The document summarizes Colombia's efforts to collect financial inclusion data from the supply side. It describes how Colombia established a baseline to measure progress, identified underserved areas, and designed evidence-based policies. The Financial Inclusion Report is a joint effort between Banca de las Oportunidades and Superfinanciera, and covers indicators like access points, account ownership, credit products, and transaction channels. While usage has increased, dormancy remains high in rural areas. Ongoing work includes indicators for financial literacy, consumer protection, and mobile financial services. Cooperation between institutions and using established frameworks like the FIDWG core set are important to policymakers.

1. IFC Workshop on Financial Inclusion Indicators
Co-hosted by Bank Negara Malaysia
5 – 6 Nov 2012, Sasana Kijang, Kuala Lumpur
Collecting financial inclusion information from the supply side:
the Colombian case1
Ana Maria Garcia, Alliance for Financial Inclusion
1
This presentation was prepared for the workshop. The views expressed are those of the author and do not necessarily reflect the views of the BIS or the central banks and
other institutions represented at the workshop.

2. Bringing Smart Policies to Life
Workshop on Financial Inclusion Indicators
Kuala Lumpur, Malaysia
November 5, 2012
Ms. Ana Maria GARCIA
Collecting FI information from the supply side: The Colombian case

3. Colombia at a glance
• Region: Latin America
• Adult population (18+): 30 million
• GDP: US$ 328 billion (2011)
• GDP per capita: US$ 7.114 (2011)
• GINI: 55.9 (2010)
Source: IMF, World Bank, DANE, Wikipedia (image)
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4. Financial system
35,4%
35,5%
20%
22%
24%
26%
28%
30%
32%
34%
36%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Domesticcredit(%GDP)
year
Source: Financial Superintendency of Colombia - SFC Source: World Bank & SFC
Colombia has recovered the financial deepening after the
1998 crisis, but it still remains below the regional average
level.
16,6
40,1
61,4
71,2
35,5
26,1 23,7
41,1
91,8
26,4
32,4
Argentina
Bolivia
Brazil
Chile
Colombia
Mexico
Uruguay
Paraguay
Panama
Peru
Ecuador
Creditprivatesector(%GDP)
Country
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5. Why measure?
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To establish base line in order to measure the progress the
financial inclusion in Colombia.
• To identify the underserved  geographically and by
segment of population
• To promote the design of policies based on
evidences.
• To monitor the status of financial inclusion in the
country and measure the impact of new policies.

6. Policies in FI
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• Agent banking: The SFC authorized credit institutions to
offer their product and services trough a third party.
• Microcredit: Agreements with banking sector to provide
microcredits to people without previous access to financial
system.
• Basic Savings accounts: with two withdraws and one
balance inquiry cost free per month, no minimum balance
required and with simplified KYC requirements.
• Simplified process for opening saving accounts: just
one per person and with some requirements on the
balance per month.
• Mobile Financial Services: SFC allowed to operate agent
banking and basic savings through all electronic devices
as cell phones.

7. Financial Inclusion report
Main criteria
I. Use previous experiences and definitions – FIDWG core
set and members knowledge
II. Use the current data
III. Coordination between governmental institutions
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Banca de las Oportunidades (BdO)
+
Superfinanciera (SFC)

8. Institutions included on the report
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Credit
Institutions
monitored by
SFC
Centralized
information
by BdO
By SFC
* Banks
* Finance Companies
* Financial corporations
* Credit and saving union
monitored by SFC
By BdO:
* Credit and saving union
monitored by SES
* NGO’s

9. Main indicators
Access:
1. Contact points per 10.000 adults
2. Contact points per 1.000 km2
3. Presence per municipality.
Use:
1. % adults with at least a financial product
2. Saving accounts per 10.000 adults
3. % dormant accounts
4. Accounts per balance
5. Adults with a credit account
6. Adults with credit card
7. Transactions per channel
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10. AFI | Kuala Lumpur | 11.05.12 | Page 9
Dimension: ACCESS
Source: BdO, SFC
The number of contact points has increased, mostly
on those who can perform cash-in and cash-out
operations
46,5
54,7
61,7
66,1
3,9 4,1 5,5 7,6
0
10
20
30
40
50
60
70
2008 2009 2010 2011
Contacpoints
year
Contact points per 10.000 adults
Total Branches+ Agents
138,9
166,5
191,4
209,5
11,6 12,6 16,8 24,2
0
30
60
90
120
150
180
210
240
2008 2009 2010 2011
Contacpoints
year
Contact Points per 1.000 km2
Total Branches+ Agents

11. AFI | Kuala Lumpur | 11.05.12 | Page 10
CP per 10.000 adults
2,2
2,2
2,2
2,1
0 1 2 3 4 5
2008
2009
2010
2011
Branches
1,7
1,9
3,3
5,5
0 1 2 3 4 5
2008
2009
2010
2011
Agent Banking
3
3,2
3,4
3,6
0 1 2 3 4 5
2008
2009
2010
2011
ATM
39,6
47,4
52,8
54,9
0 20 40 60
2008
2009
2010
2011
POS
Source: BdO, SFC
Agents provide
financial
services in
places with
difficult access
and include
self-excluded
people

12. Size of the population
Without
coverage
Just
branches
Just
Agents
Branches
and
agents
until 10.000 inhabitants 57 167 133 67
10.001 - 50.000 inhabitants 12 174 83 293
50.001 - 100.000 inhabitants 1 2 1 53
Más de 100.000 inhabitants 0 0 2 57
Total 70 343 219 470
2008
Size of the population
without
coverage
Just
branches
Just
Agents
Branches
and
agents
until 10.000 inhabitants 5 83 176 158
10.001 - 50.000 inhabitants 6 89 84 380
50.001 - 100.000 inhabitants 0 1 1 58
Más de 100.000 inhabitants 0 0 0 61
Total 11 173 261 657
2011
Per population in municipalities
Number of municipalities
Source: BdO, SFC
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13. Municipalities and contact point
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14. AFI | Kuala Lumpur | 11.05.12 | Page 13
USAGE - Deposits
51,1%
55,2% 55,5%
57,3%
62,2%
64,6%
27,6
28,1
28,7
29,2
29,8
30,3
26
27
28
29
30
31
50%
55%
60%
65%
70%
Dec-2006 Dec-2007 Dec-2008 Dec-2009 Dec-2010 Dec-2011
numberofadults(000000)
Percentajeofadults
% adults withat least one financial product
indicator (%) adult population (millions) - right axis
Source: Colombian Banking Association – Asobancaria –
The growth rate of last
years is based on the
number of basic saving
accounts which are
mainly used to deliver
CCT programs.
Dic-2006 Dic-2007 Dic-2008 Dic-2009 Dic-2010 Dic-2011
Saving accounts 13 15 15 16 17 19
Current accounts 1,4 1,5 1,5 1,3 1,4 1,5
Product
Adults IDs (millions)

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Number of accounts per 10.000 adults
10 001 10 096
11 271
11 897
4 905
5 343
6 155
6 858
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
2008 2009 2010 2011
#savingaccountsper10,000adultos
Year
Totalsavings account Active savingsaccounts
USAGE - Deposits
Even though the number of accounts per 10.000 adults has
increased, the number of dormant accounts are still
significant
10 001 10 096
11 271
11 897
930 937 812 808
-
2 000
4 000
6 000
8 000
10 000
12 000
14 000
2008 2009 2010 2011
#accountsper10000adults
year
Total savings account current account
Source: BdO, SFC

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Savings accounts per 10.000 adults
Source: BdO, SFC

17. AFI | Kuala Lumpur | 11.05.12 | Page 16
Dic-2006 Dic-2007 Dic-2008 Dic-2009 Dic-2010 Dic-2011
Consumer 2,7 3,7 4,3 3,6 4,1 4,3
Housing 0,5 0,5 0,6 0,6 0,7 0,7
Microcredit 0,5 0,6 0,7 1,1 1,2 1,5
Credit cards 3,3 3,7 3,9 4,7 5,2 5,5
Product
Adults IDs (millions)
USAGE - Credits
Dic-2006 Dic-2007 Dic-2008 Dic-2009 Dic-2010 Dic-2011
Consumer 10% 13% 15% 12% 14% 14%
Housing 2% 2% 2% 2% 2% 2%
Microcredit 2% 2% 2% 4% 4% 5%
Credit cards 12% 13% 14% 16% 17% 18%
Product
Adults IDs (millions)
Source: Colombian Banking Association – Asobancaria –
Indicators on credits showed an improvement during the last
four years, microcredit presented an impressive growing
path.

18. 9,4
13,4
7,5
8,5
9,5
10,5
11,5
12,5
13,5
14,5
6,5
7,0
7,5
8,0
8,5
9,0
9,5
janv.-09
juin-09
nov.-09
avr.-10
sept.-10
févr.-11
juil.-11
déc.-11
Balancesincreditcards(thousendof
billions)$
Meses
Number ofCredit cards Balances of credit cads
Totalnumberotcreditcards
USAGE – Credits cards
The growing rate on credit cards balances it is due to the
use as replacement of credits for consumer purposes.
Source: SFC

19. AFI | Kuala Lumpur | 11.05.12 | Page 18
USAGE – Transactions per channel
30,8% 28,0% 26,7% 25,3%
26,1%
24,8%
22,6% 22,1%
9,2%
9,7%
10,0% 10,7%
22,2%
26,6%
30,1% 31,0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011
numberofoperationpertransactionalchannel(%)
Año
AgentBanking
Automatic
payments
ACH
Mobile
Internet
call center
POS
ATM
Branches
2,2 billion 2,3 billion 2,4billion 2,6billion
Source: BdO, SFC

20. AFI | Kuala Lumpur | 11.05.12 | Page 19
Work in progress
• Financial literacy and consumer protection
indicators (as for example number of complains).
• Finding the optimums point between collection data
by municipality with this purpose.
• Indicators for MFS

21. AFI | Kuala Lumpur | 11.05.12 | Page 20
Take away
• In terms of financial inclusion
• Usage of financial products and services is
crucial design of correct products, financial
literacy and consumer protection
• Small municipalities, rural areas are places with
major number of dormant accounts.
• In terms of report:
• Cooperation is really important
• There is no necessity of invent the wheel
(FIDWG don it and it is doing it)
• For policymakers, the support on this kind of
strategies is important.

22. Thank you!