Update on Regulation of Branchless Banking in Colombia

Presenting CGAP's findings on branchless banking regulation in Columbia

This update of CGAP’s 2008 "Diagnostic Report on the Legal and Regulatory Environment for Branchless Banking in Colombia" incorporates research conducted by CGAP in January 2010. It is one of 11 country updates produced by CGAP as a part of the G20 Access through Innovation (ATI) Sub-Group’s workplan.

The paper states that despite the flexibility of the agent regulation, banks’ use of agents has not increased in Columbia. The model has not presented an appealing business case for either banks or agents. The uptake of present models of mobile banking and e-money has been rather low. Banca de las Oportunidades, a long-term policy program aimed at expanding access to financial services for adult Colombians, successfully advocated for several recent regulatory changes, such as the agency regulation in 2006, and the creation of low-value savings accounts. The current legal framework for branchless banking covers:

  • Agents;
  • Anti-money laundering/combating financing of terrorism (AML/CFT);
  • Banking business, deposit-taking, and electronic money;
  • Payment systems, payment instruments, remittances and foreign exchange regulation;
  • Consumer protection;
  • Regulation of telecommunication services;
  • Electronic transactions and data Security;
  • Taxation.

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