Fintech in Colombia - statistics & facts
Colombia’s fintech industry is on the rise, becoming one of the major fintech hubs in Latin America. Along with Brazil and Mexico, Colombia is among the top three Latin American countries when it comes to fintech companies. The number of Colombian fintechs increased steadily in the last several years, with nearly 400 fintech companies operating in the country in 2024, representing over 13 percent of the fintech landscape in Latin America. In addition, the country recently surpassed Argentina and Chile in terms of venture capital investment targeted at fintechs in the region.
Despite the progress, there are some ongoing challenges worth noting. Fintech investment activity declined sharply in 2023, mirroring the global downturn in fintech investments. Additionally, while there has been some progress, online banking penetration in Colombia remains relatively low, indicating that there is still significant room for growth in this area.
Colombia’s fintech sector is rapidly emerging as a key player in Latin America, driven by growth in the number of companies. While challenges like fluctuating investment and low online banking penetration remain, the rising adoption of AI signals a promising future.
Despite the progress, there are some ongoing challenges worth noting. Fintech investment activity declined sharply in 2023, mirroring the global downturn in fintech investments. Additionally, while there has been some progress, online banking penetration in Colombia remains relatively low, indicating that there is still significant room for growth in this area.
How is Colombia’s fintech landscape structured?
Colombia’s fintech landscape has expanded significantly in recent years, with the number of fintech companies steadily increasing. As of 2024, the lending segment held the highest share of fintechs in the country, followed by the payments and remittances sectors. Despite this growth, profitability remains a challenge for many of these companies. In 2023, over half of all fintechs in Colombia reported annual revenues of less than 500,000 U.S. dollars, indicating that while the sector is growing, financial success is not yet widespread. In terms of target market, nearly one-third of Colombian fintechs focus on serving underbanked people, highlighting the industry’s role in addressing financial inclusion.Key fintech trends: the rise of AI in the fintech sector
One of the key trends in the Colombian fintech sector is the rapid implementation of artificial intelligence (AI). In 2023, the country was among the leading Latin American countries in terms of AI readiness, including infrastructure, talent, research, development, and governance, setting it apart from many of its regional peers. Among the various technologies reshaping the sector, AI saw the most significant rise in adoption between 2023 and 2024. This growth is particularly evident in its applications for decision-making processes and task automation, the two most prominent business segments in terms of AI usage.Colombia’s fintech sector is rapidly emerging as a key player in Latin America, driven by growth in the number of companies. While challenges like fluctuating investment and low online banking penetration remain, the rising adoption of AI signals a promising future.
