Could 2m new Colombian bank accounts affect your money transfer choices?

Colombia is seeing some significant changes where its economy and financial behaviors are concerned.

Interest rates by 50 basis points to just 2.75% by The Central Bank of Colombia — a record low according to Central Banking.

Lower interest rates mean that borrowing money is cheaper, and people are more likely to borrow and then spend. The idea being that it will result in a welcome boost for Colombian economy.

Additionally, the Exchange Rate has fallen by around 10% since April this year so your beneficiary in Colombia will receive 10% more Pesos for your money than they did in earlier in the year.

According to marketing intelligence website Global, an extra 2m Colombian people have also opened bank accounts since March this year. That’s more than the 1.4m in the whole of 2019.

The question is: what does this mean for people sending money to Colombia and those who are receiving it?

If you want to send money to Colombia, what is your best option?

Small World partnerships make transferring money easier

In an effort to make international money transfer even easier, Small World prides itself on establishing and maintaining partnerships with banks and other financial institutions across the world. These relationships make it faster, easier and cheaper for our customers to transfer money securely across the globe.

They also enable us to offer competitive rates and excellent service.

Transferring money with Small World and Bancolombia

Bancolombia and Small World have been in partnership for over a decade. The bank was listed as one of the World’s Best Employers by Forbes in 2018 for the 31,000 people who work for it worldwide. Our recent blog post tells you all you need to know about why this partnership is improving money transfer to Colombia.

Your Small World account also allows you to transfer money to the following Colombian banks: Davivienda; Pagos Internacionales; BBVA; Banco de Bogota and Banco Agrario de Colombia.

Why choose bank deposit?

For Small World customers who regularly send money to Colombia, the increase in Colombian bank accounts is likely to draw attention to the bank deposit option.

Has your beneficiary opened an account recently?

While cash pick-up may have been a convenient way to transfer money to loved ones in Colombia to date, new bank accounts give you more options. Now money can be transferred directly into your recipient’s account, so you don’t have to limit yourself to cash pick-up.

Money transfer to Colombia-based bank accounts can be made a number of ways: in person, via Small World agents; by downloading the Small World money transfer app on Android or iOS to your phone; or online using the Small World website.

Our app is secure and couldn’t be easier to use. Simply search for ‘Small World’ in your App store and download it to your phone. Our recent blog post gives you all the information you need.

It takes 2 minutes to set up your account, then all you have to do is select ‘ send money to Colombia’ and enter the details of the person receiving the transfer. You can then monitor the progress of your money transfer in real time.

Transferring money to a bank account can be advantageous for a number of reasons:

1. You don't rely on PINs or passwords
2. The service is efficient and secure
3. The service is available 24/7
4. Money is transferred much in an instant
5. Money can still be withdrawn as cash, but can also be used digitally
6. Your recipient doesn’t have to visit an agent to access the money

How to Send money to Colombia

The usual Small World standards apply:

• Your first transfer is fee FREE online Colombian
• Pesos are deposited directly into a bank account in minutes
• Money can be collected at over 2,587 locations across Colombia

There are 4 ways to send money to Colombia using Small World:

1. Bank deposit: Send money direct to a bank account
2. Airtime top-up: Transfer money to a mobile provider as airtime
3. Mobile wallet: Deposit money in a mobile wallet
4. Cash pick-up: Send money for cash pick-up

Which services require bank accounts?

Of these four services, bank deposit is the only one that requires a bank account; unbanked customers can choose to receive their money via airtime top-up or cash pick-up. Mobile wallet is also available without a bank account, but does require your recipient to have a smart phone.

The different ways to send money to Colombia

Cash Pick-Up

Bank Deposit

Mobile Wallet

Airtime top-up