Thursday , September 29 2022

Costs of financial services – Personal Financing – Economy



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The rate of the Bank of the Republic with 350 basic points – from 7.75 percent to 4.25 percent – not only lowered credit for Colombians but also I was at a lower cost on credit cards, which fell between 5 and 12 percent real last May.

Although the analysis of the organization allowed to establish that the costs for the cards decrease, it also warns that the greatest benefits are those that differ their purchases only by payment.

"The user who has delayed their purchases at 12 installments is about 4 times the cost of the user of 1 amortization or 10 times that has delayed 36 installments," explains Anif.

By the end of 2016, credit card costs showed an increase between 2.7 and 6 percent annually, due to an increase in the price of the issuer, but between 2017 and 2019 this cost fell, in line with the loss of the taxes of the Bank of the Republic.

But while card holders have become a little relieved, in the account of savings and online banking services the news is not as good as these costs have, however, grown.

According to Anif's economic research center, when it revision of its bank costs index (Icba), there are increases in the costs (consolidated) of these between 8 and 17 percent of actual realities at the May 2019 reduction, "what is explained (partially) of the lowest interest rates paid to savers ".

Exercise performed by the organization in two accounts, orna, which maintains a balance of 1 million pesos and another one of 4 million, shows that, in both cases, between 2015 and 2017, the costs of these decreased averaged 5.6 and 7.5 percent respectively.

This mainly due to low service services such as: automatic debit (-21% annual real in both cases); collective fee (-4.8% per year); deliveries to other holders (-4.3 percent per annum); and cost handling (-2.9 percent per annum).

Not so expensive

However, this same exercise showed that in the last year this decline trend was reversed, showing increases of more than the actual year 8.4 percent in May 2019, for the first case and over 17 percent, for the second, above the levels observed in 2014.

On this occasion, Anif warns that the increases have come from the equilibrium research (49 percent real in May 2019), which could be a consequence of the strategy to disable this service in physical branches. given the alternatives of low cost and greater security offered by internet banking. I could also influence the payment collection (6.4 percent), which most banks keep.

Despite these varieties, It is estimated that Colombians are not among the financial services users who pay the highest rates in Latin America, according to a recent report of the Banking Association (Asobancaria).

"While assessing costs in other countries in the region, it has been found that, for the most frequent services such as credit card and savings management costs, and for withdrawal at ATM of the same unit, in none of the cases Colombia occupies the first place; It's under the regional average in these areas, "says the union.

For example, Colombia is fourth, in a sample of nine countries, with monetary income on bankruptcy in a own holder with one dollar, on average, compared to twice as much as it costs in Uruguay.

I am in the seventh box with a low cost to handle a share of the savings bank, compared with 6.2 and 5 dollars from Chile and Uruguay, and even below the average of 2.6 dollars in the region.

And with regard to the cost of using credit cards, it is in a fifth position with $ 14.5, much below the 41,1 dollars of the Dominican Republic or $ 18.3, which is the average for Latin America. . Below are Chile, Ecuador, Mexico and Uruguay, according to the Asobancaria.

EQUIPMENT AND business

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