Latin America’s fintech market is booming–and Colombia is one of the LatAm countries at the forefront of the region's financial innovation surge. A new study from Finnovista, in collaboration with Galileo and Mastercard, revealed several key insights into the rapidly evolving Colombian fintech ecosystem, including the most important trends and developments that are shaping the market–and driving high-potential opportunities for providers based both domestically and abroad.

The Colombian fintech boom by the numbers

The number of domestic-headquartered fintechs operating in Colombia grew to 394 as of April 2024, nearly double the 200 Colombian fintechs that were up and running in the country just four years earlier, according to the newly released, seventh annual Fintech Radar Colombia report.

Notably, this growth has steadily stabilized over that period, with churn and volatility trending downward; the exit rate for Colombian fintechs was just 12.7 percent between 2023 and 2024, a decrease from nearly 18 percent over the span from 2021 to 2022, the study found.

Galileo Accelerates Latin American Growth with Expansion into Colombia

Among Colombian fintechs, lending and payments/remittances were the dominant service segments, comprising 28.4 percent and 18.5 percent of the market at large. Enterprise financial management (8.4 percent), personal financial management (8.1 percent) and fintech as a service (8.1 percent) rounded out the Top 5.

But it’s not just domestic companies powering the advance of Colombia’s fintech landscape. In addition to the Colombia-based fintechs operating in the country, 169 foreign fintechs also have a presence there, according to the report, comprising 30 percent of the overall market.

We recently spoke with one of our partners in Colombia who's on this list, Mo Credit Management Platform. To learn more about them and watch the interview click the link below.

How Mo and Galileo Are Paving the Way for All Types of Credit

3 key trends shaping Colombia’s fintech landscape

Along with revealing the numbers behind Colombia’s fintech growth, the study also uncovered several key trends and developments that are shaping the market:

1. Neobanks are beefing up their offerings.

Colombia’s digital challenger banks originally offered basic services such as savings accounts and payments, but these neobanks are rapidly adding additional capabilities, such as business management tools. This push toward comprehensive service suites has driven high amounts of collaboration in the digital banking segment, with banks eager to integrate services from third-party providers.

2. Technology is reshaping the lending sector

Interest rate caps and the rising cost of capital have put pressure on Colombia’s lending sector. This pressure has driven accelerated innovation in technologies that improve risk mitigation, leverage alternative data for credit scoring and drive process efficiencies. Meanwhile, some lending fintechs are eyeing the small and midsize business (SMB) sector for potential opportunities, including integration with SMB management software to offer credit through that channel.

3. Open banking legislation opens up new opportunities

Colombian officials are in the midst of solidifying a regulatory framework governing open banking in the country. The establishment of these guidelines is widely expected to provide important clarity and confidence among fintechs–and help them better service their customers. In the Finnovista survey, 83 percent of fintechs polled said open banking regulation would enable them to provide more personalized and enhanced products to their users, as well as increase financial inclusion.

Galileo First to Attain Multi-market Mastercard Certification in Latin America

Want to learn more?

Explore the exciting Colombian fintech scene in our new Fintech Radar report.