Attachment J.15 Assesment on status and challenges of financial inclusion in Colombia - Finance Papers Repository.pdf

ID Author(s) Date published

Document Name Type of Source Origin of Source Theme Summary (Key content, facts and figures) Relevant references or sources of data used Period of analysis Type of access Link to access

Financial Superintendence of Colombia(SFC) and Banca de las Oportunidades (BoD)

2021 Reporte de Inclusión Financiera 2020 Public Sector National Context of financial inclusion in Colombia: access and use data, achievements and challenges.

The report highlights the progress in financial inclusion figures in Colombia:

* As of 2020, 87.8% of the adult population had at least one financial product, a figure 5.3 percentage points higher than that of 2019 and exceeding the Government's goal for 2020. For its part, the use indicator it was 72.6% in 2020, 6.6 pp above that of 2019.

* This growth in both access and use was driven mainly by electronic deposits (17.0% to 31.9%) and savings accounts with simplified procedures (9.3% to 22.3%). These products became vehicles for the receipt of monetary transfers from the Government in the framework of the COVID-19 pandemic. In contrast, the number of adults with current credits decreased for all modalities.

* Although these achievements are significant, challenges still persist, such as closing the urban-rural gaps, age (young people and adults over 65 have greater limitations) and gender. Similarly, the regular use of these products by financial consumers should be encouraged, and financial infrastructures should be strengthened in search of greater interoperability and competition between providers.

* Although the number of transactions carried out through non-face-to-face channels had an increase of 66.3% in the last year, cash continues to be the main transactional medium for individuals and MSMEs, so the use of financial products. * On the other hand, 925,255 legal entities had a financial product at the end of 2020, 14,427 less than the data observed in the same period of 2019. This was equivalent to a fall of 1.5% in said period.

National Administrative Statistics Department (DANE), Ministry of Industry, Commerce and Tourism, SFC, Superintendency of the Solidarity Economy (SES), TransUnion and SEDPES (Companies Specialized in Electronic Payments and Deposits).

Population over 18 years of age

2020 Public Information https://bancadelasoportunidades.gov.co/sites/default/files/2021- 07/REPORTE_DE_INCLUSION_FINANCIERA_2020.pdf

Financial Superintendence of Colombia (SFC) and Banca de las Oportunidades (BoD)

2020 Reporte de Inclusión Financiera 2019 Public Sector National Context of financial inclusion in Colombia: access and use data, achievements and challenges.

The report highlights the progress in financial inclusion figures in Colombia:

* As of 2020, 87.8% of the adult population had at least one financial product, a figure 5.3 percentage points higher than that of 2019 and exceeding the Government's goal for 2020. For its part, the usage indicator it was 72.6% in 2020, 6.6 pp above that of 2019.

The report highlights the progress in financial inclusion figures in Colombia and the main challenges:

* As of 2019, 82.5% of the adult population had at least one financial product, with deposits and / or savings being the most representative, and 100% of the municipalities had at least one access point, where the correspondents have played a central role. (to separate it on another line)

* This year, four SEDPES (Specialized Companies in Electronic Payments and Deposits) and the first crowdfunding platform entered into operations, which added to the projects tested in the Arenera and the Innova SFC Hub, confirm how innovation is transforming the financial system .

* Among the challenges in financial inclusion, the need to improve the indicator of use of financial products, strengthen payment systems, close the gaps between urban and rural areas for certain population groups such as young people, women , migrants, and the informal population with vulnerable sources of income.

National Administrative Statistics Department (DANE), Ministry of Industry, Commerce and Tourism, SFC, Superintendency of the Solidarity Economy (SES), TransUnion and SEDPES (Companies Specialized in Electronic Payments and Deposits).

Population over 18 years of age

2019 Public Information https://bancadelasoportunidades.gov.co/sites/default/files/2020- 07/Informe_RIF_2019.pdf

3 Banca de las Oportunidades (BdO) 2020 Reporte Trimestral de Inclusión Financiera - Tercer trimestre de 2020

Public Sector National Updated data on financial inclusion in Colombia.

The report presents an update of the financial inclusion figures as of September 2020:

* In September 2020, the access indicator reached 87.1%, exceeding the goal established in the NDP for the 2018-2022 period (85%). For its part, the usage indicator rose from 71.6% to 73% between June and September 2020, which obtained the highest annual variation in March 2020 compared to June 2020, since in these two quarters the usage indicator grew 4.8 pp

* The access indicator was higher in cities and agglomerations (95.5%), followed by intermediate municipalities (74.9%) and rural municipalities (68.4% rural and 57.8% dispersed rural).

* By age, people between 41 and 65 years old are the ones who most use and access the financial system, however, the highest growth rate of the use indicator between December 2019 and September 2020 occurred in the population between 18 and 25 years of age (9.5 pp).

* By sex, men are the ones who use and access the financial system the most, using, for the most part, savings accounts and electronic deposits, which were the ones that had the highest growth in the period analyzed.

* Additionally, of the 923,186 firms that have at least one financial product, 67% of them have it active, where the savings account and commercial credit was the credit product with the highest penetration.

TransUnion and National Planning Department

(DNP).

July-Spetember 2020 Public Information https://bancadelasoportunidades.gov.co/es/publicaciones/reportes-trimestrales

Consejo Nacional de Política Económica y Social (CONPES)

Política Nacional de Inclusión y Educación Económica y Financiera

Public Sector National Public policy on inclusion and economic and financial education

The document presents government policies and measures to promote inclusion and economic and financial education for rural people, MSMEs and some target population groups such as women and youth. In the Background section, it presents the progress in financial inclusion thanks to the creation of institutions and initiatives such as the Banca de las Oportunidades, the Capital Market Mission, the distribution of Solidarity Income and the objectives of the National Development Plan. In the Assessment it mentions the main challenges in this matter, emphasizing that there are still incomplete credit markets for MSMEs and rural residents, and that there is asymmetric information between banks and potential users due in part to the impossibility of making transactions visible. of the latter. In the same way, it underlines that there is a low use of transfers and digital payments by individuals and companies, that there is still room to reduce the costs of the low-value payment system and that potential clients do not have the education economic and financial to make the best decisions or trust the financial sector. Based on the above, 8 lines of action are defined whose implementation will take place between 2020 and 2025: 1. Promotion of access for people and companies to more and better financial products and services; 2. Relevance of financial products and services aimed at the vulnerable population; 3. Quality and relevance of the formal economic and financial education program; 4. Quality and relevance of non-formal economic and financial education programs; 5. Greater clarity and confidence about Financial products and services; 6. Availability of the digital authentication service for services with the State, greater interoperability and competition in the information market for financial consumers and the low-value payment system; 7. Institutional articulation for better governance; and 8. Measurement of financial inclusion.

Banca de las Oportunidades (BdO), Payment Systems of the World Bank survey, Micro-businesses Survey , GEIH and the Financial Burden and Financial Education of Households Survey- DANE and Banco de la República, Sustainable Management- Finagro, among others.

The document makes an assessment of the evolution of financial inclusion indicators in the last decade, with an emphasis on 2019 and 2020. The proposed policy measures will be implemented between 2020 and 2025.

Public Information https://colaboracion.dnp.gov.co/CDT/Conpes/Econ%C3%B3micos/4005.pdf

Consejo Nacional de Política Económica y Social (CONPES)

Política para la reactivación, la repotenciación y el crecimiento sostenible e incluyente: Nuevo compromiso por el futuro de Colombia.

Public Sector National Policy for post-Covid economic reactivation

The document presents the measures implemented to contain the pandemic and the New Commitment for the Future of Colombia reactivation plan, which has resources for investments of more than 135 billion pesos. In the Background, it sets out the measures implemented since the beginning of the pandemic, the objectives of which were (i) to reduce the impact of COVID-19 on the health of the population; (ii) protect the income and well-being of households; (iii) protect the productive apparatus from the effects of the pandemic, and (iv) support the country's public finances; all this in a framework of acceleration of the digital development of the country. The Assessment summarizes the consequences of the pandemic, highlighting the deterioration in the country's finances and in the labor market, the low access to financing for MSMEs, the necessary review and adjustment of the portfolio of products and services of Finagro, in order to propose financial products under special conditions for peasant, family and community agriculture, emerging small and medium producers, the low availability of social programs for the migrant population of Venezuela and the increased risk of a higher incidence of poverty and vulnerability for rural residents. Based on the above, the reactivation policy is defined and the investments that the national government will make to generate employment, promote clean and sustainable growth, reduce poverty, strengthen the productive apparatus, digitization and internationalization, among others, are highlighted.

DNP, Ministries, National Institute of Health (INS), Department for Social Prosperity, DANE, Organization for Economic Cooperation and Development (OECD) and the National Family Welfare System

(SNBF).

The document makes a sectoral analysis of the measures implemented since the start of COVID-19 in March 2020. The action plan will be executed between 2021 and 2026.

Public Information https://colaboracion.dnp.gov.co/CDT/Conpes/Econ%C3%B3micos/4023.pdf

Consejo Nacional de Política Económica y Social (CONPES)

2021 Política Nacional de Emprendimiento Public Sector National

Public policy to strengthen skills, financing mechanisms and technological development of entrepreneurship in Colombia.

The document describes the entrepreneurial ecosystem of Colombia, its barriers and challenges, as well as the public policies for its development. In the Background, it mentions the promotion policies for MSMEs, those for access to financing, and those for the generation of income for the poor population and victims of the conflict. The Assessment highlights the main problems in this field, such as the low number of medium-sized productive enterprises, the low proportion of the population classified in the middle class, the deficiency in skills and competencies, the inadequate access to financing mechanisms, the weak networks marketing of ventures, limitations in terms of innovation and technological development, and weak institutions. Based on the foregoing, a policy plan of 12 lines of action is drawn up to be implemented between 2021 and 2025 and which include: 1. Addressing the needs of soft skills and promoting an entrepreneurial culture; 2. Strengthen the technical knowledge and hard skills of the entrepreneurial community; 3.

Improve access and generate financing alternatives in the early stages of the venture; 4. Sophistication and increase the financing alternatives in stages of initial and accelerated growth of the ventures; 5. Promote the creation of support networks among entrepreneurs and strengthen synergies between the networks of the entrepreneurship ecosystem; 6.

Strengthen the strategies of associativity, distribution and commercialization of the enterprises to promote their sustainability and growth; 7. Train and promote the use of technological tools, in accordance with the requirements and conditions of the undertakings; 8. Facilitate technology exchange and innovation in entrepreneurship; 9. Promote a comprehensive and articulated care scheme for the development of enterprises; 10. Generate characterization, targeting and profiling strategies for timely assistance in supporting entrepreneurship; 11. Generate mechanisms for monitoring beneficiaries, evaluating interventions and general information on the entrepreneurship ecosystem, for evidence-based decision-making; and 12. Generate an institutional framework that promotes the growth of enterprises, as well as rapid and low-cost experimentation.

Colombian Chamber of Electronic Commerce, Bogotá Chamber of Commerce, World Bank, IDB, Private Competitiveness Council, DANE, Administrative Department for Social Prosperity, DNP, iNNpulsa, Emprender Fund, Ministry of Commerce, Finagro, among others.

The CONPES makes an analysis of the political background since 2000 and for the assessment, it looks at the period of 2016-2020.

The action plan will be executed between 2021 and 2025.

Public Information https://colaboracion.dnp.gov.co/CDT/Conpes/Econ%C3%B3micos/4011.pdf

7 Asobancaria 2020

Banca & Economía - Edición 1261:

Inclusión financiera en zonas rurales:

desafíos, oportunidades y buenas prácticas

Private sector National

Context of financial inclusion in the Colombian rural sector and comparison with some successful international experiences

The document makes an assessment of financial inclusion and economic education in the rural sector, showing the access indicator in rural areas (67.8%) as the main data. Subsequently, it describes the contribution of institutions such as Finagro and of banking and financial entities through special credit, training and support programs. After this, it defines the main barriers to access to financing in the rural sector, grouped into: (a) Demand: low frequency of banking activities, impossibility of making a consistent profile of the rural client and their needs, low level of financial education.

(b) Supply: low financial coverage in rural areas. (c) Externalities: terrible internet connection coverage, high transaction costs, lack of physical and technological infrastructure. As a proposal, the document presents the experiences of Nigeria, Chile, Costa Rica and Thailand, who have made progress in rural financial inclusion through public policy initiatives and coordination of strategies with financial institutions. In addition, it highlights the importance of having data disaggregated by sex, age and rural population, in order to monitor the impact of the measures. Finally, it lists three key strategies for the development of the rural sector: (i) promotion of electronic deposits, (ii) strengthening of marketing strategies, mainly towards rural youth, and (iii) Agrotech, which consists of the creation of investment funds that favor the implementation of digital tools.

2017 Global Findex Database, the 2019 BdO and SFC Financial Inclusion Report, the 2019 Finagro Sustainable Management Report and the findings of Reyes, J.

Torcat, M. Córdoba, N.

Wolfe, T. ( 2020).

Financial inclusion in the rural sector in Colombia, a comparison of internationally successful practices. Meassurent Matters & Asobancaria.

Analyzes financial inclusion indicators for 2014 and for the period 2017-2020.

Public Information https://www.asobancaria.com/wp-content/uploads/2020/11/1261VF-1.pdf

8 Andrea Otero Cortés: Banco de la República 2019 El mercado laboral rural en Colombia, 2010-2019

Public Sector National Analysis of the Colombian rural labor market

The Colombian rural labor market differs significantly from the urban one, not only in the composition of employment, but also in the problems it faces. In this work, three matters were identified that deserve priority attention: (i) female labor participation is very low compared to that of men in rural areas and that of women located in the headwaters, and the female unemployment rate is higher in rural areas than in headwaters; (ii) rural labor informality rates are significantly higher than urban ones and rural pension coverage is precarious (less than 15% for the entire period analyzed); and (iii) child labor is still a common practice that, although it has decreased over time, affects the accumulation of human capital of children and adolescents in rural areas.

GEIH: DANE, Banco de la República, Fedesarrollo and DNP.

Characterization of the Colombian rural labor market from 2010 to

Public Information Otero-Cortés, A. (2019). El mercado laboral rural en Colombia, 2010-2019. 79. Documento de Trabajo sobre Economía Regional y Urbana, 281. Banco de la República. Bogotá

9 USAID 2019

Servicios Financieros Digitales en Zonas Rurales de Colombia:

Caracterización de la oferta, la demanda y los canales disponibles.

International Cooperation International

Determinant factors of access to the financial system in Colombia and recommendations on digitization, financial education and coverage.

This document presents a summary of the three demand studies that USAID financed between 2016 and 2018, with the purpose of knowing the characteristics, conditions and financial habits of the inhabitants of rural areas of Colombia. The first is the “Rural Financial Inclusion Survey (south of Tolima)”, which shows that 50% of people do not save and, of those who do, only 6.2% resort to formal sources, in addition to This, 60% of the people who have accessed a formal loan and have a high school education level and a complete technologist, are mostly male, work or are retired. People move with short and medium-term goals, and that is why credit is often closely related to the needs to develop productive activities. The loan is also conceived as the possibility of developing a business idea that results in the consolidation of important life projects in personal and family terms. A greater detail of these results can be seen in ID 10 of this matrix.

The second is called the "Baseline Evaluation for the Rural Finance Initiative" applied by USAID, the institution that selected the EVAL (Evaluation and Analysis for Learning) project implemented by MSI (Management System International), which concludes, among other things , that credit is related to internet access and savings accounts with the cost of traveling to the bank branch, likewise, regarding the reasons why people did not have a savings account with a financial institution is due to not having money to save, the requirements for opening it, the preference for other forms of savings (such as saving at home or in a chain, or trading with animals), the distance from the financial institution and the minimum balance that it is accepted to open a savings account, finally, the study showed that the main destinations of credit for rural households is to invest in a business, buy assets, buy a pr opity, improving housing and paying debts, although others also appear such as the future and old age, attending to emergencies or for health reasons. The third is the study "Low-cost online transactions" carried out by Yanhaas and USAID, which concludes that the more costs and paperwork are reduced to open a financial product, the greater the financial inclusion. In addition to the above, the three studies highlight the importance of developing and promoting digital transactional channels so that they are the most efficient, the most used and the least expensive; the need to design products and services according to the sociodemographic characteristics of the people and their needs; and the relevance of knowing the behaviors and habits of users in handling money and with digital transactional channels.

Banco de la República de Colombia, ACH Colombia, Universidad del Tolima, Management Systems International (MSI - EVAL).

The “Rural Financial Inclusion Survey (south of Tolima)” was carried out in 2016, the “Baseline Assessment for the Rural Finance Initiative” in 2017 and c) the “Low-cost online transactions” study in 2018.

Public Information USAID (2019). Servicios Financieros Digitales en Zonas Rurales de Colombia:

Caracterización de la oferta, la demanda y los canales disponibles

Carlos Gustavo Cano, Paola Cuadros y Dairo Estrada: Banco de la República and USAID.

Inclusión Financiera Rural: El caso del sur del Tolima

Public Sector National Study of the demand for financial inclusion in three municipalities in southern Tolima

The document analyzes the socioeconomic context and the current state of financial inclusion in three municipalities in southern Tolima, where associative strengthening programs have been implemented. Among the main findings of the survey applied to this population, it is found that there is a gender gap in terms of access and use of financial products favoring men. Similarly, it is highlighted that, although people have knowledge of the operation and / or products offered in the financial system, there are limitations in access due to monetary costs and the time required to access these products. On the other hand, they point out that the main obstacle to formal saving is that there are no nearby banks, low profitability, high cost and insufficient resources to save. The policy recommendations mention the need to promote investment projects in the countryside through the Banco Agrario de Colombia, targeting sectors traditionally neglected by traditional banks such as small-scale farmers, women, small merchants, indigenous people, among others; and revising FINAGRO's rediscount policy to include operations with non-supervised entities, such as non-governmental organizations (NGOs), associations and cooperatives with a presence in rural areas.

Rural Financial Inclusion Survey (EIFR), BdO, DANE, SFC, University of Ibagué and DNP.

2016.

However, to evaluate the evolution of rural financial inclusion in Tolima, data comparisons are made between 2005 and 2015.

Public Information https://repositorio.banrep.gov.co/bitstream/handle/20.500.12134/9330/LBR_2 017-5.pdf?sequence=1&isAllowed=y

11 Banca de las Oportunidades (BdO) 2019 Financiamiento de las MiPymes en Colombia

Public Sector National Characteristics of MSMEs in Colombia and their financing demands

The document presents the main findings of demand studies on the financing of MSMEs in Colombia. For this, the results of the Financial Inclusion Demand Survey 2017 (EDIF) from Banca de las Oportunidades and the Financial Superintendence of Colombia,Anif's the Great SME Survey (GEP) of the second semester of 2018 and the Great Microenterprise Survey 2018 were analyzed (GEM) . In general, the three studies highlight that the main financing challenges in the MSMEs segment are: i) low access to formal financing; ii) high self-exclusion from formal credit; iii) the high proportion of formal credits destined to provide liquidity and not to investment; iv) low access to alternative sources of financing such as leasing and factoring; v) the need to promote other sources of financing such as venture capital and factoring; and vii) the need for greater financial education.

DANE, Demand for Financial Inclusion Survey(EDIF) - Banca de las Oportunidades and the Financial Superintendency of Colombia of 2017, the Great SME Survey (GEP)

- Anif of the second semester of 2018, the Great Microenterprise Survey - Anif of 2018 and TransUnion.

Results of the surveys carried out in 2017 and 2018, but figures take into account the last decade.

Public Information https://bancadelasoportunidades.gov.co/sites/default/files/2019- 02/Financiamiento%20MiPymes.Vf_.pdf

12 Finagro 2020 Informe de Gestión Sostenible Public Sector National Figures and achievements of FINAGRO's management in 2020

The document presents, in first place, the national and international macroeconomic context together with some figures from Finagro and the panorama of the Colombian agricultural sector. Subsequently, figures related to access to financial services and support instruments in 2020 are shown, such as credit performance and portfolio under ordinary conditions, special credit lines, guarantees from the Agricultural Guarantee Fund, and incentives for agricultural insurance. In the same way, it is highlighted how Finagro worked with some entities in the sector to promote a culture of risk management and design instruments to mitigate the risks associated with agricultural activity in Colombia, and how the rural Capitalization Incentive (ICR) has been.

FINAGRO 2019-2020 Public Information https://www.finagro.com.co/sites/default/files/igs_2020_finagro.pdf

Dairo Estrada and Andrea Hernández Rubio:

Colombian Association of Microfinance Institutions (Asomicrofinanzas) and Banco de la República.

Situación actual e impacto del microcrédito en Colombia

Public and Private Sector National Current status of microcredit in Colombia: entities, numbers, credit risk and impact.

This book describes the microcredit market in Colombia, the offering entities and the types of debtors. Using disaggregated data, it shows which are the determinants of delinquency, among which is gender, age, socioeconomic status, location of the client, educational level and marital status. On the other hand, it evaluates the impact of microcredit as an instrument of social inclusion and a development tool. For this, he quantifies the change in the income of debtors who request a second microcredit and compares it with respect to the poverty and vulnerability lines. In this regard, the authors conclude that microcredit reduces the incidence of poverty among its debtors, but not their situation of vulnerability.

BdO, SFC, World Bank, Association of Fintech companies of Colombia, Inter-American Development Bank (IDB), Ministry of Agriculture, Global Findex and GEIH:

DANE.

2010-2017 Public Information Estrada, D. & Hernández, A. (2019). Situación actual e impacto del microcrédito en Colombia. Asociación Colombiana de Instituciones Microfinancieras (Asomicrofinanzas) y Banco de la República.

14 Colombian Government 2020 Welcome, Integrate, and Grow.

Colombia's policies regarding migration from Venezuela

Public Sector National

Measures implemented by the Colombian government to attend to the migration of Venezuelans and / or Colombians returned to Colombia.

The document presents figures on the migration of Venezuelans or returned Colombians and summarizes the measures implemented by the Colombian government. In the first place, the measures to guarantee the basic rights of this population (health, education, legalization of their status) and, secondly, the policies to promote their integration into the Colombian market and society are exposed. Despite the efforts, the document highlights 5 areas in which additional efforts are required: i) increase regulation rates, ii) reduce xenophobia of migrants and discriminatory manifestations, iii) coordinate plans to reduce poverty, iv ) promote economic inclusion and income generation strategies, and v) improve security for immigrants. Subsection iv) is aimed at increasing access to financial products and services and financial education through the PEP. In this way, if the barriers to the economic inclusion of Venezuelans are reduced, their average monthly income would increase from USD 131 to USD 186, which would imply an increase in GDP of around 0.3% (calculated in 2018). Finally, the importance of national and international financing is highlighted in order to generate social, economic and labor inclusion, as well as improve access to educational and health services.

World Bank, Ministries, United Nations Organization, DANE, DNP, Migración Colombia, International Organization for Migration (IOM), National Unit for Disaster Risk Management, Administrative Registry of Venezuelan Migrants (RAMV) and the ICBF.

From 2019 Public Information Gobierno de Colombia. (2020). Welcome, Integrate, and Grow. Colombia's policies regarding migration from Venezuela. (Primera edición). La Imprenta Editores.

Simón Mejía and Paula Lozano: center for International Private Enterprise (CIPE) and Jaime Arteaga y Asociados (JA&A).

Observatorio de Inversión Privada en

PDET

Private sector National

Characterization of business networks in PDET municipalities and identification of external actors that mobilize resources for these territories.

The document analyzes the results of the Private Investment Observatory's 17 indicators regarding the business networks in PDET municipalities . The results show the heterogeneity of the PDET regions, especially considering their individual characteristics and also considering that the implementation of the Peace Agreement commitments has been uneven. In this sense, significant differences stand out between the number of companies created and their duration over time, which affects the productive development of these territories. On the other hand, the negative effects of Covid-19 are verified, although with different levels of affectation by region. Given the above, it is recommended to pay attention to the gaps identified in labor formality, connectivity and access to credit to achieve greater socioeconomic development.

28 chambers of commerce with PDET municipalities under their jurisdiction, Confecámaras, DANE and SENA.

The 17 indicators updated to 2020 are presented and these indicators are compared with respect to 2018 and 2019.

Public Information Lozano, P. & Mejía, S. (2020). Observatorio de Inversión Privada en PDET. Centro Internacional para la Empresa Privada. Jaime Arteaga y Asociados.

Santiago Espitia Pinzón, Deiby Alejandro Rojas Cano, Laura Ocampo Zapata and Sara Patricia Castro Duque: Bancolombia.

¿Qué repercusiones ha tenido la pandemia en la brecha de género laboral en Colombia?

Private sector National Gender gap in the Colombian labor market

The document presents the impact of Covid-19 on the gender gap in the Colombian labor market, as well as a series of recommendations to mitigate it. One of the main findings is how Covid-19 came in a context in which female employment was already on a path of slight deterioration in terms of employment (it went from 59% on average in 2015 to 56.6% in 2019), unemployment gap (the difference in the unemployment rate increased from 5.3 to 8.7 percentage points in the August-October 2020 quarter compared to a year ago). With the arrival of the pandemic, the employment of women fell more than that of men (the level of employment by gender fell in April 2020, for women, to approximately 68, while that of men stood at 73) ; and in the subsequent recovery process, a bias towards men was evidenced (reaching an employment level of 95.9 in October 2020, compared to the 86.4 level for women). Along the same lines, the sectors most affected by the pandemic are those where women have a greater participation, such as (i) artistic activities, entertainment, recreation and other service activities; (ii) public administration and defense, education and health; and

(iii) professional, scientific, technical, and service activities, which contracted 17.1%, 15.7%, and 18.1% between January and October 2020.

GEIH: DANE. 2013-2020 Public Information https://www.grupobancolombia.com/wps/portal/empresas/capital-inteligente/actualidad-economica-sectorial/impacto-covid-19-brecha-genero-laboral-colombia

17 Javier Ignacio Raventós Nuñez 2020 Empresas Fintech en Colombia: Sus retos y logros

Private sector National Current status and challenges of Fintech companies in Colombia.

The document presents updated data on Fintech at the national and international level, their impact on financial inclusion and the financial sector, and the challenges faced by the Fintech ecosystem in the country. Regarding the main results, it stands out that they are innovative products aimed at finding new ways to reach people who did not have access to these services, where insurers, banks, cooperatives, financing companies, Sedpes, fintechs, networks, regulators and supervisors they have found a space to collaborate. The Fintech ecosystem in the country is led by actors such as Finaktiva, Mesfix, Sempli, Gulungo, a2censo, Pimes, Bankamoda, who have changed the way of doing business and accessing financial services in the country, with a special focus on entrepreneurs and microentrepreneurs in the country.

On the other hand, it is emphasized that Fintech have played an important role during the Covid-19 pandemic, they have already allied with the Government to make subsidy payments in the fastest, safest and most controlled way and have helped companies by buying their invoices so that they have liquidity, with payment platforms and providing credits quickly.

Data from financial entities, software providers and risk centers, among others, that make up the Colombian Fintech ecosystem

2020 Public Information https://issuu.com/jmrcomunicaciones/docs/libro_fintech_sueltas_jul27

Miquel Jordana and Manuela Giraldo:

Fundación Capital

¿Qué tienen para ofrecer las soluciones digitales a las MYPEs en Colombia?

Private sector National Digital Project (DigitALL) for Micro and Small Businesses

The document describes the DigitAll project, which has the objective to leverage resources from actors that have the potential to add value to MSEs and the communities they serve, thus contributing to their strengthening and digitization.

The project seeks to address the need to integrate digital tools in the MSMEs, as well as their market needs, which have been affected by the pandemic. Its offer includes a) improving the knowledge and business management skills of microentrepreneurs, b) accompanying the adoption of digital tools and c) facilitating greater and better access to digital financial services. The foregoing is based on two premises (1) not to work alone: it is necessary to articulate with the entrepreneurs themselves and with the various actors of the ecosystem to support MSEs; and (2) starting from what already exists: not adding a new application or tool to the already rich map of existing digital solutions, but looking for a way to bring this offer closer to MSEs, connect them to their needs and accompany them in their experience and digital transformation.

Center for Inclusive Growth de MasterCard

2020 Public Information https://fundacapital.medium.com/what-can-digital-solutions-offer-mses-in-colombia-41fb28dce3a2

Ministry of Finance and Public Credit, Normative Projection Unit and Financial Regulation Studies and Financial Superintendence of Colombia.

Política Pública para un Mayor Desarrollo del Sistema Financiero

Public Sector National

National government policy document for the development of the financial system for the period 2020 - 2025.

The document presents the Government's policy to have a more dynamic, competitive, resilient and inclusive financial system that responds in an agile way to the needs of savers and investors, to technological changes and to the permanent innovation of financial products and services. The strategic objectives and the main measures proposed include: i) promoting the efficient transformation of savings and investment by creating a solid financial architecture, deepening the capital market and guaranteeing completeness of the markets; ii) facilitate and promote digitization in financial inclusion; iii) consolidate the security and stability of the financial system through convergence to international standards, the new approach to risk and the strengthening of corporate governance and environmental and social criteria; iv) promote universal access to the electronic, inclusive, efficient and secure payment system; and v) strengthen the institutional framework in support of the Financial Regulation Unit (URF), the Financial Superintendence of Colombia and the Self-Regulation of the Securities Market.

Mission of Experts in the Capital Market, Banco de la República, Global Microscope The Economist and Self-regulator of the Stock Market (AMV)

Figures from 2017 to 2019. Policy for the period 2020-2025.

Public Information https://www.minhacienda.gov.co/webcenter/ShowProperty?nodeId=%2FCon exionContent%2FWCC_CLUSTER- 148012%2F%2FidcPrimaryFile&revision=latestreleased

Mauricio Rincon, Julian Huerfano, Liliana Heredia, César Ángel, Simon Mac Arthur, Karl Flowers, Karen Aparicio: USAID

Nature Tourism Market Analysis Final Report

Public Sector International Nature tourism market in PDET regions irst market analysis of nature tourism in 29 municipalities prioritized by USAID (mainly PDET) that have the potential to become NT (natural tourism) products in the short term. Among the topics addressed by the research team are:

1) The regulatory and legal framework of NTs, and the impact and consequences of the COVID-19 pandemic in the NTs of Colombia.

2) Strategies implemented to support NT, expand licit economies and livelihood opportunities in remote rural areas.

3) The dynamics of supply and demand for NTs and the factors that allow or hinder their development in Colombia.

The main findings highlight that the reactivation of tourism after the COVID-19 pandemic presents great opportunities, but destinations and companies must manage the expectations of their demand and overcome various obstacles to improve their offer due to the importance of this sector. Among the aforementioned, it is emphasized that the necessary investment is insufficient and there are no specific incentives for investors; and that the access roads to natural or potentially tourist areas are nil.

Colombian Association of Responsible Tourism, the Ministry of Commerce, Industry and Tourism, the Ministry of the Environment and Sustainable Development, Colombia Productiva, National Natural Parks system, the National Training Service, Procolombia and the Territorial Renewal Agency.

2013 -2021. Public Information https://pdf.usaid.gov/pdf_docs/PA00XJMN.pdf

21 Deloitte 2020 COVID-19's implications for Economic Growth and Equity in developing countries

Private sector International Impact of the COVID-19 pandemic in Colombia and analysis of strategies for recovery.

The document explores the economic and social impacts of COVID-19 in Colombia, and shows effective strategies for the development of the digital economy, the economic inclusion of migrants and rural sectors. Regarding the impact, the collapse of the health system, the weakness of the informal economy, the slow governmental process in the country and the differential effects on populations such as low-income households, MSMEs and the marginalized population stand out.

Deloitte March-December 2020. Public Information

Banca de las Oportunidades (BdO), Financial Superintendence of Colombia, Development Bank of Latin America- CAF

Estudio de Demanda de Inclusión Financiera

Public Sector National Results of the 2017 Financial Inclusion Demand Study.

This document identifies the main gaps and barriers that exist in terms of access to financial services through the perception of individuals and micro-enterprises. Initially, inclusion is addressed through the dimensions of access and use for individuals and micro-enterprises. Subsequently, an analysis is made of the quality attributes of banks and cooperatives and their ability to solve doubts and inconveniences of the population. After this, an analysis is carried out that describes the relationship of access to financial products and the ability of individuals to react to negative shocks to their finances. Finally, the document shows some findings in terms of financial infrastructure, digital media and more frequent payments by individuals and micro-businesses.

The study uses its own data based on samplings that were carried out in the country for individuals and entrepreneurs.

October- November 2017. Public Information https://www.superfinanciera.gov.co/inicio/informes-y-cifras/informes/inclusion-financiera/estudio-de-demanda/segunda-toma-10098213

23 José Leivobich: USAID 2013 Propuesta de nuevo esquema para categorizar a los tipos de productores del sector agropecuario

International Cooperation International Categorization of agricultural producers

The author proposes to modify the categorization scheme of types of agricultural producer used by FINAGRO and the Ministry of Agriculture and Rural Development to determine the credit conditions and the allocation of subsidies. The proposed change seeks to reduce type I and II errors, better targeting the allocation of subsidies. Using information from the cadastre and the average land values, the author classifies agricultural producers according to their Family Agricultural Units (UAF) and compares them with the current classification of the National Agricultural Credit System. The results indicate that, in the case of small producers, there are a good number of departments in which type I error (inclusion) is generated, and in a few cases type II error (exclusion). Something similar happens with medium producers.

Given the above, Leivobich proposes to change the classification limits of producers based on their assets. In the case of the small producer, it is proposed to reduce the limit value from 145 smlv to 90 smlv, and for the medium one, to reduce it from 5,000 smlv to 1,000 smlv.

Great Atlas of Rural Property of the IGAC-U.

de los Andes (2012), Semillero Rural¨ of the United Nations (2013) and Cadastral Appraisal of the Agustín Codazzi Geographical Institute (2009)

2013 Public Information

24 Marulanda Consultores: USAID 2013

Reforma al sistema de financiación agropecuario: Propuestas para fomentar el acceso al financiamiento de pequeños productores agropecuarios

International Cooperation International National Agricultural Credit System

The document analyzes the financing conditions of the agricultural sector in Colombia, emphasizing the treatment of small producers within the National Agricultural Credit System. The methodology used focuses on the origination processes and the costs of financial intermediaries to serve the rural population. Thus, it identifies the limit to the interest rates of the small producer as one of the greatest problems to promote financial inclusion in the rural sector, given that operating costs are high. This is due to 1. Higher operating costs due to the greater dispersion of clients and the longer time required, which leads to lower productivity of the advisors. 2. The greatest risk of agricultural credit. Additionally, agricultural loans tend to be low in amount, so fixed costs imply proportionally higher operating costs. Among the recommendations of the study are:

1. Simplify processes: eliminate the individual rediscount for each operation and enable the modality of lines of credit backed by endorsed promissory notes.

2. Incentivize the offer: structure an incentive that reduces the cost of credit or through improvements in risk analysis methodologies.

3. Diversify the access of financial intermediaries to Finagro: broadly define the “specialized evaluation methodologies” that are the requirement established in the standard for an entity to be able to use the agricultural microcredit line and freely set the interest rate to the final client.

Interviews with microfinance institutions (MFIs): Bancamía (Bank), FMM Popayán (NGO), Contact (NGO), and Comultrasan (Cooperativa de Ahorro y Crédito).

• Banks: Banco Agrario de Colombia (BAC), Banco de Bogotá, Bancolombia, BBVA, and Davivienda.

2013 Public Information

25 Ministry of Mines and Energy 2021 Acciones para el fortalecimiento del sector minero

Public Sector National Inclusion strategy of the mining sector from the Ministry of Mines and Energy

The document summarizes the financial inclusion plan of the Ministry of Mines and Energy. Its strategy has 3 pillars: 1.

Bancarization: Facilitate access to products. 2. Financing: Leverage of projects through investment. 3. Confidence:

Lower entry barriers to the financial sector. The document identifies challenges from 1. Mining sector: Closing knowledge gaps as a fundamental part of entering financing. 2. Financial institutions: reduce barriers related to the lack of knowledge of the mining sector and increase the supply of products for this sector. 3. From the institutions of the mining sector: Manage preferential resources for the sector and promote access and transfer of information for consultation by financial entities. Subsequently, it gives data on evolution and expectations for 2021.

Sendary sources Proposal for 2020-2021 Public Information Acciones para el fortalecimiento del sector minero

Nicolás De Roux, Margarita Gáfaro, Moisés Mahecha, Guillermo Otero and Andrea Parejo:

Uniandes

Información Crediticia para la Formulación de Política Pública: El Caso del Banco Agrario y la Sustitución de Cultivos de Uso Ilícito

Academia National Financial indicators of viable productive activities for substitution

The policy of substitution of crops for illicit use involves choosing, for a given place, a few crops as substitute alternatives. This choice must be made with profitability indicators that are generally not available due to lack of information. This article proposes to use information from the databases of the Banco Agrario de Colombia to guide this decision. In particular, it shows how the bank's loan and loan delinquency information can be used to construct profitability indicators for crops in municipalities with coca crops. These indicators are positively correlated with measures of income per hectare at the crop-municipality level constructed with the National Agricultural Census and the Municipal Agricultural Evaluations. Finally, the two crops with the best performance according to these indicators are presented for each municipality, these crops could be viable substitution alternatives.

National Agricultural Census (CNA), Municipal Agricultural Assessments (EVA), Rural Agricultural Planning Unit (UPRA) and DNP

2013 - 2017 Public Information https://repositorio.uniandes.edu.co/bitstream/handle/1992/41095/dcede2019- 31.pdf?sequence=1&isAllowed=y

27 Development Bank of Latin America- CAF 2021 Brechas de género en las encuestas de capacidades financieras de CAF: Brasil, Colombia, Ecuador y Perú

Multilateral International Gender gaps in financial capabilities.

This document presents the results of the CAF Financial Capabilities Survey for Brazil, Colombia, Ecuador and Peru.

The results focus on the gender gaps identified with financial planning, inclusion, resilience to financial shocks, financial education and the use of technology and digital media, oriented to Brazil. In all the competencies analyzed, men register a higher score, with Colombia being the country that exhibits the largest gaps.

CAF Financial Capabilities Survey

The surveys in Colombia and Peru were implemented in 2019, while in Brazil and Ecuador they were implemented in 2020.

Public Information https://scioteca.caf.com/handle/123456789/1700

28 Asobancaria 2020 Inclusión financiera en el sector rural en Colombia, una comparación de prácticas de éxito internacional

Private sector National

Financial inclusion context in the Colombian rural sector and comparison with some cases of international good practices.

This document is a comparative study on financial inclusion in Colombia and the countries of Chile, Costa Rica, Peru, Nigeria and Thailand. The study begins with an analysis of the financial inclusion ecosystem for the rural population in Colombia, in which the relevant agents and their interactions with the rural population are described in terms of financial products, public policies, guarantees and multidimensional support. Subsequently, the barriers that citizens of the rural sector in Colombia have to access and use financial products are described. This section describes the rural citizen and how he interacts with the financial system, as well as the challenges of the financial system, risk factors and gaps in access and use of financial products for the rural population. Based on the description of the Colombian context, five countries were selected that will serve as a benchmark for comparing good international practices. The selection methodology included a literary review and analysis of the World Bank's global financial inclusion data (Global Findex).

The five selected countries show significant progress in the financial inclusion of the rural population in terms of access, use and savings in financial institutions, for which the initiatives developed and the results achieved are described.

Based on the above, actionable recommendations are presented for different agents of the financial inclusion ecosystem in Colombia and conclusions that gather the learning developed during the study.

Banca de las Oportunidades, regulatory entities of the financial system in Chile, Nigeria, Peru, Costa Rica and Thailand, Central Banks of these countries, Management Reports of Finagro, Bancolombia and Davivienda, Global Findex and Global Microscope of the World Bank, USAID, among others.

Comparative data from 2011 to 2020.

Private Information

Joint Research Program - Center for Latin American Monetary Studies (CEMLA), Development Bank of Latin America- CAF

Decisiones financieras de los hogares e inclusión financiera: evidencia para América Latina y el Caribe

Multilateral International Financial decisions and financial inclusion of households

This book compiles thirteen research…