The financial sector of a country is one important pillar of the economic and social development of a country. The relationship between banks and population has changed drastically through the years thanks to technological advancement of new generations. However, financial inclusion in Colombia is far below the optimal levels. Further, customer satisfaction with the financial ecosystem is low, a clear need for improvement. Despite all the technological advancement, banks still find many difficulties to be able to implement changes that allow them to come together to the final users and provide more efficient service, that turns to more financial inclusion with significant savings.
Applying for a financial product still is time consuming and includes multiple paper work, like forms, certifications, and financial statements. In addition, many times the customer needs to go to a bank location, which generates congestion and high costs for the banks. The credit-risk analysis usually takes weeks and the final user doesn’t know the status of the process.
The credit-risk analysis by the financial entity doesn’t possess enough information, online and verified, to update the analysis. For instance, to verify the labor certification there has to be a manual certification that means high scots for the entity and very long times to respond to request by the clients. In many cases, credit bureaus don’t have enough information, and encompass enough of all population, to perform a complete credit risk analysis. This leaves the majority of the population out of the financial sector, leaving them no other choice than to find illegal lending (unsafe, high-risk, and exorbitant interest rates).
In conclusion, the financial sector is not prepared to tackle drastic changes and disruption that high impact startups have generated, like Uber, Airbnb, and Facebook.