LatAm List – In late December 2017, Decree 2443 came into force in Colombia, allowing banks and other financial institutions to invest directly into tech startups, specifically fintechs. However, these institutions can only invest in companies that do not have credit, banks accounts, or stocks in that institution.
The law states:
“credit establishments, societies of financials services and capitalization corporations, can own stocks or equity in national or international organizations whose sole social goal is to develop or apply innovation and technology to the financial sector.”
Experts in Colombia believe this measure will help accelerate digital transformation in Colombia. It is seen as a way for banks to improve innovation and for startups to gain access to much-needed capital. The pain point for both groups will likely be in culture; startups tend to move much faster than banks, so there may be some discord as the companies begin to work together.
Read more in LAVCA.