The AV Villas Bank, a subsidiary of the Aval*group, registered in 2024 growth in all credit segments and there was an important reaction in the mortgage, said Gerardo Hernández, president of the entity.
He said that this year there will be several development spotlights such as the Aval Tag, a product that will combine the BRE-B, immediate payments system that the Bank of the Republic develops. They will begin to remunerate the ‘pockets’ of savings accounts and will most likely enter the remittance business.
(Further: Bogotá Bank will have immediate turns with entities such as Bancolombia and Davivienda).
How did he go to the bank in 2024?
Credit dynamics were improved, the brand was repositioned, much closer to people, which are our goal and digital capacities were deepened.
How is the credit composition?
We have about 60% in people banking, 20% in mortgage and the rest in companies. Our goal is to work with people, bring customers. We are strong in payrolls, agreements and improve the value offer.
How is the quality of the portfolio?
The Bank of Villas is one of those that has historically had a lower credit cost. And last year what we saw is that the quality of the portfolio began to improve since October and has continued to maintain it.
(You may be interested: National Savings Fund: step by step to withdraw your money saved).
What does that mean?
That provisions are lower, which is a sign that there are surely greater capacities, whether saving or consumption and allows you to think about 2025 in an optimistic way to continue increasing credit supply.
How do you see 2025?
This year it seems that it will give greater growth than in 2024 and analysts point to a figure between 2% and 2.8% and inflation will continue to fall, although not with the same speed that was expected. But here there are several risks and uncertainties at the global and local level. Possible commercial wars, a regrowth of inflation that can lead to the interest rates and that internally the interest rate does not fall as quickly as we all expected.
Research centers are talking that the rate can decrease up to 7.5% and the highest risk that is the 6.8% fiscal deficit of GDP, which is immense and if the government wants to take it to 5.2%, You have to make an effort to tighten your belt and get new income.
What is failing?
The economy is like a table with three legs: monetary policy, fiscal policy and the stability of the financial system. The latter, fortunately, is fine, is solid, we have good indicators of solvency and liquidity.
Monetary policy is doing its job, but there is a fiscal mismatch. And when that happens, it means that the other legs of the table begin to suffer and then, they have to make a greater effort. If here the fiscal was solved, surely monetary policy could be much more expansive.
(Besides: Territorial Development Bank announced the addition of $ 4.9 billion).
And when these two factors work, it is easier for the financial sector to provide, to accompany the productive sector in investment and consumption.
This year we have to go step by step, but the Republic Bank already showed that the investment began to rebound. All banks and, especially, this, we are ready to accompany entrepreneurs in their investment programs.
But the government says that credit pact goes below the goals …
It is a great idea and an agreement for the financial sector to support the growth of the economy. But the activity of lending has risks that are being seen in the economy in general. Then, one cannot separate what happens with the economy with what happens in the financial sector. They always go hand in hand. I hope that throughout the year those goals recover.
And how does political uncertainty read?
All life we have had uncertainties in political issues, but this country has huge perspectives and future and things must be done already. We cannot be waiting tomorrow or the day after tomorrow, you have to build and working this year for what is coming.
How is digitalization in the bank?
The financial system has changed a lot for digitalization and because the entities put their clients in the center of their businesses. The third element is that digitalization and work better with customers will allow a good development of the immediate payment system, an idea that exists in other countries and in which the Aval Group supports the Bank of the Republic initiative to create the BRE-B System.
(You may be interested: Transfiya exceeds 20 million users in Colombia).
What products will the bank customers have?
We will remunerate or give profitability to the ‘pockets’ of savings accounts. These pockets allow financial planning by having each of them for specific purposes. We also look at the possibility of incorporating the remittance service that is not within our portfolio.
Additionally, in alliance with Carroya and Mastercard, we offer the Carroya credit card that provides relief to drivers by allowing them to access benefits and discounts throughout the mobility ecosystem. In addition, it offers cashback and discounts on vehicle maintenance, technicomecanic reviews, toll payments, parking and gasoline purchases and national and international purchases.
*Aval Group is a shareholder of the AV Villas Bank and owner of Casa Editorial El Tiempo, owner of Portfolio.
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