The Business Year

Leading pension companies are using digitization, among other techniques, to reform Colombia's pension system.

Alain Foucrier Viana

CEO, Colfondos

Pensions in Colombia are a regulated industry that offer great potential, as labor formality and economic growth materializes with higher growth rates that match those of developed economies. Colfondos has achieved sustainable double-digit growth in operating revenue amidst difficult market conditions and industry inefficiencies. In particular, we have one issue that has negatively impacted our results for the past decade: the increase in the cost of disability and survivorship insurance for our pension customers. To maintain its competitiveness, Colfondos had to look at internal improvements and operational effectiveness in our daily operations. We also try to keep pace with technological innovation within the sector and have migrated over 80% of our transactions to digital self-service channels. We are investing a great deal in innovation and plan to invest even more because we have reduced our footprint in terms of branches to benefit from cost efficiencies without sacrificing customer service.

Adriana Maria Guzman

President, Colpensiones

The main goal after establishing in 2012 was to keep the entity up to date. Our procedures are all in order, which is an important indicator compared to past years. Today, our goal is for all procedures to be addressed by March 2018. We have a great team that has a great deal of responsibility and is assisted by the latest technology. All our office tasks are technologically handled; this has also eliminated corruption massively. We are one of the highest ranked companies and the best pension fund in Colombia. At present, we have close to 1.3 million pensioners and 6.5 million affiliates. The challenge for us is to broaden coverage, which means people should formalize employment or employers should formalize their workers. Our aim in Colombia is to provide personalized council and give the best advice possible. From a macroeconomic perspective, Colombia is handled responsibly, which makes it secure for foreign investment.

Santiago Garcí­a Martí­nez

CEO, Santiago Garcí­a Martí­nez

In the last two years—and this will likely continue in the near future—we have continued on the path of growing our position as a premier wealth and asset manager in Colombia. We follow a different strategy than most of our competitors; instead of the mass market, we are selective of the type of customers we serve. In the last three years, we created a new wealth management unit focused on serving high net worth individuals and brought together a group of tax, legal, and financial specialists to serve that market segment. Although we have four different legal entities: a pension company, a trust company, a life insurance company, and a stockbroker, we take customer segments as the principle to organize and operate. In terms of future goals, the company is betting on five core strategic initiatives: improving market positions, product innovation, commitment to digital, cost efficiency and automation, and retaining the best talent—one that understands that drivers of the past are different from the drivers of today.

Miguel Largacha

President, Porvenir

2017 was an outstanding year for Porvenir and more importantly, for our customers. Porvenir has taken advantage of the markets and had great results in terms of the returns for our billings. We gained more than 637,000 new customers and reached COP100 trillion (USD36 billion) in assets under management in our mandatory pension fund. We have continued to work on our internal processes in order to become one of the leaders in the local industry. In 2017, Porvenir was one of six Colombian companies that received recognition from the government for our work on improving transparency; we were also awarded the next level of quality certification in 2017. We have set great goals in 2018 to ratify our leadership. We expect to register an increase of more than 600,000 affiliates. Finally, we need to assess the best investments for our current assets under management in order to secure good returns for our customers.

Juan David Correa Solorzano

President, Protección

Today, we have a market share of around 35% with an important evolution in terms of the assets managed. Most importantly, we have about 7 million customers, and our main purpose is to help more Colombians achieve their dreams. Colombia has the lowest savings rate in Latin America and it is our responsibility to educate our clients. Protección has experts who work together to provide education, services, and financial, pension, and tax advice to provide the best possible assistance to customers. Pension reform is an immense challenge, one that Colombia must face as soon as possible, because the world’s demographic conditions are changing every day. Two major steps to improve Colombia’s pension reform are increased coverage and a sustainable multi-pillar system. In 2018, Protección is looking first to create a memorable customer experience and second to contribute to a change in the behavior of all our stakeholders.



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