In a landmark development for the financial landscape of Colombia, the Central Bank of Colombia, known as Banco de la República, has officially partnered with ACI Worldwide, a leader in real-time payments software. This strategic collaboration aims to create a comprehensive domestic real-time payments system, which forms part of a broader initiative to transform the country's banking practices.
"We are excited about the real-time payments modernization journey we have embarked upon jointly with ACI Worldwide, a global leader in real-time payments," said Leonardo Villar, Governor of the Central Bank of Colombia. This initiative is not only ambitious but also pivotal, as it seeks to establish the first collaborative payment scheme in Latin America, designed through consensus among government entities, private banks, and regulatory bodies.
The new system will leverage ACI’s Digital Central Infrastructure, an element of the award-winning ACI Enterprise Payments Platform, allowing for centralized settlement and addressing services within the existing real-time payments framework. This digital infrastructure is crucial, as the project is expected to launch in 2025, requiring all current and future payment schemes in Colombia to integrate with it.
"With the state-of-the-art technology supplied by ACI Worldwide, we are in a strong position to drive the real-time and digital transformation of Colombia’s payments ecosystem as part of our journey towards a modern, digital, and financially inclusive economy," Villar continued, emphasizing the potential impact on Colombian society.
As Colombia joins other nations in embracing real-time payments, the economic ripple effects could be substantial. Studies suggest that implementing real-time payment systems can lead to increased efficiency in the market and ultimately boost economic growth. According to a collaborative report by ACI, GlobalData, and the Centre of Economics and Business Research (Cebr), countries that adopt these systems staunchly can see annual GDP growth improvements of up to 2%.
The excitement surrounding this initiative is echoed in ACI's latest findings. ACI’s 2023 Prime Time for Real-Time report forecasts a stark rise in real-time payment transactions in Colombia, predicting an increase from 15 million in 2022 to 92 million by 2027, showcasing a compound annual growth rate of 43.4%. This growth trajectory is expected to accelerate with the rollout of the new payment scheme.
"We applaud the Colombian Central Bank for its decision to embrace innovative technologies, its ability to achieve consensus by all players in the payments ecosystem, and its determination to drive change and transformation at dazzling speed," expressed Tom Warsop, President and CEO of ACI Worldwide. He noted that improving liquidity in the financial system through real-time payments is an essential step towards enhancing overall market efficiencies within the Colombian economy.
Leonardo Escobar, Head of Latin America at ACI Worldwide, further emphasized ACI’s unique capability in implementing real-time schemes globally. "ACI Worldwide has a unique track record of successfully building real-time schemes around the world, as well as helping banks, fintechs, and other payment service providers to connect to the schemes and offer new, innovative financial services for consumers and businesses," Escobar stated, voicing confidence in the software solutions' effectiveness in bolstering Colombia’s new payment infrastructure.
This partnership between the Central Bank of Colombia and ACI Worldwide embodies a significant push towards not only digitizing payments but also enhancing access and participation within the financial ecosystem. As preparations continue, all eyes will be on Colombia as it looks to become a leader in real-time payment processing in Latin America.
The journey towards the launch in 2025 represents a critical step in modernizing Colombia's financial infrastructure, bringing the promise of a more efficient and inclusive economy for consumers and businesses alike. With the backing of strong technology and a cooperative approach to governance, the future of payments in Colombia is poised for transformation.