At the close of the first half of 2024the costs of services provided by financial institutions generally registered a slight decrease compared to the same period in 2023.
This situation had several explanations, among them the economic slowdown, the high interest rate environmentwhich have nevertheless been gradually decreasing, the sharp slowdown and deterioration of creditas well as results dominated by lower profits of the entities, as well as losses in 11 of the 30 banks (with figures up to May).
(You can read: Banks that have lowered their interest rates for housing loans in Colombia).
The information presented by the Financial Supervision corresponds to figures submitted by the Credit Institutions and Companies Specialized in Electronic Deposits and Payments as of June 30, 2024 and refers to savings account products, low-amount and ordinary deposits, and credit cards.
Regarding savings account values, they correspond to the rates referred to the management of traditional or standard accounts.
Credit card
All franchises
In addition, the supervisory and control entity published the information corresponding to the credit cards managed by the institutions with the different franchises: Visa Classic, Gold and Platinum and Mastercard Basic, Classic, Gold, Platinum and Black; American Express Blue, Green and Gold; Diners and those of other credit institutionswhich they have been developing in recent years.
The credit card interest rates They correspond to a weighted average of those collected in purchase and advance transactions made during the week of June 24 to 28, 2024, exceeding one month in duration.
(Also: Why credit card cancellations and blockings have increased in the country).
The usury rate continued its downward trend, which began in the first months of 2023 after banks started an interest rate competition.
According to the Colombian Financial Superintendence, this indicator for June was 30.84%, which represented a reduction compared to the usury rate for May, which was 31.53%.
Credit card
Interest rates are coming down
Thus, last June, according to the figures reported by the entities to the Financial Superintendence, in terms of credit cards, the highest rates corresponded to the cards of the Falabella Bankwith 30.80% effective annual, followed by Union Bankwith 30.60%, Yourswith 30.45% EA, Coltefinancierawith 30.43% EA and Bancolombiawith 30.21%.
For its part, the lowest rates, according to Superfinanciera reports, corresponded to credit cards Coopcentralwith 22.05% EA, Finandinawith 25.35%, Western Bank*with 26.06% EA, agrarian Bankwith 26.57% EA, AV Villas Bank*with 27.35% EA, Popular Bank* with 27.90% EA, Ban100 with 27.93%, Bancoomeva with 28.09% EA Jusriscoop Financialwith 28.32% EA and Bank of Bogota* with 28.38% EA
(More: Visa and Mastercard extend cap on non-EU card fees).
However, although the highest interest rates on credit cards were close to the usury rate indicated for the sixth month of this year, of 30.84% EA, compared to the same month in 2023, the decrease is appreciable, since the usury rate in that month last year was 44.64% E. A..
For its part, the usury rate for consumer and ordinary credit that is in effect between July 1 and July 31, 2024 is 29.49% effective annual.
Credit card
However, as explained by the Financial Superintendency, These rates may vary depending on the contractual modality or the agreement entered into by the financial consumer with the financial institution..
(Read more: Why do fewer and fewer people prefer to use cash?)
On the other hand, in the report that 28 banks made to the Superintendency of Finance in May, 14 charge a management fee for their debit cards, with costs ranging from $8,177 to $19,750.
As for the fees that banks charge their clients for cash withdrawals from ATMs other than their own, virtually all of them have rates ranging from $5,000 to $7,700.
HOLMAN RODRIGUEZ MARTINEZ
Portfolio Journalist
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