In a year of macroeconomic challenges and adjustments in monetary policies, The Colombian banking sector closes 2024 showing resilience and capacity to adapt. With a capitalization of 16%, well above the limits required by international standards, the country’s financial system has maintained its solvency and stability, according to a report carried out by the University of Barcelona on the Colombian banking sector.
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“The good regulatory management of the Financial Superintendency has been key for Colombia to maintain stability in its banking system. But the pressure of an uncertain global economy and competition from new players such as fintechs requires entities to be more agile and creative,” says Jaime Martínez Tascón, professor at OBS Business School.
The banking system’s loan portfolio registered an annual growth of 1.9%, according to data from Grupo Bancolombia. However, Delinquency continues to be a critical point, especially in sectors such as construction and commerce. Despite these difficulties, the financial system managed to maintain a profitability of 7.5% in a context of high competition and moderate demand for new loans.
The Bank of the Republic has played a fundamental role by maintaining high interest rates during 2023 and 2024, as a strategy to control inflation, which in 2023 exceeded 13%. This scenario has made credit more expensive and affected markets such as mortgage and consumer markets. Nevertheless, A relaxation of monetary policy is expected in the near future, which could relieve pressure on financial institutions.
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In the area of financial inclusion, digitalization has been a key driver. More than 85% of the adult population currently accesses financial services, largely thanks to the growth of fintechs. These companies have managed to penetrate rural areas and among traditionally less banked sectors, transforming the country’s financial landscape.
“Digitalization has been a key factor in this expansion, as more and more people use digital banking, mobile payment platforms and financial applications. “Traditional banks have accelerated their digital transformation, offering innovative products and adapting their services to new market demands,” points out Martínez Tascón.
The sector also faces growing competition from digital banks and fintechs. These organizations have not only improved access to financial services, but have also raised consumer expectations regarding the quality and efficiency of banking products. The pressure from these new actors is leading traditional entities to accelerate their innovation processes.
In the regulatory context, the Financial Superintendency has played a crucial role in guaranteeing the stability of the system. Current regulations ensure that banks maintain adequate levels of capitalization, which allows them to face eventual economic shocks without compromising their solvency.
OBS Business School, the institution that analyzes these trends, highlights that the sustainability of the banking sector will largely depend on its ability to consolidate itself in the digital environment and adapt to market changes. Its director, Jaime Martínez Tascón, highlights the importance of agile and resilient management to face the challenges of the coming years.
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“The outlook for the Colombian banking sector is one of moderate recovery. The easing of monetary policy, coupled with an improvement in the global macroeconomic environment, is expected to boost credit demand and improve non-performing loans indicators. “Digitization and the growth of fintechs will continue to be key drivers for the sector, while competition will continue to raise the level of innovation and service,” concludes the expert.
The report also highlights how digital transformation has been decisive in the evolution of the Colombian banking sector. The adoption of new technologies and collaboration with fintechs has expanded the reach of financial services, allowing for greater inclusion. This has been reflected in broader and more diverse access to services such as credit, payments and savings.
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