A little more than 10 years ago, the colombian government performed a study of business competitiveness in Colombia and arrive at the conclusion that 65% of the time spent in administrative procedures was on the settlement and payment of social security.
To perform the settlement and payment of social security a company had to be up-to-date and understand the current legislation. Further, they had to perform manual calculations for each employee of its company (based on changes in salary and other factors). This process was recurrent, every month.
When the settlement was finished, and the payment time was due, each company had to fill out a form (sheet of paper) for each social security provider (healthcare, pension fund, assurance, among others) and they had to go to a nearest bank where each provider allowed payments to happen to finally perform the payment. Given the exclusivity of providers and banks working in partnership (you couldn’t go to any bank and pay), for one single employee, to pay for their social security, the company could go—and wait in line—to 5 banks.
The social security providers received the forms to complete all the internal consolidation and portfolio processes. But only a month after the payment, the funds were available to the social security providers. Quality of the service and operation were put at risk.
There was no process traceability—the government couldn’t monitor or control social security funds, threatening transparency in the use of these social security funds.