Since mid-March, interest rates for credit card purchases in Colombia have fallen by around 20 percentage points, as a measure to maintain the financial wellbeing of users, boost the country’s economy and continue increasing the levels of financial inclusion, which benefits both financial institutions and users.
The announcement of the rate cuts was made by most of the largest financial institutions in Colombia, such as Bancolombia, Banco Davivienda, Banco Pichincha, BBVA, Scotiabank Colpatria and entities of the Aval Group, at a time when the usury rate is registering a historic high of 46.26%, as part of the measures taken by the Bank of the Republic to curb inflation, which reached a level not seen since 1999.
Credit cards in Colombia seek relief for consumers
“This reduction aims to make credit cards in Colombia the financial product that brings the most benefits to users of the financial system, since from March onwards, their use will not impact consumers’ wallets as much,” declared Juan Carlos Mora, President of Bancolombia, the first financial institution in the country to announce the reduction of interest rates on its cards.
This reduction applies mainly to purchases in supermarkets, drugstores, health services and education, which are essential expenses for users and where financial institutions have a market with great growth possibilities.
In addition, promoting access to credit benefits both users and the financial system, as it has a positive impact on financial inclusion, consumption and the economy, and at the same time increases credit placement and the development of the payment methods ecosystem in the country.
Despite the current economic situation in the country and the world, the Colombian financial sector has stood out for its constant growth in the last two decades, with important advances in market coverage, in the number of entities, in the diversity of offerings, in the soundness of the system, in regulatory areas and as a reference for the adoption and execution of good practices worldwide, which must be preserved despite the current limitations of the economy.
Increase your credit card usage with instant delivery
In this financial scenario with a historical usury rate, credit cards are the most beneficial product for users and delivering a card instantly in supermarkets, bank offices or even self-service kiosks, can be a great growth opportunity for financial institutions.
Our CaaS solution enables the instant issuance of physical and digital credit and debit cards at retail outlets, self-service kiosks, or other strategic locations for customer acquisition, helping to increase card placement and activation rates by delivering the product instantly, at the moment users really need it. Especially in Colombia, offering an instant card can greatly benefit both financial institutions and users.
In addition, with CaaS you can turn the card issuance process into a memorable experience for your customers, and gain different advantages at the operational, technological, service and business levels, as proven by Banco del Pacífico in Ecuador and the financing companies Tuya and Serfinanza in Colombia, among others.
What are you waiting for your bank, financial retail or Fintech to become a leader in CaaS-enabled card issuance? Discover other financial institutions that have achieved leadership in issuance with this solution.