How has Colombia provided digital financial transfers to nearly 3 million households severely affected by the pandemic? What steps has the government taken to reach over 1 million households, who are first-time users of mobile money?

1. WWW.BETTERTHANCASH.ORG
Webinar
Public-private
collaboration in Covid-19
emergency payments
response:
Lessons from Colombia
June 30th, 2020

2. 3
Introducing the Speakers
DR. RUTH
GOODWIN-
GROEN
(Moderator)
Managing Director
BetterThan Cash Alliance
ANA MARIA
PRIETO ARIZA
Deputy Director
Financial Regulation Unit
Ministry of Finance,
Colombia
ANDRES
VAZQUEZ
CEO Nequi
By BANCOLOMBIA
HERNANDO
RUBIO
Co-Founder & CEO
Movii
BEATRIZ
MARULANDA
Senior Advisor
BetterThan Cash Alliance

3. 4AGENDA
OVERVIEW CONTEXT
INGRESO SOLIDARIO SCHEME
PUBLIC-PRIVATE COLLABORATION
LESSONS LEARNED AND NEXT STEPS
Q & A

4. OVERVIEW:
AN INNOVATIVE DIGITAL PAYMENTS ECOSYSTEM 5
G2P PAYMENTSTO ACCOUNTS
Government mandated G2P payments to beneficiaries' accounts since 2007.
LOW VALUE PAYMENTS INFRASTRUCTURE
Process of modernization and greater competition. ACH and Fintech sector.
ENABLING REGULATORY ENVIRONMENT
FOR MOBILE WALLETS
Bank-led model. 2015 e-money issuers authorized.
LAST-MILE AGENT NETWORK
Enabling regulatory framework and successful business models are behind.

5. 6
TREASURY COMMITTEDWITH AN
EFFICIENT PAYMENT MECHANISM
Treasury has been flexible enough to adjust procedures for payments to
beneficiaries. Other non-bank FSP can participate in G2P payments.
OVERVIEW:
AN INNOVATIVE DIGITAL PAYMENTS ECOSYSTEM
TELECOMMUNICATIONS INFRASTRUCTURE
Increased access to Internet and smart phone penetration. Telcos provided
incentives for beneficiaries to use the app (free data).
NATIONAL ID AND SOCIAL REGISTRY
Consolidated National Social Registry including all the beneficiaries of social
programs.

6. 7
COVID-19 EMERGENCYTIMELINE
12th March:
President
Duque
declares
Sanitary
Emergency
4th April:
Ingreso Solidario formalized:
Decree 518 and Resolution 975 of the Ministry of Finance
INGRESO SOLIDARIO EMERGENCY SCHEME
6th April - 17th May:
FIRST PAYMENT
Aprox. US$ 42
20th May – 19th June:
SECOND PAYMENT
Aprox. US$ 42
MARCH APRIL MAY JUNE
6th March:
First case of
COVID -19
26th March:
CCTs paid 4
months in
advance
16th March:
Borders
closed
First covid-19
death
reported
25th March:
Mandatory
lockdown
18th -30th June:
THIRD PAYMENT
Aprox. US$ 42

7. 8
INGRESO SOLIDARIO
Key achievements
PRIORITIZE FINANCIAL
INCLUSION
• Identify banked and unbanked
beneficiaries and focus effort on digital
financial inclusion.
• For beneficiaries, financial inclusion
creates short and longer-term benefits.
• Paying digital brings efficiency, savings
and more transparency in budget
management.
2 447 777*
Beneficiaries households reached
57%
( 1 393 858)
Previously banked
households
39%
(950 325)
Households banked by
Ingreso Solidario
4%
(103 594)
Households in rural areas that received
aid through cash transfer
*As of June 27. Source: Ministry of Finance.
CUSTOMER-
CENTRICITY
• Clustered and staged design to
adapt to beneficiaries' different
needs. Eg: Banked vs unbanked,
rural vs urban, featured phone vs
smart phones.

8. 9
OVERVIEW: INGRESO SOLIDARIO
6th April – 17th May:
FIRST PAYMENT
Aprox. US$ 42
20th May- 19th June:
SECOND PAYMENT
Aprox. US$ 42
18th-30th June:
THIRD PAYMENT
Aprox. US$ 42
Banked
households
Digitally
banked
households
via mobile
wallet
Banked
households
WORKING WITH
MUNICIPALITIES
“Unreachable”
beneficiaries
households
178 municipalities
STAGE 1 STAGE 2
Banked
households
Digitally
banked
households
via mobile
wallet
STAGE 1 STAGE 2
RURAL
AREAS PROCESS
Beneficiaries households
without an account
RURAL
AREAS PROCESS
Beneficiaries households
without an account

9. 10
INGRESO SOLIDARIO
Stage 1-Banked beneficiary households
MAIN FEATURES
• 1.4 million beneficiaries
received the payment into
their accounts.
• 22 FSPs participated.
KEY CHALLENGES
• Back office and notification to
beneficiaries.
• Coordination across
government and FSPs.

10. 11
INGRESO SOLIDARIO
Stage 2- Unbanked beneficiaries
MAIN FEATURES
• Almost 1 million unbanked beneficiaries.
• Onboarding centered on beneficiaries’ needs (mobile
wallets for both feature and smart phones and simplified
on-site KYC for rural areas).
• SMS sent daily, providing costless data.
• Communications strategy using diverse methods
• Included a process for rural areas reaching more
100,ooo beneficiaries
KEY CHALLENGES SOLUTIONS
Contacting beneficiaries Create multiple communication channels
(SMS, govt and FSP websites, word-of-mouth, call center,
social media)
Digital financial education and helpline
Cross check cell phone with SISBEN data,
security questions, screening SIM cards
Simplifying onboarding
Mitigating risks of
identifying fraud

11. 12
INGRESO SOLIDARIO (ongoing)
Stage 3- ‘Unreachable’ beneficiary households
MAIN FEATURE
• Ongoing effort to reach 500,000
beneficiaries who are ‘unreachable’ or did
not want to open an account
Mapping of target
households by
municipalities and
by FSPs
KEY CHALLENGES SOLUTIONS
Contacting
beneficiaries
• Work
alongside
municipalities
• Face-to-face
onboarding
Availability and
cost of
mobilizing cash
Deploy more cash
to access points

12. 13
• High level of commitment private sector.
• Government leading the process organically.
• Participative decision-making process, not
mandatory
• Key role of the Banking Association.
• Meetings to discuss the design and co-create
solutions
• Identify strengths of FSPs to better serve the
different clusters of beneficiaries and geographical
regions
SITUATION ROOM: BUILDING
TRUST AMONG STAKEHOLDERS
PRIVATE-PUBLIC COLLABORATION

13. 14
• Not the usual customer segment: adapt to serve a
newly digital customer
• Clear communication: Call center for beneficiaries,
website and chatbot
• Validation new clients: working together with
TELCOS-HASH#
• Adequate digital onboarding process for G2P
payments
INSTITUTIONAL ADAPTATION
AND FLEXIBILITY
PRIVATE-PUBLIC COLLABORATION

14. 15
From non-digital to digital users, ultimately enabling USER CHOICE
Task 1: Finding users in a non-digital ecosystem
• Multiple channels: mass media, social media, below the line
marketing, partnerships
Task 2: Minimizing risk over account creations
• Online validation with Registraduría (National ID Entity) and
Blacklists
• Online massive payments through connection with ACH
• Monitoring and control with risk team
BALANCING RISK AND INNOVATION
IN A RESPONSIBLE MANNER
PRIVATE-PUBLIC COLLABORATION

15. 16
The real challenge is creating new habits in people
• Switching from the regular money transfer to digital
bancarization and digital usage
• Whenever the user finds a complete solution in its account,
cashout drops to 38%
62% of the people used the money on their wallet
40% of the card payments were held online & in-apps
45% of the users did an additional cash-in after
payments
Opportunity to serve the G2P
beneficiaries
PRIVATE-PUBLIC COLLABORATION

16. 17
KEY LESSONS LEARNED
à Commitment and partnership with the private
sector.
à Co-creation of solutions.
COLLABORATION WITH
PRIVATE SECTOR
LEADERSHIP AND CLEAR
COMMUNICATION
FLEXIBILITY INTERMS
OF DELIVERY CHANNELS
AND OUTREACH
METHODS
CONSOLIDATED
REGISTRY
ENABLING REGULATORY
FRAMEWORK
à Effective cross-government collaboration.
à Assign roles and responsibilities.
à Virtual situation room.
à Cash, mobile wallets, accounts.
à SMS, word-of-mouth, partnership with local
governments, website and social networks.
à Key in having the right G2P scheme design.
à Regulation.
à Prone to banking digitally G2P beneficiaries.
à Treasury’s flexibility.

17. 18
NEXT STEPS
à Ingreso Solidario-Longer Term
à DPS starts opera6ng it July onwards.
à DNP , DPS andWB and BTCA
à Include lessons learned into CONPES.
à Extend interoperability
à Consumer choice for G2P beneficiaries
HACIENDA ENSURES LEGAL
FRAMEWORKTO DPS
DOCUMENTING
CASE STUDY
INTHE PIPELINE

18. RESPONSIBLE DIGITAL PAYMENTS
GUIDELINES 19
Treat Clients Fairly
Keep Client Funds Safe
Ensure ProductTransparency for Clients
Design for Client Needs and Capability
Support Client UsageThrough Interoperability
Take Responsibility for Providers of Client Services AcrossValue Chain
Protect Client Data
Provide Client Recourse

19. 20DISCUSSION
DR. RUTH
GOODWIN-GROEN
(Moderator)
Managing Director
BetterThan Cash Alliance
ANA MARIA
PRIETO ARIZA
Deputy Director
Financial Regulation Unit
Ministry of Finance,
Colombia
ANDRES
VAZQUEZ
CEO Nequi
By BANCOLOMBIA
HERNANDO
RUBIO
Co-Founder & CEO
Movii
BEATRIZ
MARULANDA
Senior Advisor
BetterThan Cash Alliance

20. @Betterthan_cash
Betterthancashalliance
Better–than–cash–alliance
www.BetterThanCash.org