Labor informality and lack of credit history are driving the growth of unregulated lending, known as “gota a gota”, in Colombian households and businesses. An Anif and Colombia Fintech survey shows that only 35% of the adult population has access to formal credit, exposing many to exorbitant interest rates. This practice impacts the safety and well-being of those affected, particularly in vulnerable sectors.
In Colombia, exclusion from the formal financial system is fueling the use of “gota a gota”, an unregulated credit form that involves high interest rates and intimidating collection methods. A survey by the National Association of Financial Institutions (Anif) and Colombia Fintech shows that only 35% of the adult population accesses formal credit. This leaves many turning to informal options.
According to the data, 37.3% of households and 55% of companies use this financing, facing annual interest rates up to 382.2% for households and 666.5% for businesses. A Credicorp study indicates that only 18% of informal workers have achieved advanced banking inclusion, compared to 42% of those with formal employment. This gap deepens economic vulnerability, especially in sectors like domestic service, dominated by female heads of household, and independent workers.
Freddy Parada, manager of Financial Services at Compensar, states: “Sectors like domestic service, largely made up of female heads of household, and independent workers are fundamental pillars of the country's economy, but also among the most excluded from the financial system. With our solidarity credit, from Compensar we recognize their contribution, trust in their potential, and provide them with tools to grow”.
To counter this, Compensar offers products like the NanoYa Revolving Credit and Free Investment Credit, aimed at affiliates in categories A and B. Through an alliance with Entre Amigos, a fintech from the Fundación Grupo Social, they have impacted over 100 Colombians, mainly independents and domestic service workers, disbursing more than $650 million in loans. These initiatives aim to promote financial inclusion and reduce reliance on high-cost debt.