How an extra 2m Colombian bank accounts could impact your money transfer
Colombia is seeing some significant changes from a financial point of view.
The Central Bank of Colombia has cut interest rates by 50 basis points to just 2.75%, a record low according to Central Banking.
Lower interest rates make borrowing money cheaper, and as a result means people are more likely to borrow and spend. The idea is that a move like this will provide a welcome boost for Colombian economy.
In addition, the Exchange Rate has fallen by around 10% since April this year, meaning those beneficiaries you send money to in Colombia will receive 10% more Pesos than they did in earlier in the year.
Also, an extra 2m people have opened bank accounts in Colombia since March this year, according to marketing intelligence website. That’s more than the 1.4m who opened new accounts in the whole of 2019.
The question is, what could this rise mean for anyone sending money to Colombia and those beneficiaries who are receiving?
So, if you want to send money to Colombia, what are your options?
How to Send money to Colombia
Firstly, with Small World, the usual standards apply:
- Your first transfer is fee FREE online, no hidden charges
- You can deposit Colombian Pesos directly into a bank account in minutes
- You can send money for collection at over 2,587 locations across Colombia
Small World offers 4 ways to send money to Colombia
- Bank deposit: Send money direct to a bank account
- Airtime top-up: Transfer money to a mobile provider as airtime
- Mobile wallet: Deposit money in a mobile wallet
- Cash pick-up: Send money for cash pick-up
Which services require bank accounts?
Of these four services, the only one that requires a bank account is the bank deposit option. Airtime top-up and cash pick-up are available for unbanked customers. Mobile wallet is also available as an option without a bank account, but does require your recipient to have a smart phone.
Why send money via bank deposit? The increase in bank accounts is most likely going to draw attention to the bank deposit option, for any Small World customers who regularly send money to Colombia.
Is your beneficiary one of the 2m who has opened an account recently? While cash pick-up is often considered one of the easiest ways to transfer money to loved ones in Colombia, the opening up of new bank accounts gives you more options. Now you don’t have to limit yourself to cash pick-up, money can be transferred directly into your recipient’s account.
Money transfer to Colombia based bank accounts can be made via:
- Small World agents
- Online using the Small World website
- Downloading the Small World money transfer app to your phone
The app is secure and couldn’t be easier to use: Search ‘Small World’ on the App store and download it to your phone. One of our recent blogs gives you all the information you need.
Set up your account in 2 minutes then select ‘send money to Colombia’, enter the details of the person receiving the transfer and then use the App to monitor progress of your money transfer in real time.
Online transfers to a bank account can be advantageous for a number of reasons:
- Your recipient doesn’t have to visit an agent to access the money
- No need to rely on PINs or passwords
- It is much quicker: money can be transferred in an instant
- Your recipient can still withdraw the money as cash if they prefer, but they can also use it digitally
- The service is efficient, secure and available 24/7
Small World partnerships make money transfer easier, faster and cheaper
To make international money transfer even easier, Small World prides itself on establishing and maintaining good relationships with banks and other financial institutions across the world. These partnerships make it easier, cheaper and faster for our customers to transfer money across the globe.
They also allow us to offer excellent service and competitive rates.
Transfer money to Colombia with Bancolombia
One of Small World partner banks in Colombia is Bancolombia. The two have been in in partnership for over a decade. The bank employs more than 31,000 people worldwide and were listed as one of the World’s Best Employers by Forbes in 2018. Our recent blog tells you all you need to know about this partnership and why it is improving money transfer to Colombia.
You can also use your Small World account to transfer money to accounts with the following Colombian banks: Davivienda; Pagos Internacionales; BBVA; Banco de Bogota and Banco Agrario de Colombia.
The different ways to send money to Colombia