BOGOTÁ, Colombia--(BUSINESS WIRE)--Banco de Bogotá received The Banker’s 2019 Tech Project Award for “Digital Transformation Technology Project of the Year.” According to this publication, which specializes in financial intelligence and is a member of the Financial Times (FT) group, the award recognizes the most innovative, creative and successful financial technology projects in the world. “Scooping the most sought-after award in 2019 is Banco de Bogotá’s New Online Banking project... [The project] is changing the way in which Banco de Bogotá interacts with its customers, making digital transactions easier, leading them to carry out more advanced operations,” the magazine mentions in its August issue.
"This is a recognition of our more than 6 million active banking customers in Colombia and Central America, who are at the center of our strategy and push us to innovate at the highest standards. Moreover, it’s an award for our team, who make it possible for us to successfully achieve this transformation process," said Julio Rojas Sarmiento, who is responsible for Banco de Bogotá’s digitalization strategy, as Chief Financial Officer of the Bank.
BdB Digital Transformation Strategy
Banco de Bogotá, a subsidiary of Grupo Aval, operates with a customer-centric mentality at the center of its strategy. Only with this approach is it possible to meet and exceed client expectations that are ever-more demanding of 24/7 connectivity, personalization, simplicity, security, and above all else, solutions.
In digital, the Bank identified an optimal tool to generate a better customer experience and to achieve a more efficient operation. Banco de Bogotá launched its Digital Lab in 2017 as a dedicated area focused exclusively on the construction and execution of the firm’s digital strategy. The philosophy behind creating a separate space was to prioritize focus and velocity; however, its success can be attributed as much to its internal dynamics as well as its ability to collaborate with numerous different business units across the Bank and the broader financial group.
Banco de Bogotá was the first Colombian bank to launch a 100% digital savings account, and since then, has brought to market digital credit cards, payroll loans, unsecured term loans and mortgages, all of which can be opened in five minutes or less across any of the Bank’s sales channels. Initially, based on international benchmarks, the Bank set a goal of having digital products represent 25% of total consumer sales by 2021. As of June 2019, the bank had already significantly exceeded its expectations. For example, digital savings accounts represented 52% of total savings account sales and digital credit cards represented 45% of total credit card sales.
To complement this digital ecosystem of consumer product sales, the Bank serves its more than 2.4 million active digital customers across Colombia and Central America through its online banking platform and mobile app. A few months ago, Banco de Bogotá rolled out a new web platform for its retail clients in Colombia, allowing customers to complete transactions and generate service requests in a fast and simple manner. The project was implemented using cloud technologies that allow rapid integration with APIs and connections with the Bank’s core system.
On a consolidated basis, Banco de Bogotá invests approximately $500 million dollars annually in technology, which amounts to almost 25% of its total operating expenses and capital expenditures. While only a portion of this is attributable to digital, it’s an ever-increasing component, in-line with the results that have already been produced. In fact, given the structure that has been implemented around the reallocation of resources to fund this strategy, it’s already positively contributing to the Bank’s net income.
This recognition for “Digital Transformation Technology Project of the Year” adds to the three recently received “Best Bank of the Year in Colombia” awards from ‘Global Finance,’ ‘Euromoney' and ‘The Banker.’ Banco de Bogotá is humbled and honored to have received these awards, but more than anything, is thankful to its clients and team members for making it possible.