Consumer Finance in Colombia
Euromonitor International's Consumer Finance in Colombia report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
Buy online to access strategic market analysis and an interactive statistical database of value and volume for retail and internet transactions, number of cards in circulation and company brand shares.
Tables: 106 | Publication date: Feb 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Consumer lending; Financial cards and payments
Executive summary
Slower, but Still Strong Growth
Growth in terms of new cards in circulation saw a marked slowdown in 2008, but even this much slower growth remained impressive in Colombia. The slowing growth was largely the result of declining consumption and the unsustainability of the incredible growth the financial cards industry witnessed in 2006 and 2007, and sectors such as debit cards beginning to show some signs of maturity. On the other hand, the growth in transaction value largely kept up its strong pace as card payments continued their incursion into cash and cheques.
Bringing the Unbanked on Board
The low-income segments of the population continue to be the major driver behind growth, with most major players looking for new ways to bring the large mass of underserved Colombians into the banking system. Everyone is in on the act, including the government, major players in the banking industry such as BCSC (a bank dedicated to the social goal of eradicating poverty), energy companies such as Codensa, and card operators. While many of these players have been following this strategy for years, new approaches are being developed, such as Visa's offer of payments by instalment on debit cards in select retailers in 2007. Despite concerns about increasing default rates, all the major players know that a strong position among the unbanked population is necessary for future growth.
Diving into New Territory
Colombian banks are continually looking for new ways to attract the low-income population, and to do so they are beginning to look in some unusual places. The Government's strategy to stabilise territory previously held by guerrillas has opened up new geographical regions to the banking system as well as new consumers. In addition, Banco AV Villas has also introduced a card designed for ex-guerrillas or ex-paramilitary soldiers in order to facilitate government payments that subsidise their reintegration into civilian life. Consumer segmentation is occurring in more traditional ways as well, with companies looking to both young and retired individuals for growth among underserved markets.
Bancolombia Continues Its Leadership
Bancolombia remained the leading card issuer in 2007 with slight increases in share of total debit and personal credit cards in circulation as well as aggressive growth into commercial credit cards at the same time that other issuers have turned their attention elsewhere. Nevertheless, the market is competitive and players such as Davivienda and BCSC are catching up to Bancolombia by extensive use of their sales teams and telemarketing to expand their base of clients.
Considerable Growth in the Long Term
With the GDP forecast still moderately strong after declining from the impressive performances of 2006 and 2007, Colombia is expected to continue seeing positive trends in consumption and therefore financial card transactions value. Furthermore, the country continues to have a very high rate of cash and cheque use, indicating that there remains a considerable scope for card growth in the country. Despite concerted efforts to increase the size of the banked population over the review period, the unbanked population remains large and offers many opportunities to innovative companies. As a result, financial cards that effectively target the low-income population, especially store cards and general purpose pre-paid cards, are expected to perform well over the forecast period.
Table of contents
CONSUMER FINANCE IN COLOMBIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Slower, but Still Strong Growth
Bringing the Unbanked on Board
Diving into New Territory
Bancolombia Continues Its Leadership
Considerable Growth in the Long Term
KEY TRENDS AND DEVELOPMENTS
The Approach to the Unbanked Population Continues
Growth of GDP in 2007 Exceeds Expectations, but Declining Growth Expected
Security Improvements Continue to be a Key Issue in Colombia
New Technologies Entered the Market in 2007
Governmental Regulation and Legislation Affect Financial Cards
MARKET DATA
Table 1 Consumer Payments: Value 2003-2008
Table 2 Financial Cards: Number of Cards in Circulation 2003-2008
Table 3 Financial Cards Transactions: Value 2003-2008
Table 4 Financial Cards: Number of Transactions 2003-2008
Table 5 Financial Cards: Number of Accounts 2003-2008
Table 6 Financial Cards: Number of Cards by Issuer 2003-2007
Table 7 Financial Cards: Number of Cards by Operator 2003-2007
Table 8 Financial Cards: Card Payment Transaction Value by Operator 2003-2007
Table 9 Financial Cards: Card Payment Transactions by Acquirer 2003-2007
Table 10 Consumer Payments Forecast: Value 2008-2013
Table 11 Financial Cards Forecast: Number of Cards in Circulation 2008-2013
Table 12 Financial Cards Forecast: Value 2008-2013
Table 13 Financial Cards Forecast: Number of Transactions 2008-2013
Table 14 Financial Cards Forecast: Number of Accounts 2008-2013
MARKET INDICATORS
Table 15 Number of POS Terminals 2004-2008
Table 16 Number of ATMs 2004-2008
Table 17 Disposable Income 2003-2008
Table 18 Value Lost to Fraud 2003-2008
Table 19 Acquirer Fraud 2003-2008
Table 20 Card Expenditure by Location 2008
Table 21 Card Expenditure by Sector 2008
Table 22 Financial Cards in Circulation by Type: % Number of Cards 2004-2008
Table 23 Domestic versus Foreign Spend 2008
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - COLOMBIA
ACH COLOMBIA SA - FINANCIAL CARDS AND PAYMENTS - COLOMBIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 ACH Colombia SA: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
ATH SA - FINANCIAL CARDS AND PAYMENTS - COLOMBIA
STRATEGIC DIRECTION
KEY FACTS
Summary 3 ATH SA: Key Facts
Summary 4 ATH SA: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 5 ATH SA: Competitive Position 2007
BANCO DAVIVIENDA - FINANCIAL CARDS AND PAYMENTS - COLOMBIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Banco Davivienda SA: Key Facts
Summary 7 Banco Davivienda SA: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 8 Banco Davivienda SA: Competitive Position 2007
BANCOLOMBIA SA - FINANCIAL CARDS AND PAYMENTS - COLOMBIA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 BanColombia SA: Key Facts
Summary 10 BanColombia SA: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 11 BanColombia SA: Competitive Position 2007
CODENSA SA ESP - FINANCIAL CARDS AND PAYMENTS - COLOMBIA
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Codensa: Key Facts
Summary 13 Codensa: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
ATM TRANSACTIONS IN COLOMBIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 24 ATM Cards Sector Performance: 2003-2008
Table 25 ATM Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 26 ATM Cards Sector Performance: % Growth 2003-2008
Table 27 ATM Cards in Circulation Sector Performance: % Growth 2003-2008
Table 28 ATM Cards Forecast Sector Performance: 2008-2013
Table 29 ATM Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 30 ATM Cards Forecast Sector Performance: % Growth 2008-2013
Table 31 ATM Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
DEBIT TRANSACTIONS IN COLOMBIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 32 Debit Cards Sector Performance: 2003-2008
Table 33 Debit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 34 Debit Cards Sector Performance: % Growth 2003-2008
Table 35 Debit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 36 Debit Cards: Number of Cards by Issuer 2003-2007
Table 37 Debit Cards: Number of Cards by Operator 2003-2007
Table 38 Debit Cards Transactions by Acquirer 2003-2007
Table 39 Debit Cards Payment Transaction Value by Operator 2003-2007
Table 40 Debit Cards Forecast Sector Performance: 2008-2013
Table 41 Debit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 42 Debit Cards Forecast Sector Performance: % Growth 2008-2013
Table 43 Debit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CREDIT CARD TRANSACTIONS IN COLOMBIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 44 Credit Cards Sector Performance: 2003-2008
Table 45 Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 46 Credit Cards Sector Performance: % Growth 2003-2008
Table 47 Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 48 Personal Credit Cards Sector Performance: 2003-2008
Table 49 Personal Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 50 Personal Credit Cards Sector Performance: % Growth 2003-2008
Table 51 Personal Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 52 Commercial Credit Cards Sector Performance: 2003-2008
Table 53 Commercial Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 54 Commercial Credit Cards Sector Performance: % Growth 2003-2008
Table 55 Commercial Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 56 Credit Cards: Number of Cards by Issuer 2003-2007
Table 57 Credit Cards: Number of Cards by Operator 2003-2007
Table 58 Credit Cards Transactions by Acquirer 2003-2007
Table 59 Credit Cards Payment Transaction Value by Operator 2003-2007
Table 60 Personal Credit Cards Payment Transaction Value by Operator 2003-2007
Table 61 Commercial Credit Cards Payment Transaction Value by Operator 2003-2007
Table 62 Credit Cards Forecast Sector Performance: 2008-2013
Table 63 Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 64 Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 65 Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 66 Personal Credit Cards Forecast Sector Performance: 2008-2013
Table 67 Personal Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 68 Personal Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 69 Personal Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 70 Commercial Credit Cards Forecast Sector Performance: 2008-2013
Table 71 Commercial Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 72 Commercial Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 73 Commercial Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CHARGE CARD TRANSACTIONS IN COLOMBIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
GENERAL PURPOSE PRE-PAID CARD TRANSACTIONS IN COLOMBIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 74 General Purpose Pre-paid Cards Sector Performance: 2003-2008
Table 75 General Purpose Pre-paid Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 76 General Purpose Pre-paid Cards Sector Performance: % Growth 2003-2008
Table 77 General Purpose Pre-paid Cards in Circulation Sector Performance: % Growth 2003-2008
Table 78 General Purpose Pre-paid Cards by Type: % Number of Cards 2004-2008
Table 79 General Purpose Pre-paid Cards: Number of Cards by Operator 2003-2007
Table 80 General Purpose Pre-paid Cards Transaction Value by Operator 2003-2007
Table 81 General Purpose Pre-paid Cards Forecast Sector Performance: 2008-2013
Table 82 General Purpose Pre-paid Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 83 General Purpose Pre-paid Cards Forecast Sector Performance: % Growth 2008-2013
Table 84 General Purpose Pre-paid Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
STORE CARD TRANSACTIONS IN COLOMBIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 85 Store Cards Sector Performance: 2003-2008
Table 86 Store Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 87 Store Cards Sector Performance: % Growth 2003-2008
Table 88 Store Cards in Circulation Sector Performance: % Growth 2003-2008
Table 89 Store Cards: Number of Cards by Issuer 2003-2007
Table 90 Store Cards Forecast Sector Performance: 2008-2013
Table 91 Store Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 92 Store Cards Forecast Sector Performance: % Growth 2008-2013
Table 93 Store Cards in Circulation Forecast Sector Performance: % Growth 2008-2013