Regulatory changes in Colombia are bound to add fuel to the hot remittance business among local banks. That appears to be piquing the interest of players familiar with the securitization of e-money transfers in the cross-border market, an asset class that Brazilian banks have been tapping for some time. But in the case of Colombia, factors other than growing volumes will have to fall in place before banks venture into the dollar market.
Last month, regulators allowed Colombians residing abroad to open bank accounts inside the country. In addition, according to the local press, the government passed a tax reform that eliminated some charges on remittances, a change that has already been implemented by BanColombia, a leading institution. Combined, those changes are projected to speed up growth in an already burgeoning industry.