In the midst of the context of variability and instability of results that is felt in the Colombian market, the need for safe investments is one of the priorities of those who play in this field and there the CDTs have begun to take on a relevant role, since they have become an interesting alternative.
To learn a little better about this financial mechanism, Portafolio spoke with Carlos Correa, co-founder of MejorCDT, who assured that although this alternative is interesting due to its low risk and high profitability at this time, Favorability is not something that will last forever as the market is changing.
Carlos Correa, founder of MejorCDT.
Courtesy – MejorCDT
At what point are the CDTs?
Today, the product with which Colombians are saving the most money and in which there is the most money saved, are these. This modality, if reviewed in total, adds up to 1.8 million people, which have an average amount of $57 million.
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This is better understood when we say that while the total money invested in savings accounts is $86 billion pesos, in the CDT the sum reaches $107 billion pesos deposited. This shows that they are in a very good moment, with a very good profitability, even above inflation, even above what an average company in Colombia could be renting as final profit.
CDT.
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Are there no longer those levels of 16% profitability?
Not at that point, but it is still a very good alternative, there are options that are offering more than 11% profitability, when an average company in final profit after the year, after taxes, is leaving you between 7% or 8%. It is a high level of profit, which becomes more attractive when you take into account that this is without taking risks, without operationally taking care of anything, it ends up being very attractive for people.
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How long will this streak last?
One of the elements that drives CDTs to be so profitable is the same inflation that exists in Colombia. What happens is that the more inflation there is, the higher the rates at which the Banco de la República lends to the banks. When you think that a bank is a big business, it is partly because even the Government itself lends money to the banks when it needs it, but with certain conditions.
They lend them at a rate, and that rate is closely related to the policy that the Bank of the Republic wants to have in the economy. If inflation is very high, the Bank of the Republic raises the rates at which banks lend to them, and this causes the banks’ CDT rates to also rise in that same proportion.
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Would you dare to give a deadline?
As long as inflation remains high, the Bank of the Republic will most likely want to lower it, and to lower it it raises rates, and to raise rates it keeps the CDTs high. So it is very likely that for the time being, as long as inflation is above 5%, we will find alternatives for 8% or 9%.
CDT
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With this said, let’s not forget that inflation is at 7%, while the estimates of the Bank of the Republic are given that inflation will be close to 4%, perhaps in December of this year or perhaps March of next year. As long as that does not happen, we will easily find CDT above 8% and in this case above 11%.
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Are these rates maintained?
CDTs by their very nature have a fixed rate that is maintained during the term, but when that term ends, it must be renegotiated again at the rate that is agreeable to both parties and most likely at some point the bank will say, the situation has changed, the rates have changed, now I offer you this.
Colombian pesos
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What that basically generates is that people analyze If what is attractive today will remain the same in the coming months. This is why we consider that we should take advantage of the moment because it is not something that will be repeated soon once all the phenomena that we are currently seeing pass.
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How to choose good alternatives?
When you are analyzing which bank to choose to open a CDT, it is important to look at what type of person that bank is lending money to, and whether it is generating profits in Colombia or not. There are banks in Colombia that are currently generating losses, especially the newest and most digital ones that are at a very high investment price and generate losses. That is something that needs to be reviewed.
On the other hand, you have to look at the risk rating that the entities have and that is where the rating agencies come into play. Banks in Colombia are generally rated A upwards, where A is good strength and AAA is much better strength and also backed by international guarantees. So from A upwards you have very good and very solid entities.
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Are there risks with virtuality?
I think that competition in general in Colombia is very good and in the world it is very good that there is competition. If there are financial entities that have not wanted to make that leap to making the processes digital, that despite the pandemic they still ask people to sign documents in person, go to endorse or receive checks in person when everything can be much more technological, I think that naturally these entities are going to suffer for not having the facility to be part of the technological world.
Carlos Correa, founder of MejorCDT.
Courtesy – MejorCDT
There are entities that have benefited a lot from being on platforms like ours, because they are completely modernized and can offer their clients a completely digital CDT, while on their own channels, on their own website, they still cannot offer it. to the client. Those entities that have not yet joined this technological network are going to suffer because clients are going to look for other alternatives.
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It has happened in other markets…
An example of this could be travel agencies. 30 years ago one could not travel outside the country without personally purchasing a ticket at an Aviatur office, today Desparar.com, and that is no longer the case because there are other digital ticket sales services that have better results and more quantity. of users than the same old traditional offices.
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Personally, I no longer want to go and get on transportation to go to an office in person, when I can do it from my cell phone or from my computer. The same will happen with CDTs and savings accounts. Our children and our children’s children are going to use digital platforms to open their CDT in any bank and they are going to want to buy and open it easily and that is where virtuality will become important.
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