High interest rates and rising default risks are pushing Colombian financial institutions to adopt technological tools for more precise credit evaluations.
The financial system operates with the Banco de la República intervention rate at 12 percent. The DTF stands near 10.14 percent and the usury rate for consumer credit reaches 28.79 percent effective annual.
These conditions have reduced credit market dynamism and pressured financial entities' margins. Santiago Etchegoyen, CTO of uFlow, noted that the goal is no longer to expand credit massively.
"By replacing legacy processes with automation technology that requires no intervention from technical areas, risk teams can make and implement decisions agilely," Etchegoyen stated.
