Executive to Create Digital Product to Pay Allocations: SFC Publishes Financial Sector Report in Health Emergency
Colombia
9 abril 2020

The Executive Power has announced that it will create a digital mobile phone app to allow the beneficiaries of social aid from the informal sector who have no bank accounts, to collect their benefits as from April 9. On the other hand, the Colombian Financial Superintendency (SFC, for its acronym in Spanish) published a report about the operations of the financial system during the Mandatory Quarantine in which the use of non-contact channels for transactions and the credit situation at the national level are duly analyzed. Finally, members of Congress announced that they will summon representatives of the Colombian banks to explain the measures they have taken so far to deal with the economic crisis created by the COVID-19 pandemic.

The Government began the assignment of transfers included under the Executives’ Program of “Solidarity Income”, created to assist informal sector workers in the framework of the COVID-19 emergency. According to the Ministry of Finance, the distribution of resources will be carried out in two stages. The first will consist of fund transfers to those who already have a bank account at a financial institution. The second will consist of launching a “digital product which is easy to use on one’s mobile phone” through the entities AV Villas, Bancolombia, Davivienda and Movii. In this way, beneficiaries without a bank account may receive the subsidy from April 9 to 18. 

The SFC’s report provides information about internet operations and mobile banking within the framework of the mandatory quarantine at national level. In addition, it analyzes the progress whereby grace periods are granted to debtors according to different modalities. These include commercial, consumer and microcredit customers.

Finally, representative Edward Rodríguez (Centro Democrático – ruling party) announced that he will call Colombian banking executives to a hearing where they must render account to Congress concerning the measures adopted during the pandemic. The objective of this meeting will also be to emphasize the need to inform businessmen and the general population about the credit lines promoted by the Government and the banking sector. Senior executives from the Banco de la República, Bancoldex, Banco Agrario, as well as the different presidents of various financial entities will be summoned to the hearing. 

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