Juan Pablo Cruz, as president of the financing company Giros y Finanzas, which has a long alliance with the multinational firm Western Union, led the way to conversion into a banknumber 29 in the Colombian financial system and which began operations on September 1st.
(Interests would rise: what is the usury rate and why should you care).
Why turn Giros y Finanzas into a bank?
We already had the necessary capital and the shareholders accepted it and that makes it easier for us to communicate with clients. The communication of our products is facilitated by the word bank. From Thursday, September 1, the image appeared in our 189 offices and digital channels. We also have 8,000 banking correspondents.
Less than two decades ago there was a Union Bank.
It was the Colombian Union Bank. We, as Banco Unión, agent of Western Union, want to be the union of Colombians and their families abroad.
We are going to be faithful to that bond between immigrants and their families in Colombia and we are going to continue offering them products and services around the segments of remittances. If we get more customers we will serve them. We will cross-sell products to those Colombians. And to those who are outside the country, a portfolio with mortgage credit for when they return or to have as an investment.
Also, an application for them to manage savings from abroad and make transfers to other banks, pay for services and that their families can withdraw here.
Tell me about the bank figures…
We have 1,400 employees and as the business grows more will be hired, but that will be dictated by the market. We will continue the presence with the coverage of each city.
We are strong in Valle del Cauca because it is our origin and it is also the department that receives the most remittances. Almost 30% of those who arrive in the country and not only Cali, but to cities such as Palmira, Buga, Tuluá, among others.
In the department we have 50 offices. During 2021 we brought in US$2,000 million in remittances, a figure that will behave in a similar way this year.
(Greedflation: companies use hikes to generate excessive profits).
What will be the bank’s niche?
We will be a bank for people, especially offering consumer credit, not for companies.
This year we are going to close over $600,000 million in credit portfolio, growing between 25 and 30% compared to 2021 and we are going to grow 20% annually in savings accounts and CDTs.
How have the rates behaved with the increases of the Banco de la República?
The increase has been much more pronounced in CDT than in loans. This means that banks are tightening their margins. The rates are going to remain high and that is going to affect the results of the next year.
What is the digital strategy?
It is an increasingly important issue. Almost 30% of remittances are received digitally and we are about to digitize more products as the market demands it.
How do they do to give mortgage credit to those who are outside?
We are going to keep it because we learned to evaluate them outside to lend them. Outside we do it with the credit bureaus and mechanisms to corroborate the sources of income. In new housing how they have behaved paying.
(The Colombian fintech Áltica, with the magnifying glass on Mexico).
What other things will they offer?
Account for the Colombian outside to open it. Buy and sell currencies so that people can do it digitally and we take it home. Average cash purchases at our offices are US$250.
On the subject of insurance, some policies for these emigrants and insurance policies to protect families in Colombia. We place more than a million microinsurance a year, including repatriation, which covers repatriation expenses in the event of death abroad.
Will they issue bonds or other types of titles such as shares?
We will eventually enter the capital market now that the mortgage portfolio is growing and longer-term resources are needed. In actions it is not foreseen.
Main sustainability aspects of the bank?
We are eliminating paper, even in offices. 97% of the CDTs are dematerialized and this is how we have been evolving in the paperless operation.
67% of bank officials are women and it is not a forced issue, but rather it has come naturally.
In addition, we have made an effort to bankarization since many of the clients did not have financial products before having them with us.
We have 1.2 million clients and the transfer to a bank will not mean increases in rates, costs or commissions.
BRIEFCASE
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