Leandro Elduayen

TBY talks to Leandro Elduayen, Co-Founder & CEO of Koibanx, Colombia.

Can you provide insights into your products and operations in Colombia?

Koibanx, established in 2015 and operating in Colombia since 2019, specializes in blockchain-based payment infrastructure. Colombia is our second-largest market by revenue, following Argentina where we initially began. While Argentina has a longer track record, Colombia is experiencing faster growth, surpassing other markets in percentage growth terms. We facilitate the digitalization of real-world assets, including commodities and fiat currency, connecting them to financial institutions seeking innovative solutions. Our focus is on integrating blockchain with the traditional financial system, particularly in Colombia. In this country, our current projects involve compensation chambers, such as real-time settlement networks, facilitating efficient, and transparent transactions among participants. We tokenize commodities, such as coffee beans through the Colombian Coffee Federation, enabling producers to use digital coffee tokens for payments. Additionally, we collaborate with banks to tokenize banking guarantees, ensuring transparency and efficiency in financial transactions. Our solutions cover various areas, including transactional solutions, payments, remittances, corporate payments, and settlement, all based on blockchain technology. Despite our significant impact, Koibanx operates as a behind-the-scenes B2B company. Many end-users interacting with our technology, especially in Colombia with partners like Banco Davivienda, CredibanCo, the Colombian government and fintechs, may not even be aware of Koibanx’s existence. This approach allows users to benefit from blockchain advantages without needing to be crypto-savvy, emphasizing the seamless integration of technology into everyday financial services.

When engaging potential clients in Colombia, is now the opportune moment for a structural adjustment in the financial infrastructure?

Definitely. Colombia’s banking industry, historically dominant in the country, is undergoing a shift toward openness and inclusivity. Recent regulations, driven by the Colombia Fintech Association and other stakeholders, mandate interoperability and product sharing under the umbrella of open finance—a regional trend now embraced by Colombia. Blockchain technology plays a crucial role in this evolution. In this context, blockchain facilitates the sharing of information among financial industry players while maintaining security and privacy. For example, it allows users to transfer their scoring history between banks and enables payment vendors to interact seamlessly. Blockchain ensures a transparent ledger where information can be audited without compromising security. This technology empowers all participants without granting excessive authority to any single entity. Decision-makers in financial institutions are increasingly interested in understanding and implementing blockchain to comply with open finance while safeguarding their proprietary advantages.

Is the company incorporating artificial intelligence into its technology services?

We are progressing through various stages of artificial intelligence, including data mining and machine learning within our ecosystem. With almost eight years in the market, we operate at the epicenter of processing financial asset transactions, collaborating with banks, governments and fintechs. At a regional level, we are building a collaborative ecosystem, termed “co-events,” where parties transact with anonymized transactional information, adhering to data privacy rules. We have recently assembled a new team of data scientists to analyze the transactional flow through our rails. This initiative aims to yield valuable insights into money flow directions, preferred asset classes for transactions, and user behavior in day-to-day payments. While optimistic about the potential outcomes, it is crucial to note that we are in the early stages of applying these analyses.

How does the company navigate the regulatory push for openness and collaborate with traditional banks to optimize opportunities in Colombia?

Customers typically focus on solving problems or seizing opportunities, with technology being a means to an end; however, Blockchain introduces situations where technology becomes critical, such as in compensation chambers. Koibanx’s extensive experience in building and applying this technology uniquely positions us to solve complex financial industry challenges efficiently. Our approach to the Web3 ecosystem sets us apart. While others may adopt an anti-establishment stance, we view technology as a service for all. Recognizing a knowledge gap in integrating this technology into the financial system, we bridge that divide. Koibanx’s track record, technological expertise and commercial approach make us an invaluable ally for giants in the industry, as opposed to being perceived as a competitor. We take great pride in our role, especially as Colombia finds itself at a significant turning point in its financial landscape. The regulatory push for openness among dominant players is a crucial inflection point. These players possess the intelligence to adapt and remain integral to the evolving system. Colombia, benefiting from a “last mover advantage,” observes trends from Argentina, Mexico and Brazil, offering a unique opportunity to learn and optimize for entrepreneurs, the public, and financial players. Recognizing that banks excel in certain aspects of financial business, no matter the tech savviness of other players, opens possibilities for collaboration. While tech companies bring efficiency and distribution tools, banking expertise in financial intermediation remains intrinsic to banks. Acknowledging and embracing these strengths bodes well for the promising future of Colombia’s financial industry, a path that’s already being navigated.