Colombia | Financial Inclusion and Productivity: A Structural Look at Financial Inclusion

Summary

Structural analysis of financial inclusion and productivity, presented at the launch of the 2024 Financial Inclusion Report (RIF) by Banca de las Oportunidades and Superfinanciera. Despite near-universal deposit access and increased credit, pending tasks remain to boost productivity, growth, and well-being.

Key points

• Key points:
• Access to deposit products in Colombia is almost universal, with 95.8% of adults having access to deposits (equivalent to 37 million adults). However, the use of these products does not keep pace with access, as evidenced by the fact that the use of deposit products is 86%.
• Financial inclusion presents significant disparities by rurality, with universal access in urban areas versus 65.6% in rural areas; by gender, where 99.4% of men have access compared to 92.5% of women (a gap that increased from 4.6 percentage points in 2018 to 6.9 percentage points in 2024); and by age, with older adults showing lower adoption of digital products and less access to credit.
• Financial exclusion reduces productivity, limits growth, and deepens inequalities. This is manifested in the lack of capacity to respond to emergencies, exposure to informal credits with very high costs (382% annual on average for individuals and 667% annual for businesses), and lack of protection against risks such as natural disasters, with only 4% of crops insured.
• Mobile internet connection has grown, with 78 out of every 100 people having access. This digitalization is seen as a way to go further in financial inclusion.
• Financial inclusion drives formality, leading to greater traceability of economic activity and an increase in tax collection. This, in turn, allows for greater public investment in education, health, and infrastructure, improving income, job stability, and access to credit, which ultimately reduces inequality, boosts productivity, and strengthens business growth.

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