Bancolombia
Bancolombia, one of Colombia’s most modern, hi-tech banks, has won the award again this year following an amazing turnaround in its business fortunes and continued efforts in improving technology and customer service.
It posted a considerable loss for 2000 but finished last year with a handsome profit of around 210m pesos ($75,000), the highest of any bank in the country. It also achieved an ROE of 20.4%.
The bank’s profitability is due in large part to its ability to generate more fee-based income than its competitors. It also handles about 20% of foreign trade settlement transactions and 40% of credit card transactions.
Having pioneered telephone and internet banking services in Colombia, the bank continued to improve these services last year. It rolled out an updated internet banking service, which now accounts for 14% of all bank transactions.It launched Mobil Bank technology last year, permitting it to offer bank products anywhere in the country without the need to open new branches. The technology is of particular benefit to areas where there is little banking infrastructure.
CEO Jorge Londońo said: “Bancolombia is the leading financial institution in market share in the Colombian banking system, with a market share of 13% of total assets. It has the largest distribution network with 341 branches in 123 cities. The bank has focused its strategy on state-of-the-art technology, expanding its distribution network through the ‘virtual branch’ and other electronic channels. As a result, 73.6% of its total transactions are performed off-branch. Bancolombia is a universal bank with a group of affiliates that enables it to offer a wide portfolio of products and services.”
