Open Banking and Open Finance fintech Floid has announced the launch of an Open Finance product designed for the factoring industry in Colombia. The service was made public at the ‘Open Finance to automate the Factoring industry’ event held in June by Asociación Colombiana de Factoring Electrónico (the Colombian Association of Electronic Factoring) and Floid, in collaboration with Clúster de Servicios Financieros, Asobancaria, and Cámara de Comercio de Bogotá (Bogota Chamber of Commerce).

Open Finance and Floid’s product capabilities As per the announcement information, the meeting looked to strengthen relationships between institutions providing financial services in Colombia, in which Floid, who has been activating as an Open Finance fintech company in Latin America, launched the product for the Colombian market to enable the automation and simplification of factoring linking flows and to expand access to financing. The service enables validation of a company’s risk in simple steps, a process in which factoring is provided with all the financial information of a company in an automatic and secure manner, authorised by the client. The tool looks to simplify a process that normally included sending physical and separate documentation by digitising it to improve decision-making, leveraging real data from the companies.

This is set to enable factoring companies to provide more products in an expedited way. Alfonso Maira, CEO of Floid advised that in Chile, factoring makes up approximately 14% of the GDP, and with Colombia being a country that is almost three times bigger than Chile, it has numerous growth opportunities, and the launch of the Open Finance product is believed to mark an important step in having such growth generated. The spokesperson stated that they have noticed factoring companies leveraging the tool increase the placement volumes of financial products, and although they are amongst the first fintechs to launch a product like this in the Colombian market, their experience within Latin America enables the belief that it helps businesses in the industry grow, offering increased and improved financing to companies that need it currently.

Juliana Carmona, Executive President of ASOFACE added that part of the enterprise’s activity focuses on bringing emerging trends into the factoring industry, and the collaboration with Floid seeks to see how to generate synergies between Open Finance and electronic factoring and which tools enable them to simplify and automate the industry. What is more, these product types are believed to continue contributing to the transformation of the industry, generating connections between new technologies and businesses, and helping drive them towards success. Based on the information detailed by Latamfintech, the event was attended by 50 decision-makers from the business world, including banks, factoring, and fintech managers.

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