and lower than 10 merations, 16% of the number of operations
minimum wages (Chart 5.20). and 20% of the disbursed amount correspon-
The distribution by rurality level of micro- ded to rural and dispersed rural municipali-
credit operations showed a greater share on ties. It is found that, compared to 2016, there
CHART 5.20
Microcredit
operations by 5%
Share on the number of
term and size 24%
microcredit operations
by institutions overseen
by the Superintendencia
71%
From 31 to 365 days Financiera de Colombia by
From 366 to 1.095 days term (2017)
From 1.096 to 1.825 days
More than 1.825 days
4% 15%
Less than 1 SMMLV 15% Share on the number of
From 1 to < 2 SMMLV microcredit operations
From 2 to < 3 SMMLV 16% by institutions overseen
From 3 to < 4 SMMLV by the Superintendencia
30% Financiera de Colombia by
From 4 to < 10 SMMLV
16%
From 10 to < 25 SMMLV disbursement size (2017)
5%
> 25 SMMLV to < 120 SMMLV
145
was an increase in the share on the number channeled by banks and NGOs specialized
of operations in intermediate municipalities in microfinance across all rurality levels. Si-
and in the disbursed amount in dispersed ru- milarly to 2016, the share of NGOs spe-
ral municipalities (Chart 5.21). cialized in microfinance on the number of
Both the number of operations and the operations in rural and dispersed rural mu-
disbursed amount increased across all ru- nicipalities was 37%, and on the disbursed
rality levels. Just like in 2016, the number of amount in dispersed rural municipalities of
operations and the disbursed amount were 35% (Chart 5.22).
Number Amount
CHART 5.21
2016 2017 2016 2017
Share on
microcredit
operations by
59% 58% 58% 58% rurality
Cities and
agglomerations
25% 26% 23% 22%
Intermediate
11% 10% 12% 12%
Rural
6% 6% 7% 8%
Dispersed rural
Superintendencia de
and NGOs specialized in
microfinance.
146
Number of operations
CHART 5.22
Distribution of 0% 20% 40% 60% 80% 100%
Cities and
the number 66% 28% agglomerations
of microcredit
operations and 65% 29% Intermediate
disbursed amount
by type of institution 47% 41% Rural
and rurality
57% 36% Dispersed rural
Banks 2016
Financing Companies Cities and

70% 22% agglomerations
4%
overseen by SFC
Financial credit unions 72% 25% Intermediate
overseen by SES 7%
NGO
59% 37% Rural
1%

7%
2017
Growth rate in number of
Disbursed amount
0% 20% 40% 60% 80% 100%
78% 14% Cities and

agglomerations
74% 19% Intermediate
65% 23% Rural
2016
76% 13% Cities and

agglomerations
3%
Source: 77% 18% Intermediate

2%
Superintendencia
Financiera
75% 21% Rural
de Colombia, 1%
Superintendencia
de la Economía 80% 19% Dispersed rural
Solidaria, and 6%
2017
NGOs specialized in Real growth rate in the
amount of
microfinance. disbursements for rurality
147
148
Just like in 2016, in 2017 women had the hi- Additionally, in 29 of all 33 departments (inclu-
ghest share on the number operations (61%) ding Bogotá, D.C.) women’s share on the total
and disbursed amount (53%) in cities and ru- number of operations was greater than that of
ral agglomerations. Regarding the evolution of men. Comparatively, by the end of 2016, mi-
businesses, even though they concentrated crocredit operations to women were higher in
between 1% and 3% of total operations, they all departments but Norte de Santander.
contributed to 10% of the disbursed amount in In 2017, there was a higher concentration
rural and dispersed rural municipalities during of microcredits for disbursed amounts be-
the last two years (Chart 5.23). tween 4 minimum wages and 10 minimum
Department wise, the distribution of the wages among 24 of all 33 Colombian depart-
number of microcredit operations exhibited ments (including Bogotá, D.C.) (Map 5.4).
homogeneous trend compared to other cre- Finally, by the end of 2017, the five depart-
dit products. Particularly, the five departments ments accounting for the highest share on total
concentrated 39.3% of total operations: 9.8% microcredit operations geared toward busines-
in Antioquia; 8% in Valle del Cauca; 7.8% in ses were as follows: Antioquia (18.5%); Bogo-
Santander; 7.2 % in Nariño; and 6.5% in Bo- tá, D.C. (9.6%); Boyaca (9.6%); Cundinamarca
gotá, D.C. (Map 5.3). (8.2%); and Valle del Cauca (6%) (Map 5.4).
CHART 5.23 Number of operations Disbursed amount
Distribution 2016 2017 2016 2017

of microcredit
operations and
disbursed amounts
by gender and Cities and
agglomerations
61% 1% 61% 1% 52% 5% 53% 4%
rurality level
Greater share for women 6%

51% 1% 51% 1% 49% 7% 48%
Intermediate
Companies' share 54% 3% 53% 2% 53% 10% 52% 10%

Rural
Financiera de Colombia, 54% 3% 53% 3% 53% 10% 53% 10%
Dispersed rural
Superintendencia de
and NGOs specialized in Note: Information by gender and companies is only available for the fourth quarter of 2017
microfinance. for credit institutions overseen by the Superintendencia Financiera de Colombia.
149
Share on >to 0.5% and up to 1%
microcredit >to 1% and up to 1.5%
operations by >to 1.5% and up to 2%
department >to 2% and up to 4%

>to 4% and up to 6%
in 2017
>to 6% and up to 8%
Distribution of the number

of microcredit operations
by department
Source: Superintendencia Financiera

de Colombia, Superintendencia de la
Economía Solidaria, and NGOs specialized
in microfinance.
150
Greater share for women
Distribution of the
number of operations by
department and gender
Nota: Information by gender and companies

is only available for the fourth quarter of
2017 for credit institutions overseen by the
Superintendencia Financiera de Colombia
151
MAP 5.4 > 1 SMMLV up to 2 SMMLV
Distribution > 2 SMMLV up to 3 SMMLV
of microcredit > 3 SMMLV up to 4 SMMLV
operations towards > 4 SMMLV up to 10 SMMLV
businesses by > 10 SMMLV up to 25 SMMLV

> 25 SMMLV up to 120 SMMLV
disbursement size
by department
Highest share by
disbursement size
by department
152
From 0 to 0.5%
>to 0.5% and up to 1%
>to 1% and up to 1.5%
>to 1.5% and up to 2%
>to 2% and up to 4%
>to 4% and up to 6%
Concentration of the
number of microcredit
operations to companies
by department
153
6
FINANCIAL
154
CHAPTER 6 | ACCESS AND USAGE OF INSURANCE
6.
ACCESS AND
USAGE
OF INSURANCE
I
nsurance plays a significant role in fi- Vision 2025, a strategy developed at the Su-
nancial inclusion strategies as they ena- perintendencia Financiera de Colombia, esta-
ble families to mitigate external shocks, blishes inclusion, reliability, competitiveness
smoothen consumption, protect savings and and sustainability principles aimed at the con-
improve management of expenses related to solidation of a comprehensive insurance mar-
uncertain events such as medical emergen- ket. As an initial measure, it sought to diversify
cies, decease, theft or natural disasters. Gi- mass- and micro-insurance commercialization
ven its relevance, the insurance sector has channels, so they would contemplate sim-
fostered not only the creation of products plified and low-cost transactional channels,
accessible and affordable to low-income such as the use of insurance networks and
segments of the population, but it has also correspondents. Furthermore, it promoted
designed innovative products that respond the design of simple and expedite products in
to the specific needs of clients. terms of subscription and payment of claims,
155
by allowing products meeting the criteria of to the ninth part of 1 SMMLV1. The chapter
simplicity, universality and standardization, analyzes the performance of the Colombian
to be commercialized through correspon- insurance industry as a relevant component
dents. Lastly, it enabled the commercializa- for financial inclusion, by identifying advance-
tion of mass products by eliminating some ments, opportunities and challenges per type
client-characterization obligations to insuran- of insurance, policies and commercialization
ce companies, for insured amounts below 135 channels. It presents main sector figures, an
minimum monthly legal salaries (SMMLV - for overview of the Colombian insurance market
its Spanish acronym) and a maximum bi-mon- and relevant information on fostering insuran-
thly premium payment of less than or equal ce for inclusions.
MAIN FIGURES, 2017
Annual growth of newly issued premiums2 was 16%:

Personal Insurance 30% and General Insurance 4%.
The percent increase in the number of insurance policies related to financial in-
clusion (onwards, insurance for inclusion)3 is 14%:
Insurance policies for inclusion represent 31% of issued premiums:

1 These dispositions are published in Decreto 034 of 2015 and the Circulares Externas 049, 034 and 050 of 2015 of the
Superintendencia Financiera de Colombia.
2 It relates to revenues on the sale of insurances carried, accounting for annulments and cancellations and including coinsurance.
3. Classification of policies for financial inclusion survey of the SFC - Circular letter 91 of 2017:
- Personal Insurance: Funeral expenses, Accidents, Group Voluntary Life, Group Debtors Life Insurance, Individual Life In-
surance, Periodic Financial Benefits and Unemployment.
- General Insurances: Fire, Earthquake, Theft, Home and Agroindustry.
156
Insurance penetration (issued premiums/GDP) stood at 2.8%:

Personal Insurance 1.5% and General Insurance 1.3%.
Insurance density4 in Colombia (expenses per capita) is $530,386:

Personal Insurance $274,854 and General Insurance $255,533
Women represent 44% of the total number of insurance policies for financial
inclusion in the system: Personal Insurance 48% and General Insurance 17%.
The claims ratio5 by the end of 2017 was 50%:

The claims ratio of insurance policies for inclusion stood at 24%:

The cancellation rate6 of insurance policies for inclusion was 28%:

The rate of objections7 of insurance policies for inclusion was 24%:

4. Issued premiums as a proportion of total population as of December 2017 Source of Data: DANE
5. The claims ratio is the percentage of claims costs incurred in relation to the premiums earned.
6. The number of accrued cancellations as a proportion of the number of effective accrued policies enables knowing the
business index that complete coverage before their expiration date.
7. Objection refers to the no-payment of claims on the basis of absence of responsibility.
157
1 The accrued total value of issued premiums 2 Within the segment of insurance for
of insurance policies for financial inclusion inclusion, 29.7% of policyholders paid
reached $8 trillion, with a 31.3% share on a monthly premium of less than $20,000.
total production of the insured sector. This The most affordable insurance policies were
represents a 9.5% annually in real terms increase funeral expenses, personal accidents,
and 14% nominal annual increase, which is 2 Periodical Economic Benefits (BEPS, for
percentage points below the industry growth its Spanish acronym), unemployment, theft
levels of 2016.frente al 2016. and payment protection insurance.
9.5%
29.7%
2�17
28.0%
31%
2�16
2�16 2�17
3 The use of networks of credit institutions 4 In the market of insurance for inclusion,
overseen by the Superintendencia Financiera the number of policyholders acquiring
de Colombia, was the most representative insurance policies different from
distribution channel for the commercialization payment protection or mandatory
of insurances in Colombia, representing policies increased. These correspond
37.9% of total policyholders, followed by to voluntary insurances related to theft,
individual brokers (23.1%) and insurance personal accidents and unemployment.
intermediaries (17.3%). The channels
experienced the fastest growth rate of Percent share by
policyholders were public utility companies type of insurance
(194%) and electronic mediums, mobile 5.2%
devices and Internet (66%). 58.7%
37.9% 40.4% 3.8%

194%
23.1%
2�16 2�17 2�16 2�17
Group payment Theft
Public utility
17.3% protection insurance
companies
20.8% 12.8%
66%
16.5% 5.9%
2 1 3 Electronic
channels,
mobile
Individual Commercialization Insurances devices and 2�16 2�17 2�16 2�17
brokers of insurances intermediaries Internet Personal accidents Unemployment
158
5 The share of women with access to insurance 6 The share of people using formal financial
policies for inclusion increased by 2.2 pp, insurance services increased by 2.3 pp.
vis-à-vis the previous year. Likewise, in the between 2016 and 2017. This trend is
case of policies covering fire damages, theft, also seen in rural areas.
home property damage and unemployment, as well
payment protection insurance policies, there was an
increase in women’s share in the microfinance Rural areas
institutions and networks channels. participation
44.2% 15.3%
42.0% 11.0%
2�16 2�17 2�16 2�17

Personal insurance policies
for financial inclusion
7 The segment of insurance for inclusion

had a claims ratio of 23.8%, 1.3pp less
compared to 2016 and 26.3pp below
12.8%
industry levels.
11.0%
30% 27%
14% 16%
2�16 2�17 2�16 2�17 2�16 2�17

Personal insurance General insurance General insurance
policies for financial for financial inclusion for financial inclusion
inclusion aimed at
individuals
51% 50%
13.5%
11.2%
25% 24%
2�16 2�17 2�16 2�17 2�16 2�17

Insurance policies for Insurance Insurance for financial
financial inclusion, total industry total inclusion, total
159
6.1. PERFORMANCE neral insurance policies, which amounted

$12.5 trillion (48.2%). Similarly, per capita
OF THE COLOMBIAN insurance expenditures grew by 52.5% an-
INSURANCE MARKET nually in real terms, standing at $530,386
(Chart 6.2).
According to Fundación Mapfre, insurance On the other hand, the claims ratio
penetration8 in Latin America is 3%, which is (the percentage of claims costs incurred in
low when compared to that of more develo- relation to the premiums earned), showed
ped economies, 7%. This makes Latin Ame- a favorable behavior, moving from 51% in
rica a key market for the insurance industry9. 2016 to 50.4% in 2017.
Particularly, throughout 2018, the global insu- Furthermore, administrative and personnel
rance industry is expected to grow, especially costs decreased by 1.8% annually in real ter-
among emerging economies10. ms and commercialization costs decreased in
Colombia still needs to increase insu- real terms by 11.9%, resulting in an expenses
rance penetration, which is close to 2.75%, factor of 29.9% as of December 2017.
even though the Colombian insurance mar- Lastly, the sector had earnings amounting
ket has grown in the past few years through to $1.9 trillion, a 2.9% annual increase in real
the innovation of products and diversifica- terms. Industry's profit is backed, in part, by
tion in commercialization channels. the results of its investment portfolios.
During the past five years, the penetra-
tion index in Colombia grew from 2.65% to
2.75% (Chart 6.1). During that same period,
issued premiums grew at an annual real rate 8. Issued premiums as a share of GDP.
of 4.7%, totaling $26 trillion in 2017, dri- 9. Source: "El Mercado asegurador colombiano". Fundación
ven mainly by life insurance policies, which Mapfre, 2017.
contributed $13.5 trillion (51.8%), and ge- 10. Source: Mapfre Study Services, 2017.
160
CHART 6.1 4.0%

Historical insurance
penetration
3.0%
Individuals
Total indutry 2.79% 2.75%

2.65% 2.69%
General 2.52%
Latin America average
2.0%
1.0%
and Fundación Mapfre 0.0%
2013 2014 2015 2016 2017
$600,000
CHART 6.2
Historical insurance $530,386
$497,594
density11
$448,986
Total industry $400,242
$397,184
$400,000
Individuals
General
$200,000
$0
and Fundación Mapfre
2013 2014 2015 2016 2017
11. Per capita premiums, measured in Colombian Pesos (COP).
161
CHART 6.3
Historical Result
9.2% 9.3%
Technical result /
6.8%
accrued premiums
5.6%
Result for the year /
accrued premiums 3.0%
-9.1%
-11.3% -11.6%
-11.9%
-14.0%
2013 2014 2015 2016 2017
CHART 6.4 14.9%

14.5%
Historic return on equity
(ROE) and return on
assests (ROA)
ROE 10.8% 10.8%

2.9%
ROA
2.7%
2.5%
2.1%
6.0%
1.4%
2013 2014 2015 2016 2017
162
6.2. INSURANCE FOR de Colombia carried out a survey to insurance

companies overseen by it, seeking to obtain
FINANCIAL INCLUSION12 information on the usage of insurance pro-
Microinsurance Network13 launched its most ducts by the population, breaking them down
recent publication on the overview of mi- by gender and commercialization channels.
croinsurance in Latin America and the Carib- For purpose of this chapter, the Superinten-
bean14 Colombia is reported to cover 12.5%15 dence identified information related to these
of its market target for microinsurance (i.e., policies and exhibits such information grou-
those with a daily income between US $1.90 ped insurance for inclusions, as follows.
and US $4). Countries with the best cove-
rage were Peru and Ecuador (over 12.5%),
followed by Mexico, Colombia and Chile,
which had a penetration rate fluctuating be- 12. The information presented in this chapter, refers to figures
tween 10% and 12.5%. provided by insurance companies as per Circular Letter
In Colombia, although there is not a spe- 91 of 2017 - Superintendencia Financiera de Colombia.
cific regulatory framework defining inclusive 13. Microinsurance Network is a global platform for professio-
insurances or microinsurance, Circular Letter nals and organizations, which commit to making insuran-
91 of 2017 issued by the Superintendencia ce products inclusive. This network has the involvement
Financiera de Colombia defined 12 principles of over 70 organizations and 30 individual members in
deemed important for the promotion of finan- 30 countries around the world. https://www.microinsu-
cial inclusion per characteristics such as the rancenetwork.org
insured risk, commercialization channels and 14. Microinsurance Network (2017). The Landscape of Mi-
insurance pricing. The policies defined were: croinsurance in Latin America and the Caribbean 2017.
Funeral expenses, Accidents, Group Voluntary The World Map of Microinsurance. Final report.
Life Insurance, Group Debtors Life Insuran- 15. People living with US$1.9 to US$4 per day and have a mi-
ce, Individual Life Insurance, Periodic BEPS croinsurance / people living with US$1.90 and US$ per day.
and Unemployment16, fire, earthquake, theft, 16. In the insurance section for financial inclusion, the clas-
home and agroindustry. Through such Cir- sification of personal insurance includes the unemploy-
cular Letter, the Superintendencia Financiera ment policy.
163
ISSUED PREMIUMS 17 th was driven mainly by personal insuran-

ces, moving from 7.3% in 2016 to 17.1%
In 2017, the total accrued value of issued in 2017. (Chart 6.6).
premiums related to insurance for inclu-
sions reached $8 trillion, equivalent to 17. Issued premiums: Direct issued premiums, plus pre-
31.3% vis-à-vis total production of the in- miums accepted in co-insurance, minus cancellations
sured sector and represents annually in or cancellations of direct issued premiums and co-insu-
real terms increase of 9.5% and 14% no- rance, plus premiums accepted and or assigned by the
minal annual increase, 2pp above nominal Compensation Chamber of mandatory insurance against
industry growth (Chart 6.5). This grow- traffic accidents.
CHART 6.5
69% Share of issued
premiums for
31% financial inclusion
27%
Other insurance
Insurance for financial inclusion
73% General insurance
Insurance for individuals
17%
16%
CHART 6.6
14% Growth rate of
premiums for
11% financial inclusion
9%
8%
7%
6% 2016
2017
Increase in insurance for General insurance for Total insurance for financial
Total insurance industry
financial inclusion financial inclusion inclusion
164
Within personal insurance, the policies of ly approved by some insurance companies

collective payment-protection insurance (Chart 6.7).
and group life insurance represented 57.7% In the case of general insurances, during
of total policies. Unemployment insurance 2017, 70.1% of issued premiums corres-
policies had the greatest increase in ter- pond to fire and earthquake policies. Theft
ms of share, increasing by 1.3pp, resulting was the policy showing greatest growth
from the annually in real terms growth of when compared to 2016 as regards issued
premiums of 35.7%, which is a significant premiums, growing by 14.1% annually in
variation as this type of policy was recent- real terms. (Chart 6.7).
Personal insurance
CHART 6.7
6.5% 7.8% Unemployment
Distribution of
issued premiums for 0.2% 0.3%
Periodic economic
benefits
financial inclusion,
17.2% 15.9% Individual life
per policy type
33.7% 34.8% Group life - debtors
Group payment
22.2% 22.9% protection insurance
2016 19.6% 17.7% Personal accidents
2017
0.6% 0.6% Funeral expenses
60% 40% 20% 0% 20% 40% 60%
General insurances
2.7% 2.7% Agroindustry
10.6% 10.6% Home
2016
14.9% 16.6% Theft
2017
71.8% 70.1% Fire and/or earthquake

100% 80% 60% 40% 20% 0% 20% 40% 60% 80% 100%
165
The value of insurance premiums is one of the previous year. The use of networks became
most important components to incentivize sec- the most representative distribution channel
tor's inclusion, as it may be an access barrier for for the commercialization of insurances in
financial services. During 2017, 29.7% of total is- Colombia having 37.9% of total policyhol-
sued premiums in products related to insurances ders, followed by individual brokers (23.1%)
for inclusion entailed a monthly average premium and insurance intermediaries (17.3%) Chan-
of less than $20,000 (28% in 2016). The most ac- nels experiencing greater growth of poli-
cessible policies were funeral expenses, personal cyholders were public utility companies
accidents, periodic BEPS, unemployment, theft (194%) and electronic media, mobile devi-
and group debtors life insurance (Chart 6.8). ces and Internet, with annually in real terms
increases of 193.6% and 66%, respectively
POLICYHOLDERS (Chart 6.9).
In 2017, the number of effective poli-
cyholders18 increased by 7.7% vis-à-vis the
CHART 6.8
6%
Agrarian 94%
Share of issued
premiums for financial
3%
8%
5%
Home 84%
Theft
inclusion, per policy
17% 28% 10% 45%
type and range of
2%
Earthquake 4% 92%
monthly premium19
2%
1% %
2
Fire 3% 94%
Unemployment 20% 25% 39% 16%
Economic benefits 50% 50%

< $10,000
5%
7%
Individual life 24% 65%

$10,000 - $20,000
Group life - debtors 42% 11% 14% 34% $20,000 - $50,000
> $50,000
Group life - voluntary 12% 13% 31% 44%
Personal accidents 22% 31% 27% 20%
Funeral expenses 16% 45% 8% 32%
18 The monthly premium refers to the value in pesos of issued premiums and paid on a monthly basis per policyholders.
19. The number of current insured refers to the number of insured with policies in force as of December of the year under study.
166
CHART 6.9
Evolution of insurance
Share by number total of risks
market share policyholders in per year
for financial inclusion, 6.7%
per sales channel 16.3%
3.2% 7.7%
14.6%
11.1%
Use of network 6.9%

Microfinance institutions
2.7%
Solidarity sector
Utility companies 10.6%

Electronic means, mobile
devices and Internet 0.2%
Own work 6.0%
Stores and large surfaces
1.4%
Insurance brokers
60.8%
Other
0.5% 57.1% 78.5%
Personal General
2015 2016 2017 insurance insurances
Share by number total 4.2%

effective policyholders 8%
3.9% 18.6%
7.3%
37.9%
17.3%
25.2%
2,5%
7.9%
5.7%
23.1%
2.6%
0.2% 5.3%
7.2%
32.9% 74.8%
2015 2016 2017
Personal General
insurance insurances
167
Although during 2017 the use of network conti- new insured risks through general insurance
nued as the most important channel in terms of coverage increased its share by 10.8pp over
insurance placement, its total share of new po- the total, from 6.4% to 17.2% (Chart 6.10).
licyholders for the year decreased by 15.9pp, New policyholders with insurances for
from 76.7% in 2015 to 60.8% in 2017. The fo- financial inclusion entered mainly through
regoing is mainly the result of the decrease in the group debtors life insurance business
the ratio of payment protection insure to the (40.4%), this share has decreased from 2015
total number of insured risks. (Chart 6.11). This situation may be interpre-
When reviewing data per type of insuran- ted as positive, as it is indicative that in-
ce, there is evidence that although 88% of surance growth for inclusion is driven by
effective policyholders of insurances for finan- different types of insurances placed throu-
cial inclusion in 2017 were personal insurance gh loans or other mandatory policies, as vo-
clients, their share was 3pp lower when com- luntary theft insurance, personal accidents
pared to the previous period. The number of and unemployment policies.
CHART 6.10
Evolution of
insurance market
95% 94% 83%
share of insurances
for financial
2015 2016 2017 inclusion, per type
of insurance
Share of total nuber of

5% 6% 17% risks policyholders in
the year
Personal insurance
2015 2016 2017 General insurance
87% 91% 88%

Share of policyholder,
by type of insurance
2015 2016 2017
Personal insurance
13% 9% 12% General insurance
2015 2016 2017
168
Personal insurance
CHART 6.11
Evolution of the share
69.4%
of effective number
58.7%
of policyholders of
insurances for financial
inclusion, per policy type
40.4%
2015
2016
20.8%
2017 16.5%
16.5%
12.8%
11.4%
9.4%
7.6%
5.9%
4.7%
2.5%
0.01%
0.01%
0.01%
0.01%
1.4%
0.6%
0.7%
0.4%
Funeral Personal Group Group life - Individual life Periodic Unemployment
expenses accidents payment debtors economic
protection benefits
insurance
General Insurance
5.2%
4.1%
3.8%
1.4%
2015
1.3%
1.2%
2016
1.0%
0.9%
2017
0.7%
0.3%
0.3%
0.01%
0.01%
0.01%
0.00%
Fire Earthquake Theft Home Agroindustry
169
Regarding the policies for financial inclusion,

personal accident and group debtors life in-
surance have the largest number of effecti-
ve policyholders, which share amounting to
31.2% and 30.1% respectively. (Chart 6.12)
Regarding associated policies to general in-
surances, theft contributed most to the evo-
lution of financial inclusion, as it increased
its market share by 4.8pp in the total num-
ber of policyholders.
When reviewing market share of policyhol-
ders per distribution channels and policies in
2017, the following came out (Chart 6.13)
• Funeral expenses insurances were com-

mercialized mainly through stores and lar-
ge retailers.
• Own sales force and intermediaries
were driven by the placement of poli-
cies of personal accidents, individual
life insurance, fire, earthquake, home and
agro-industry policies.
• The channel that contributed less to the
increase of policyholders of insurance for
financial inclusion was the solidarity-ba-
sed sector20.
20. Commerialization channels, corresponding to financial

credit unions that are not overseen by the SFC and funds.
Pursuant to the law, it is understood by financial credit
unions employee funds, mutual funds, unions and other
entities of solidarity-based economies.
170
Personal insurance
CHART 6.12
Evolution of the
share of effective
34.8%
policyholders of
33.0%
insurances for
30.1%
27.2%
per policy type
31.3%
31.2%
2015
16.1%
14.5%
2016
14.8%
2017
8.4%
6.8%
2.9%
4.8%
3.5%
3.1%
1.7%
0.00%
0.00%
0.01%
0.7%
1.6%
Funeral Personal Group Group life - Individual life Periodic Unemployment

expenses accidents payment debtors economic
protection benefits
insurance
General Insurance
0.8%
6.5%
4.0%
3.6%
2.7%
2015
2016
1.3%
2017
1.0%
0.8%
1.2%
1.2%
1.2%
0.9%
0.01%
0.01%
0.1%
Fire Earthquake Theft Home Agroindustry
171
172
Funeral 8% 6% 73% 9% Funeral
expenses expenses 16% 6% 44% 23%
Personal 15% 17% 34% 27% Personal 33% 22% 7% 30%

accidents accidents
Group life - 13% 7% 8% 8% 35% 23% Group life - 30% 6% 6% 27% 26%
voluntary voluntary
Group life - Group life - 71% 10% 9%

debtors 47% 11% 16% 13% debtors
67% 11% 13% 5%

Individual life Individual life 56% 14% 13% 12%
Economic benefits 100% Economic benefits 100%
Unemployment 86% 10% Unemployment 88% 5%
Fire 12% 11% 11% 30% 24% 9% Fire 14% 6% 7% 30% 29% 14%
Earthquake 20% 9% 34% 28% Earthquake 20% 39% 26%
Market share of effective policyholders

Theft 90% Theft 93%
Home 62% 11% 14% 9% Home 58% 11% 18% 12%

Market share of total number of risks insured during the year
Agroindustry 98% Agroindustry 53% 40%

Other
Insurance brokers
Own work
and internet
Electronic means, mobile devices
Utility companies
Solidarity sector
Microfinance institutions
Use of network
and policy type
inclusion, per channel
of policyholders of
Market share of number
CHART 6.13
Regarding distribution by gender, during 2017, products that are specific to women (acces-
56% of policyholders in the business of finan- sories, hand bags, among others) Chart 6.14.
cial inclusion insurances were men and 44% When reviewing data per policy and gen-
were women. Between 2016 and 2017, the der, there is evidence of an equal distribution
market share of women in insurances for fi- with the exception of the policies related to
nancial inclusion grew by 2pp, driven by an theft and agro-industry that had a larger sha-
increase in the number of women policyhol- re of men, 88% and 84% respectively (Chart
ders of personal and general insurance poli- 6.15). The businesses with greatest growth of
cies. These results may be attributed to the women policyholders relate to periodic BEPS
efforts carried out by the sector to design pro- (7pp), group voluntary life insurance (3pp) and
ducts differentiated by gender, such as poli- group debtors life insurance (3pp) and busines-
cies with coverage for illnesses related to men ses with greatest growth of number of men poli-
and women and/or those offering coverage for cyholders are theft (14pp) and home (9pp).
CHART 6.14
2015 2016 2017
Evolution of
the share of
total effective
policyholders
Total insurance
of insurances for for inclusion
54% 46% 58% 42% 56% 44%
per gender
Personal
insurance for
inclusion
53% 47% 53% 47% 52% 48%
General
insurance for
inclusion
81% 19% 84% 16% 83% 17%
173
CHART 6.15
Market share of effective
16.2%
48.7%
11.6%
40.2%
43.3%
47.2%
51.1%
50.3%
46.0%
43.6%
49.4%
51.2%
policyholders in 2017 of
inclusion, per gender and
policy type
Women
Men
83.8%
51.3%
88.4%
59.8%
56.7%
52.8%
48.9%
49.7%
54.0%
56.4%
50.6%
48.8%
Agrarian
Home
Theft
Earthquake
Fire
Unemployment
Periodic economic
benefits
Individual life
Group life -
debtors
Group life -
voluntary
Personal
accidents
Funeral
expenses
The sales channel with the greatest num- in microfinancial institutions21, and the use of
ber of effective men policyholders was the networks through the policies of fire, theft,
use of network (61.1%) while public utility home, unemployment and group life insuran-
companies was the channel having the lar- ces (Chart 6.16).
gest women representation in its products Among the purposes of financial inclusion is
(56.7%). When analyzing variation in femi- to provide affordable products that ensure cove-
nine market share per channel and policy, it rage to address needs of the population, irres-
was observed that the greatest growth were pective of their geographical location.
21. Commercialization channel corresponding to non-profit organizations and NGO's.
174
Men
2017
2016
Women
of effective
Market share
CHART 6.16
sales channel
per gender and
policyholders in
2017 of insurances
for financial inclusion,
29.9%
Use of network Other 55.8% 44.2%
38.9%
Microfinance 22.6% Insurance

institutions brokers 52.5% 47.5%
47.5%
Solidarity 43.4% Stores and large

sector surfaces 54.9% 45.1%
43.1%
56.6%
Utility companies Own work 52.4% 47.6%
56.7%
Electronic means, 40.1% Electronic means,

mobile devices and mobile devices and 58.7% 41.3%
internet 41.3% internet
47.6%
Own work Utility companies 43.3% 56.7%
47.6%
Stores and large 44.4% Solidarity

surfaces 56.9% 43.1%
45.1% sector
Market share of effective policyholders
Insurance 46.6% Microfinance

brokers institutions 52.5% 47.5%
47.5%
44.0% Use of network 38.9%

Other 61.1%
44.2%
175
In the insurance sector, one may observe overcome financial crisis when faced with
a 3pp increase in the number of policyhol- unforeseen events (Chart 6.17).
ders living in rural municipalities and disper- The policy showing the greatest growth of
sed rural areas in the country during 2017 clients located in rural areas was fire, which
(13.5%). This growth means progress as re- had an increase of 13.3%, becoming the third
gards the objective of insurance for inclu- policy with greatest share of effective poli-
sions, which seek that Colombians from cyholders in this area (24.8%). Basic covera-
all areas of the country have mechanisms ges of the following insurance policies are more
in place that allow them to maintain their appealing to inhabitants from rural areas and
quality of life and ensure tranquility to their dispersed rural areas: fire, explosions, water
families to fulfill long term objectives and damage, flooding and avalanches (Chart 6.18).
CHART 6.17
90.0%
89.0%
84.7%
78.3%
87.2%
89.0%
87.5%
88.8%
86.5%
Evolution of
the share of
total effective
policyholders of
insurances for
per type of area
Urban
10.0%
11.0%
15.3%
21.7%
12.8%
11.0%
12.5%
11.2%
13.5%
2015 2016 2017 2015 2016 2017 2015 2016 2017
Personal insurance General insurance Insurance for financial Source: Superintendencia

inclusion Financiera de Colombia
176
CHART 6.18 100% Agroindustry
Market share
95.3% 4.7% Home
of effective
policyholders 98.7% 1.3% Theft
who in 2017 of
insurances for 85.2% 14.8% Earthquake
financial inclusion, 75.2% 24.8% Fire

per type of area
and policy type 94.1% 5.9% Unemployment
94.9% 5.1% Periodic economic benefits
Rural Personal life

98.0% 2.0%
insurance
Urban
94.0% 6.0% Group life -
debtors
Group payment
87.9% 12.1% protection insurance
86.8% 13.2% Personal

accidents
99.9% Funeral
0.1% expenses
Top 5 policies per area %

2%
.0
Other
10
0.
Theft 4.0%
Other
Agroindustry 10.0% 5.2% Funeral expenses
Fire 11.3% Group payment
15.6%
protection insurance
Group life - 18.7% Theft

voluntary 31.7%
Personal
20.4%
accidents
Personal
accidents 41.0% Group life -
30.3% debtors
Rural Urban
177
The commercialization channel with the grea- insured amounts, which value is discounted
test concentration of effective policyholders from the balance of products under deposit
in rural areas was that of insurance interme- that allow managing money from their mobile
diaries (32.4%), followed by electronic media, phones. These policies do not need insurabi-
mobile devices and Internet (21.3%). This last lity requirements nor are exclusions applicable
option is related to insurance policies with low thereto (Chart 6.19).
CHART 6.19
72.6%
67.6%
100%
99.3%
78.7%
93.2%
92.5%
98.8%
98.3%
Market share of
effective policyholders
in 2017 of insurances
for financial inclusion,
per type of area and
sales channel
Rural
Urban
27.4%
32.4%
1.2%
1.7%
21.3%
0.7%
6.8%
7.5%
Other
Insurance
brokers
Own work
Electronic means, mobile

devices and internet
Utility companies
Solidarity
sector
Microfinance
institutions
Use of network
178
CANCELLATIONS bles knowing the business index that comple-

te coverage before their expiration date. During
The cancellation of an insurance contract be- 2017, the policy related to insurances for finan-
fore its expiration occurs mainly due to delin- cial inclusion experienced a cancellation index
quent premium payments, not complying with of 28.3%, 2.6 pp greater than in 2016. Personal
guarantees or obligations of the insured indivi- insurance reached an index of 29.6%, growing
dual or policyholder, not giving notification to 4pp vis-à-vis the previous year, and general in-
the insurance company on modifications that surance reached 21.5% of cancelled busines-
influence the status of the risk, the non-exis- ses, 4.9pp less than in 2016 (Chart 6.20).
tence of policyholders interest and revocation
from policyholders as they are not satisfied
with the service rendered or changes in pri-
cing or coverages of the insurance company. 22. The number of accrued policies that complete coverage
The number of accrued cancellations over before their expiration date as a proportion of number of
the number of accrued effective policies ena- effective and accrued policies.
CHART 6.20
Cancellation
index of
insurances22
for financial
inclusion, per 29.6%
type of insurance 28.3%
25.6% 26.4% 25.7%
2016
21.5%
2017
Source: Superintendencia Personal insurance General insurance for Total insurance

for inclusion financial inclusion for financial
Financiera de Colombia inclusion
179
Personal insurance
CHART 6.21
Cancellation index
Unemployment 73.3% 28.8% of insurances
for financial
Periodic economic
benefits 1.8% 2.4% inclusion, per type of
insurance and policy
Individual life
37.0% 34.1%
Group life - debtors

29.8% 49.6%
2016
Group life - voluntary
24.9% 26.8% 2017
Personal accidents
14.8% 12.2%
Funeral expenses
4.7% 6.9%
100% 60% 20% 0% 20% 60% 100%
General insurances
Agroindustry 7.6% 18.1%
11.2% 13.9%
Home
37.9% 19.2%
Theft
22.2% 34.7%
Earthquake
2016
10.5% 31.0% 2017

Fire
100% 80% 60% 40% 20% 0% 20% 40% 60% 80% 100% Source: Superintendencia
180
The policies with the greatest cancella- As per the foregoing, and given that the com-
tion index in 2017 were group debtors mercialization channel of insurances associa-
life insurance (49.6%), followed by earth- ted to loans is the use of networks, the highest
quake (34.7%) and individual life insurance cancellation index was found in this chan-
(34.1%). Those experiencing greater increa- nel (48.8%). In second place, electronic me-
ses in the indicator were fire, group deb- dia, mobile devices and Internet (43.5%) and
tors life and earthquake (Chart 6.21). It is in third place were stores and large retailers
worth noting that the cancellation of pro- (29.2%) (Chart 6.22). These results allow con-
ducts linked to these policies may be rela- cluding that channels with massive placement
ted, in part, to the payment of the loan by of policies show the largest number of comple-
policyholders to financial institutions ted transactions before their expiration.
CHART 6.22
Cancellation index
of insurances
for financial
24.7% 17.7% Other
inclusion, per
commercialization
Insurance
channel 10.9% 11.7%
brokers
29.2% Stores and large

43.8% surfaces
2016
2017
9.9% 18.2% Own work
Electronic means,
58.3% 43.5% mobile devices and
internet
21.6% 9.4% Utility companies
Solidarity
2.1% 4.1% sector
Microfinance
44.7% 13,0% institutions
33.1% 48.8% Use of network
Source: Superintendencia 100% 60% 20% 0% 20% 60% 100%

181
ACCIDENT RATE adequate solvency levels. Therefore, an ade-

quate accident rate index is not only in relation
As previously mentioned, the claims ratio is to risk management policies, but also to the
the existing ratio between the amount of los- effort of promoting financial inclusion.
ses paid and revenues on the sale of insu- For 2017, insurances for financial inclusion
rances. If the index increases, the insurance had a market share of 14.9% of paid losses, re-
company will have to assess the sufficiency presenting a claims ratio of 23.8%. This figure,
of the rate as of technical revenues and ex- which is 1.3pp lower than the previous year and
penditures, hence, insurance companies may 26.3pp below industry index, is explained by the
make changes to subscription conditions and reduction of accident rate in personal insuran-
increase the price of the insurance to maintain ces. Within personal insurances, the policies of
CHART 6.23
Share of losses
by insurances for
financial inclusion
85.1%
14.9% Other insurance
Insurance for financial inclusion
General insurance
Personal insurance
18.8%
81.2%
182
CHART 6.24
Claims ratio by 51.0%
insurances for 50.0%
financial inclusion
2016
2017
30.0%
27.0%
25.0%
24.0%
16.0%
14.0%
Personal General Total insurance Total insurance

insurance for insurance for financial industry
inclusion for financial inclusion
inclusion
voluntary group life insurance, unemployment responsibility of the insurance company, the
and group debtors life insurance drove the de- rate of objection of insurances for financial in-
crease in the accident rate for this type of insu- clusion in 2017 reached 24.4%, 6.6pp above
rance, showing a decrease of 8.7pp, 7.2pp and the previous year. Regarding personal insu-
3.7pp respectively. (Chart 6.23). rance, the policy with the greatest rate of ob-
Understanding by objection the non-pay- jection was unemployment (52.4%) and in
ment of claims in the case of the incident general insurances, the policy of theft showed
claim, due to circumstances that exclude the the greatest rate of objection (22.6%).
183
Personal insurance
CHART 6.25
Claims ratio of
Unemployment 23.4% 16.1% insurances for
Periodic
economic 108.5% 110.4%
per policy type
benefits
Personal life
insurance 18.5% 18.9%
2016
Group life - 34.4% 30.7%
debtors 2017
Group life - 40.8% 32.1%

voluntary
Personal 20.0% 21.6%

accidents
Funeral 38.6% 36.3%

expenses
120% 80% 40% 0% 40% 80% 120%
General insurances
Agroindustry 12.1% 5.8%
Home 16.0% 18.9%
Theft 14.7% 15.3%
Fire and/or
2016
earthquake
13.7% 16.3% 2017
80% 60% 40% 20% 0% 20% 40% 60% 80%
184
CHART 6.26
Rate of objection of
Personal
insurances for insurance for
financial inclusion, per inclusion
type of insurance 27.2%
General
insurance
for financial
inclusion 14.8%
Total insurance
for financial
inclusion
Source: Superintendencia 24.4%
185
7
FINANCIAL
CHAPTER 7 | FINANCIAL CONSUMER PROTECTION
7.
FINANCIAL
CONSUMER
PROTECTION1
F
inancial consumer protection drives the framework, which are addressed differently
development of long-term relations- in the regulation and supervision. These sce-
hips between consumers and financial narios cover aspects from ensuring the sui-
institutions, allowing consumers to achie- tability of advertising solutions of overseen
ve a favorable experience and have access institutions and the suitability of information
to mechanisms to exercise their rights at provided to consumers; limiting the use of
all stages of the interaction between par- practices and conducts that may not favor
ties, that is, when they search for the ideal consumers’ interests; to ensuring the availa-
product or service; when they establish a bility of effective disputes settlement mecha-
contractual relationship with a financial ins- nisms to be settled.
titution; and when they make use their ac-
quired financial products.
There are many aspects surrounding the 1. This chapter uses information on financial institutions over-
creation of a financial consumer protection seen by the Superintendencia Financiera de Colombia.
187
In this regard, in the Good Practices for Finan-
cial Consumer Protection (2017) report, the
World Bank highlights that jurisdictions must
ensure that overseen institutions have enou-
gh capacity and adequate internal processes
to receive and handle consumers’ complaints
and, in addition, ensure consumers have dis-
pute resolution mechanisms available other
than institutions and ordinary justice systems.
In addition, in 2017, within the internal pro-
cesses and requirements aimed at complaints
management, 124 jurisdictions reported in a
World Bank survey setting time limits; main-
taining databases with information on their
characteristics and management; having spe-
cialized management areas within financial
institutions; making channels available to con-
sumers; and informing about the various com-
plaint mechanisms available; and periodically
submitting information to the government re-
garding these (Chart 7.1).
In the case of Colombia, different advance-
ment have helped the country become aligned
with most regulatory good practices. Howe-
ver, there are no explicit provisions stating that
institutions must have a specific department
to receive and handle complaints made by
financial consumers. Also, regarding comp-
laint-management times, the regulation sta-
tes that requests, including complaints from
public and private institutions, are given a
maximum management timeframe of fifteen
business days upon receipt2.
Nonetheless, regulation from the Sistema
de Atención al Consumidor Financiero for ins-
titutions overseen by Superintendencia Finan-
ciera de Colombia states that institutions shall
“...effectively handle requests, complaints or by individuals under special protection;

claims filed by financial consumers, which complaints classified as small as well as
shall include: reasonable response time...”3, easy to handle cases; violation of habeas
with the foregoing leading to ambiguities data; or complaints about opening of ac-
about response time to be met by overseen counts to manage political campaign funds.
institutions in responding to complaints. The maximum response time for express
About complaints made to the Superinten- complaints is five business days4.
dencia Financiera de Colombia, the regulation
is very clear about response time, providing
a maximum fifteen business day period after
the date complaints are received.
In addition, in 2015 the Superintenden- 2. Law 1755 of 2015.
cia Financiera de Colombia created the 3. Article 1.5.2.2 of Chapter II, Title III, Part I of Circular
“express complaints” category, whose ma- Básica Legal.
nagement process is more agile and which 4. Article 8.5 of Chapter II, Title IV, Part I of Circular
are recurrent complaints; complaints made Básica Legal.
74%
CHART 7.1 66%
64%
Percentage of 60%
58%
jurisdictions stating 51% 50%
to have specific
requirements
for complaint
management
processes
Source: World
Bank (2017)
Compilation
of information about
complaints
Complaints
management
procedures
Timeframe
for answering
complaints
Presence of an
independent unit in charge
of complaints management
within overseen institutions
Variety of channels
to file complaints
Availability of
information
regarding the stages
of complaint filing
System for reporting

complaints
information to the
government
Incorporated into the

Colombian regulation
189
According to the World Bank’s survey on a financial consumer ombudsman for comp-
Good Practices for Financial Consumer Pro- laints5 and, in addition, since 2012, consumers
tection, 61% of Latin American and Carib- may settle conflicts with institutions before
bean countries said that there are alternative this institution by filing claims in full use of its
dispute resolution mechanisms other than or- jurisdictional powers granted by Law 1480 of
dinary justice, of which Colombia is a part 2011, which serves as an alternative to ordi-
of, as overseen institutions are required to nary justice.
have a financial consumer ombudsman. In This chapter provides significant informa-
contrast, 33% of surveyed Middle East and tion on receipt and management of complaints
North Africa countries responded positively. made to institutions overseen by the Superin-
Other regions of the world gave affirmative tendencia Financiera de Colombia and the fi-
answers as follows: 63% by countries in Eu- nancial ombudsman in 2016 and 2017, as well
rope and Central Asia, and 71% by countries as claims received by the Superintendencia Fi-
in South Africa (Chart 7.2). nanciera de Colombia over that same period.
It is worth mentioning that in Colombia,
most institutions overseen by the Superin-
tendencia Financiera de Colombia must have 5. Article 2.34.2.1.1 of Decree 2555 of 2010.
71% CHART 7.2

63% 64%
Percentage of
61% jurisdictions
57% stating to have
dispute resolution
mechanisms
available different
from ordinary justice
procedures
33%
Colombian regulation
requires the overseen
entities by SFC to
have a consumer
ombudsman
East Asia and
the Pacific
Latinamerica and
the Caribbean
Middle East and

Northern Africa
Sub-Saharan
Africa
Europe and
Central Asia
South Africa
Source: World
Bank (2017)
190
MAIN MESSAGES ON FINANCIAL

CONSUMER PROTECTION
1
In 2017, there was a decrease 1,283,057 1,261,593
Complaints Complaints
in the number of complaints
received in 2016 received in 2017
received by overseen
institutions and financial
consumer ombudsmen,
and progress was made on 94% 95.2%
the percentage of settled Settled Settled
complaints relative to 2016. in 2016 in 2017
3
Saving accounts
The upward trend of complaints 177,388 complaints 2%
received about deposit
products was due to savings Failures at ATMs 28%
accounts and certificates of
deposits. In the first case for ATM
failures, and in the second case Certificates of deposits
due to issues with review and/or
settlement of product conditions. 2,254 complaints 38%
Review and/or settlement
of product conditions 58%
5
Personal accidents
A higher share of group
life insurance was found in 16,015 complaints 72%
insurance product related Inappropriate supply of information
complaints. However, received by the time of filing 76%
complaints about personal
accidents and fire showed an
increase by over 70%, mostly Fire
due to inappropriate supply of
information by the time of filing.
13,020 complaints 230%
Inappropriate supply of information
by the time of filing 275%
7
Claims received by the Bogotá
49% 2016 2017
de Colombia were mostly filed Córdoba 19 30
in Bogota (49%). However, the
Cundinamarca 73 91
scheme implemented by the
Superintendencia Financiera de Huila 57 75
Colombia enables complaint filing and management Nariño 23 46
in the regions. In particular, there was an increase in
Quindío 53 80
2017 in the number of complaints filed in Cordoba, Rest of
the country
Cundinamarca, Huila, Nariño and Quindio.
51%
192
2 Insurance
companies
15%
Banks
7%
Banks
Most received complaints 60%
were filed against banks.
However, insurance
companies showed the Insurance
highest increase in received companies
complaints.
Others
24%
24%
4 Mortgages
Even if most complaints about loan

products were related to credit
cards, in 2017 complaints about
of product conditions 20%
mortgage loans and microcredits
went up driven by issues with
review and/or settlement of product Microcredits
costs, rates and balances.
Review and/or settlement of
product conditions 66%
6
The Superintendencia Financiera
de Colombia, in full use of its 2,709
jurisdictional powers, continued Requests received
to receive claims for amounts 2017
similar to those seen in 2016, with
women having a 40% share and
men 56%, 63% of which were
minimum-amount complaints. 40% 63%
Women Minimum
The remaining 4% corresponds to businesses. amount
8
Complaints against credit institutions Credit institutions
decreased by 8%. Most complaints
were mainly filed about term, interest 1,774 complaints 8%
and contract obligation conflicts. On the
other hand, complaints against insurance
Insurance companies
companies increased by 18% due to
conflicts over indemnity payments under
insurance agreements.
773 complaints 18%
Indemnity payments under
insurance agreements 16%
193
7.1 COMPLAINTS complaints in total, a decrease of 2% relative

to 2016. These complaints, together with outs-
AGAINST INSTITUTIONS tanding complaints from 2016 (i.e., complaints
OVERSEEN BY THE to be settled in 2017) went up to 1,336,898 by
the end of 2017 (Chart 7.3).
SUPERINTENDENCIA The results of complaints handled by overseen
FINANCIERA DE institutions and financial consumer ombudsmen
had a higher performance in 2017 relative to the
COLOMBIA preceding year. Regarding the total number of
In 2017, 1,342,120 complaints were filed across complaints to be settled, 95% (1,273,102) were
all competent entities (89% to overseen institu- settled, and 4% (57,422) remained outstanding
tions; 5% to financial consumer ombudsmen; for settlement during the following period, which
and 6% to Superintendencia de Financiera de is 1.3pp less compared to 2016.
Colombia. Overseen institutions and financial From the total number of settled comp-
consumer ombudsmen received 1,261,593 laints, 45% were awarded to financial consu-
How about complaint management in 2017? CHART 7.3

Complaint receipt
and management
55,622 by overseen
1,283,057
Complaints pending to Received in 2016 Settled Complaints not institutions and
settled in 2016
solve from 2015
94% 5.6%
financial consumer
ombudsmen
49.7%
Favoring
1,338,679 financial consumers
Total complaints to be
settled in 2016
75,305 1,261,593 Settled Complaints not

settled in 2017
95.2%
Complaints pending to Received in 2017
solve from 2016 4.3%
44.7%
Favoring
1,336,898 financial consumers
Total complains to be Source: Superintendencia
settled in 2017 Financiera de Colombia.
194
mers, 5pp less than the percent of settlement As to the completion of complaints to be se-
favoring consumers in 2016. At this point, it ttled, there is heterogeneity in the share of
is important to note that complaints that are settled complaints awarded to financial con-
not awarded to financial consumers do not sumers among the five types of institutions.
necessarily mean that the sense of the reply In 2016 and 2017, the institutions who admi-
was not appropriately provided. nistered the average premium regime had a
When analyzing complaint management highest settlement level in favor of financial
by the institutions that received most com- consumers, despite its drop over the last
plaints to be handled during the year (96% year, going from 96% to 75% of total sett-
of complaints to be settled), it is found that, led complaints.
with the exception of pensions and seve- On the other hand, financing companies
rance pays, while the other types of institu- showed a settlement level in favor of financial
tions reached a higher completion level of consumers that reached almost 20% in both
complaints to be settled in 2017 relative to years, being the institution with the lowest se-
2016 (Chart 7.4). ttlement level in favor of financial consumers.
CHART 7.4 of the total number of

Complaint management 96% complaints to settle
were filed in these five
by type of institution types of institutions
Financiera de Colombia. Average
Banks Financier Insurance Pensions and
companies companies premium regime severance pays
Number of
compaints pending 850,764 186,226 160,167 51,916 38,970
to solve
2016 % Completed 95% 87% 96% 94% 96%
% Favoring
55% 21% 49% 96% 24%
financial consumers
Number of
compaints pending 799,504 212,363 198,415 39,266 35,333
to solve
2017 % Completed 96% 94% 97% 96% 90%
% Favoring 52% 20% 41% 75% 27%

financial consumers
195
CHARACTERIZATION OF Credit cards –ranking second in terms of

RECEIVED COMPLAINTS penetration in Colombia following savings
accounts– was in first place among all five
As explained above, 96% of complaints re- products that financial consumer comp-
ceived in 2017 were mostly filed in five types lain the most about, representing 44% of all
of institutions, with banks accounting for the complaints filed in 2017. Over the last year,
largest share (60%), but showing a 7% drop complaints related to current accounts fell
over the last year. outside the trend of these five products, with
On the other hand, there was an increase 51% less complaints received, with auto in-
in complaints received by financing compa- surance being now on the list, despite com-
nies and insurance companies, 3% and 24%, plaints for this product showing similar levels
respectively, relative to 2016 (Chart 7.5). in both years (Chart 7.6).
196
CHART 7.5 Which institutions do financial consumers

Main institutions complain the most about?
receiving complaints
2017 2016
Banks 762,006 816,256
96% Insurance
companies
192,139 155,466
Financier 188,988 183,276

companies
of the total number of received
complaints were filed in these Average premium 35,934 42,465
five types of institutions
Pensions and
34,145 37,194
severance payment
CHART 7.6 Which products do financial

Main products consumers complain the most about?
receiving complaints
Credit card 567,282 Credit card 555,084
Saving Saving
173,819 177,388
account account
76% Commercial Commercial

2016 or consumer 138,816 2017 or consumer 135,689
loan loan
Current Elderly
80,224 53,164
of the total number of account retirement
received complaints were
about these five products
Elderly Car
61,155 40,241
retirement insurance
197
SRegarding the reasons why financial consumers the trend in complaints related to contract infrin-
complain, issues with product costs, rates and gement and/or modification, a 28% increase
balances ranked first, for 17% of the total num- took them from ranking fourth to third in the top
ber of received complaints. Compared to 2016, five reasons for complaints in 2017 (Chart 7.7).
What do financial consumers complain about? CHART 7.7

Main reasons for
complaints
2016 2017
Review and / Review and /
238,162 213,559
or settlement or settlement
Fees and Fees and

176,272 113,281
commission commission
48% Failures at Contract

93,915 infringement 112,122
the ATM
and/or modification
Contract
Failures at
infringement and 87,234 91,493
the ATM
/or modification
of the total number of
complaints were based Unjustified Unjustified Source: Superintendencia
70,556 77,489
on these five reasons discounts discounts
CHARACTERIZATION OF RECEIVED The analysis of complaints per 100,000 cus-

COMPLAINTS BY PRODUCTS tomers shows a different perspective on sa-
vings accounts, which dropped from 6,732
Below is an analysis of the main reasons for to 6,667. On the other hand, the indicator of
complaints received in 2017 by type of fi- complaints related to certificates of deposits
nancial products (categorized into deposits, increased from 166 to 223.
loans and insurance). The main reason for savings accounts
complaints was AMT failures, which increa-
Deposits sed by 28% and represented 41% of the total
complaints for this product. As to certifica-
Deposit products’ related complaints repre- tes of deposits, the 38% increase in the total
sented 17% of total complaints received by number of complaints was driven by comp-
overseen institutions and consumer ombuds- laints about issues with the review and/or se-
men in 2017. This year saw an increase in the ttlement of product costs, rates and balances,
number of complaints about savings accounts having a share of 35% on the total for this
(2%) and certificates of deposits (38%). type of product (Chart 7.8).
198
CHART 7.8 Received complaints per 100,000 customers

Received complaints
about deposit 2016 2017
products
Saving accounts 6,732 6,667
17% Current accounts 164 74
of the total number of Certificates

received complaints are about 166 223
of deposits
three deposit products
Number of received complaints by Growth rate

product and share by complaint reasons Type of complaint relative to 2016
41% Failures at the ATM 28%
Saving accounts 19% Unjustified discounts 15%
177,388
2% Vs. 2016
10% Wrongful charges for services or
commissions
34%
31% Failures at the ATM 61%
Current accounts 15% Wrongful charges for services or

commissions
28%
39,308
51% Vs. 2016
6% Contract infringement
and/or modification
22%
35% Review and/or settlement of

product conditions
58%
Certificates of deposit 16% Contract infringement

and/or modification
31%
2,254
38% Vs. 2016
11% Wrongful charges for services
or commissions 459%
199
Credit products ted 25% of the total number of complaints),

and 39% fewer complaints about wrongful
Credit products had the highest number of charges for services or commissions.
complaints received by institutions overseen Also, in the case of consumer or commer-
by Superintendencia Financiera de Colombia cial loans, the trend was due to the 20% de-
and consumer ombudsmen, accounting for crease seen in the last year in the main reason
58% of the total number of complaints filed for complaints about this product – review
in 2017. Last year saw a drop in the number and/or settlement of product costs, rates and
of credit cards and consumer and commercial balances– for 25% of the total.
loans complaints – a trend also found when As for mortgages, the increase in the num-
analyzing complaints received per 100,000 ber of received complaints resulted from the
debtors. On the other hand, even if mortgage increase in all the main reasons for comp-
loans and microcredits had a lower share of laints, in particular, the lack of information
complaints, annual growth rates of over 15% provided to financial consumers (81% grea-
were observed for both products. ter than 2016), and contributing to 8% of the
The analysis by reasons for complaints total for this type of product. In parallel, the
shows that the decrease in credit cards com- increase in the number of received microcre-
plaints was due to the fact that in 2016 there dits complaints was driven by the increase in
were 8% fewer complaints about issues rela- issues with the review and/or settlement of
ted to the review and/or settlement of product product costs, rates and balances (66%) and
costs, rates and balances (which concentra- reports to credit bureaus (39%) (Chart 7.9).
200
CHART 7.9 Received complaints per 100,000 debtors

Received complaints 2016 2017
about credit
products Credit card 9,089 8,638
Commercial or
3,031 2,871
58%
consumer loan
Mortgage loan 2,826 3,170
Microcredit 445 518

of the total number of received complaints
were about these five products
Number of received complaints by type of Growth rate

product and share by complaint reasons Type of complaint relative to 2016

25% product conditions
8%
Wrong collection of services

15% and commissions
39%
Credit cards
555,084 Contract infringement
2% Vs. 2016 11% and/or modification
53%

20%
Contract infringement
Commercial or 11% and/or modification
12%
consumer loan
135,689 11% Reports to credit bureaus 1%
2% Vs. 2016
37% of product conditions
20%
Mortgages loan
13% and/or modification
34%
29,590 8% Lack of information provide 81%

18% Vs. 2016
66%
Microcredit 19% and/or modification
14%
10,352
17% Vs. 2016 15% Reports to credit bureaus 39%
201
Insurance products6
The main insurance products represented 6%

of the total number of complaints received by
overseen institutions and financial consumer
ombudsmen in 2017. This year saw a parti-
cular increase in the number of complaints in
most areas, particularly complaints about per-
sonal accidents and fire, with increases in the
number of received complaints of 72% and
230%, respectively.
The reasons driving the increase in the
number of received complaints emphasize the
inappropriate supply of information provided
to financial consumers, which for complaints
saw an increase across all areas, except for
group payment protection and home damage
insurance, ranging from 76% for personal ac-
cident insurance and 275% for fire insurance.
Complaints about contract infringement
and/or contract modification also had an
effect over the increase in the number of re-
ceived complaints, ranging from 25% in group
payment protection insurance and 231% in
fire insurance (Chart 7.10).
6. Considering available information about insurance com-

plaints included in the insurance chapter of this Financial
Inclusion Report.
CHART 7.10
of the total number of
Received complaints 6% received complaints were
about insurance products about these six products
Number of received complaints by Growth rate

product and share by reasons Type of complaint relative to 2016
48% Inappropriate supply of information

Group payment
protection
and/or modification 25%
18,551 11% Delay in payment 10%

1% Vs. 2016

Personal accidents 8% Contract infringement

16,015
72% Vs 2016 4% Claim objection 78%

Life insurance 13% Delays in indemnity payments 23%
13,309 8% Inappropriate supply of information by

260%
6% Vs. 2016 the time of filing

Fire insurance 6% Contract infringement

13,020 1% Delays in indemnity payments 53%

230% Vs. 2016

Theft 22% Contract infringement

7,107 8% Claim objection 93%

116% Vs. 2016
12% Delays in indemnity payments 127%
Home damage 10% Inappropriate supply of

information by the time of filing 22%
5,136 5% Claim objection 74%

17% Vs. 2016
203
7.2 CLAIMS FILED TO THE claims, for a 4pp increase compared to

the previous year. It is to recall that mini-
SUPERINTENDENCIA mum-amount claims are claims for amounts
FINANCIERA DE of less than 40 Colombian minimum wages
(COP 29,508,680 in 2017) that may be filed
COLOMBIA verbally (claims for other amounts must be
In 2017, the Superintendencia Financiera de filed differently).
Colombia received 2,709 claims, 1% fewer By the end of 2017, 78.3% of received
relative to the preceding year. Out of the to- claims were settled –a percentage higher than
tal number of claims received, 40% were fi- the level achieved in 2016 (73%). By the end
led by women and 56% by men7. In addition, of 2017, 99.8% of received claims in 2016 had
63% of filed claims were minimum-amount been settled (Chart 7.11).
CHART 7.11
How many claims were received by gender and Received and
amount, and how many claims were settled? settled claims
2016 2017
2,733 2,709
By Gender By Gender
Women Men Women Men
42% 54% 40% 56% Nota: lower-amount

claims are claims be-
By Amount By Amount tween 40 SMMLV

(COP29,508,680 in 2017)
and 150 SMMLV (COP
110,657,550). Claims that
Mínimun Smallest Mínimun Smallest are not classified by gen-
59% 10.4% 63% 10.4% der correspond to claims

filed by legal entities.
Finalized Finalized
73% 78.3%
204
All of the 2,120 claims settled in 2017 had been because of lack of jurisdiction of the Superinten-
filed for several settlement reasons, particular- dencia Financiera de Colombia (Chart 7.12).
ly rejected claims, representing 55% of all recei- An analysis by department shows, just like
ved complaints in 2017, followed by claims that previous years, that most received claims were
were settled based on a ruling issued by the Su- filed in Bogota, 1,320 claims (49% of the to-
perintendencia Financiera de Colombia, or 17%, tal number of claims received during the year).
and dismissed claims by financial consumers, However, in 2017 there was an increase in the
and claims settled between the institution and number of claims received in other departments,
the consumer, or 13% each. Out of the 1,173 in particular: Cordoba, Cundinamarca, Huila,
claims rejected in 2017, 65% were rejected be- Nariño and Quindío (Map 7.1).
cause of lack of remediation (documentation and
supports) presented by the claimant, and 35% 7. The remaining 4% refers to legal entities.
2%
CHART 7.12
Claim settlement
13%
Reasons for
Others
13% claim settlement
Conciliated
Desisted
55% in 2017
Ruled
Rejected
17%
35%
Reasons for
claims rejection
in 2017
Absence of remedial actions 65%
Not a SFC competence
205
MAP 7.1 Departments for which the

Received claims number of filed claims increased
by department
2016 2017
Córdoba 19 30
Cundinamarca 73 91
Huila 57 75
Nariño 23 46
Quindío 53 80
Over 1.000
Between 200 - 300
Between 100 - 200
Between 50 - 100
Between 20 - 50
Less than 20
206
By type of institution, 94% of received respectively, of received claims against cre-

claims were filed against credit institutions dit institutions.
(65%), and insurance companies and insu- Regarding claims against insurance com-
rance brokers (29%). Compared to 2016, panies and insurance brokers, there was an
claims against credit institutions decrea- increase in 2017 of 18%, mostly due to issues
sed by 8%, driven by the decrease in the with payments indemnity under insurance
number of conflicts over terms, interest agreements, accounting for 83% of the total
and contract obligations by 19%, and fraud number of claims, which increased by 16% in
on electronic channels, by 24% and 19%, the last year (Chart 7.14).
CHART 7.14
Received claims by Which entities did financial consumers
type of institution and complaint about and why?
by complaint reason
6%
94% of the total number
of received claims by the
29%
Others 65% de Colombia were filed against
Insurance companies and
brokers credit institutions and insurance
Financial institutions companies and insurance brokers.
Number of received claims by type of Growth rate

Type of complaint
institution and share by complaint reason relative to 2016
24% Number of conflicts over terms,

interest and contract obligations
19%
Credit
institution 20% Unauthorized credit card charges 36%
1,774
19%
8% Vs. 2016
Fraud on electronic channels 27%
Insurance companies and

83% Payments indemnity under
insurance agreements
16%
insurance brokers
773 11% Number of conflicts over terms,
interest and contract obligations
8%
18% Vs. 2016
Fuente: Superintendencia Financiera de Colombia.
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FINANCIAL

Juliana Álvarez, Director Jorge Castaño, Superintendent

Daniela Londoño, Advisor María Fernanda Tenjo, Advisor

Sara Gómez, Advisor Mariana Escobar, Advisor

Michael Bryan, Advisor Kelly Granados, Professional

Marcela Jiménez, Analyst Yamile Castro, Professional

BANCA DE LAS OPORTUNIDADES www.puntoaparte.com.co

Calle 28 No. 13a - 15, piso 38 Mateo Zúñiga, Editorial director

Telephone: 486 30 00 Lina Martín, Editorial director

Customer service line: 756 11 72 Santiago Mojica, Designer

Other cities: 01 8000 180 720 Alejandra Rincón, Designer

www.bancadelasoportunidades.gov.co Ángela Ramírez, Designer

Andrés Álvarez, Designer

Customer service line: 018000 120 100

Bogotá, Colombia Printed in Bogotá D.C. by Zetta Comunicadores

INTRODUCTION PROGRESS AND

ACCESS AND ACCESS AND USAGE

FINANCIAL ACCESS AND

Juliana Álvarez Gallego Jorge Castaño Gutiérrez

The financial inclusion

2. Municipalities with 1 to 2 correspondents and no branches.

2.1 ACCESS TO solidation of a positive trend in their ratio,

As of December 2017, 27.1 million adults

CHART 2.1 85.0%

% of adults with financial 70.0%

% of adults with active 65.0%

Source: TransUnion, Banca 10%

Dispersed rural Rural Intermediate Cities and urban

Source: TransUnion, Banca

Source: TransUnion, Banca

75.6% OF ADULTS IN THE electronic deposit. This represents an increase of

* Electronic savings account (CAE, for its Spanish acronym)

with deposit 21.8

CHART 2.6 9.2

Number of adults 8.8

system by entry product 3.7% 4.1%

Current accounts 60%

MORE BUSINESSES IN THE FORMAL

By the end of 2017, 935,880 businesses

11. This corresponds to businesses with NIT [Tax Identifica-

CHART 2.9 231.5

2.2 USAGE OF D.C. (88.5%), Huila (87.7%) and Bolívar

active adults holding 23.7

at least one financial 21.1

Source: TransUnion, Banca 0

Ratio of active 90%

Source: TransUnion, Banca 10%

70% product by gender

0% Source: TransUnion, Banca

90% Ratio of active

10% Source: TransUnion, Banca

USAGE OF PRODUCTS IS LOWER number of adults with that product is close

Source: TransUnion, Banca

2014 2015 2016 2017

Compared to the previous year, adults with USAGE OF FINANCIAL PRODUCTS

Source: TransUnion, Banca

Savings CAE CATS DE

100 Source: TransUnion, Banca