If you are planning to live or spend an extended time in Colombia then opening a bank account will be very important. As soon as you have a visa then you can get a cedula and with a cedula you can open an account.
I have lived in Colombia for over 15 years and I have opened personal and business accounts here. In this article I will explain what you need, what you should look out for, help you decide which bank could be best for you and try to help you make the whole process as painless as possible.
Understanding the Colombian Banking System
Types of Banks in Colombia
In Colombia there are national and international banks operating. In addition to that you will find ‘neobanks’ such as Daviplata, Nequi and RappiPay which are online only and may be directly affiliated to traditional commercial banks or operate independently
The industry in Colombia is dominated by a handful of key players but there are other smaller, specialist or regional companies offering banking services.
Account Types
The most popular and frequently used accounts in Colombia are savings “ahorros” or current “corriente”. When you go to pay with a card or make a transfer, they will often ask if the payment is from savings or current as it is possible to have both accounts with the same bank with one single card.
A savings account allows you to receive and spend money while a checking account also allows a short-term overdraft with a limit which should be repaid at the end of the month. I have both accounts but that is only because inexplicably when I first opened my account savings debit cards didn’t have a security code, which meant I couldn’t use it to buy online. Fortunately that is no longer true and both cards are identical.
Banks can offer some other options such as payroll accounts, pension accounts, children and home accounts. These are generally stripped back options to allow people to withdraw their salary, pension or for children to access their money with fewer options. The home account is to manage a mortgage and house payments.
There are also additional services which can be added to the account at a monthly cost. The bank may offer a package with an insurance company or provide additional benefits which are linked to your account. These aren’t typical features used by most people but may be an option to add once your account is open.
Requirements for Foreigners
To open a Colombian savings account you will need a photocopy of your Cédula amplified 150%, the physical cedula document, a 150% sized copy of your visa page and your passport. Generally it is not necessary to make an initial deposit to open a savings account but some other account options may require this.
It is not possible to open a bank account with only a tourist visa. Once you have a visa that allows you to stay beyond a short term visa, such as a work visa, investor visa, digital nomad visa or residency, then you can open a bank account. The Cédula de Extranjería is the national foreigner ID card which is acquired as part of the visa process and this is what you need to open an account.
If you have a new digital cedula then you don’t need to provide a photocopy and they can scan your phone to verify.
A business account will also require a NIT (a tax ID number) and a recent certificate from the Chamber of Commerce (Cámara de Comercio) proving the business is registered. In addition those who are opening the account will need to provide a Cédula and confirmation of existing accounts with the bank.
Best Banks for Foreigners in Colombia
Colombia has I believe 23 registered banks but most are niche and regional with a few key players dominating.
Bancolombia is the by far the biggest bank in Colombia and at the end of 2023 they reported to have over 30 million clients. The bank has 938 branches, offices and agencies with almost 35,000 employees and there are 1.3 million stores which allow payment by scanning a QR code and making a Bancolombia bank transfer.
It is likely that most people you know in Colombia will have a Bancolombia account. When I need to pay a friend or pay for something, the question will usually be “do you have Bancolombia or Nequi?”. I can then scan their QR code and transfer or pay them using their phone number on Nequi.
Nequi is owned by Bancolombia and both are closely linked with easy-to-use apps. Bancolombia is very well integrated with many aspects of life in Colombia. There is always an ATM nearby and you are never too far from a branch but queues can be very long at times.
I have found the customer service to be good but I do usually dread going into the branch. My top tip is if there is a business account area then just go and sit in there. Nobody checks or cares, the seats are more comfortable plus security won’t tell you to put your phone away while you wait. You can also make cash deposits at some ATMs and there are agencies who can also receive and process deposits, which can save on wait times.
Bancolombia is a very solid, easy and convenient option but for this reason at times they don’t feel they have to lure customers in with special deals or attractive terms. You can’t go wrong with Bancolombia but you may find a better option for your personal circumstances by shopping around.
Davivienda is another large, important Colombian domestic bank which also operates in Panama, Costa Rica, Honduras, El Salvador and Miami in the US. They have over 23 million clients across Latin America with 670 offices and 2,840 ATMs.
In my experience the Davivienda branches are much less hectic and offer a more relaxing experience. I have never seen a particularly long line to deposit money plus they also offer ATMs with money deposit facilities. After Bancolombia, it is probably the second most visible bank around Colombia.
While Bancolombia has Nequi, Davivienda has an app called Daviplata. This is a way to transfer and receive money plus you can pay your phone and energy bills. Daviplata can also enable you to make quick international transfers at any time of the day. When I send a remit, Daviplata is one of the options as well as Nequi.
Banco de Bogotá is Colombia’s oldest bank and was founded in November 1970. The bank is part of Grupo Aval which is the largest financial holding in Colombia and one of the biggest in Latin America. The bank operates in eleven countries with around 24 million clients.
The bank has the third most ATMs with 1,694 as of last year behind Bancolombia and Davivienda. They have 1,477 offices across Latin America. I live in Medellin and Banco de Bogotá feels like it has noticeably less of a presence in the city when compared with Bancolombia but I feel if I needed to visit an office it wouldn’t be a problem.
The bank has an app called Banca Movil which allows transfers and payments. It isn’t as popular or as well integrated when compared to Nequi or to a lesser degree Daviplata.
I would say you won’t find any difficulties if you have Banco de Bogotá but I would only strongly recommend it if there is a particular product they offer that you are interested in.
BBVA is a Spanish bank which has a Colombian affiliate that operates in the country under the same name. They have 1,413 ATMs as of last year and around 400 offices across Colombia. The group also offers pensions, insurance, home loans and investments.
They have a BBVA Banca Movil app which allows you to make transfers and payments. You can scan the QR code at some stores to make payments and transfer to other Colombian accounts free of charge. The app is easy to use but quite stripped back and basic.
Cash withdrawals are free at BBVA ATMs and there is no monthly charge on a basic savings account. My experience in BBVA offices is they are comfortable but can be fairly slow. Not quite the levels of central Bancolombia branches but still quite a slow process.
In Colombia you will also have other national banks such as Banco del Occidente while international banks like Citibank, HSBC, Scotiabank and Itau have presence in the country.
Considerations for Choosing the Right Bank
Some factors worth considering:
- When withdrawing cash from an ATM not owned by your bank then you will often have to pay fees. It is worth checking if you have a certain number of free withdrawals per month, the fee charged and it is worth considering how many of your banks ATMs are close to where you live.
- ATMs that allow you to deposit cash are very useful and it may be another important thing to consider. You input the account number, place the cash inside the machine and then it appears immediately in the account. Alternatively, you can do so in a branch or at a money transfer location.
- The app is something else to think about. If you are just looking to check your account and make payments then most will be fine but some also allow you to track supermarket loyalty points, pay for public transport, pay phone bills etc.
- It is worth thinking about where your nearest branch is and how busy it is. Ideally you won’t have to go there very often but if it is going to take 2 hours to get anything done then that can be frustrating. Sometimes it is worth traveling a little further if you can find a quieter, more comfortable branch that saves a lot of time.
- If you don’t speak Spanish then many aspects of banking here will be a challenge. Websites often have an English option and ATMs will let you select English or Spanish but don’t expect an English speaker when you phone up. In the branch there will likely be some staff with some English who can help.
- In terms of international transfers, it is possible to complete directly with the bank but these are very slow and very expensive. I always use third parties such as World Remit or Remitly. If you have a preferred option then it would be good to verify that they can send directly to your account or if you need to collect in person in a branch.
Process of Opening a Bank Account in Colombia
Step-by-Step Guide
- Gather together your cedula, a 150% amplified photocopy of the cedula and your passport before heading to the bank
- Arrive at the bank and select “asesoria” (advisor) when you take a ticket. Keep an eye on the screen and when your ticket number is shown go to the desk indicated
- Tell the advisor you want to open an “ahorros” (savings) account with the bank
- They will work with you to fill in the form, collect your documents and take fingerprint scans
- You may receive your card immediately or wait a couple of days for it to be prepared if it has your details printed on the side. This will depend on the bank and type of card you have.
- You will be invited to go to an ATM to activate the card and they will show you how to download the app
Overcoming Potential Obstacles
The language barrier will be the biggest obstacle you will face when opening an account. I would recommend going with a Colombian friend to help translate if possible but I also believe within the bank there will be a few members of staff with some limited English – this may depend on the neighborhood, city and size of the bank.
When you make a payment using your Colombian card online to a Colombian website, you will have 2 payment options. The first is to pay as a usual card transaction and the other is to pay using PSE. Completing a payment with PSE will transfer you to log in to your Bancolombia account, for example, where you will need your email address and then your PIN. After that it will ask you for your “clave dinamica”. You will find this on the initial home screen and it is a number that changes every 60 seconds. You don’t need to log in to your account to see your clave dinamica, it will be a 6 digit number.
If you receive an international transfer of a larger amount they may ask for an explanation in the branch, this is particularly true if it is paid into a company account. This can be annoying but is unavoidable, if it is a recurring payment then the bank should be able to prevent future holdups.
Once in the bank they can be quite strict about using your phone so be prepared for that. Once you get to the desk they are more relaxed but the security guard will quickly tell you to put it away so don’t expect to get much done other than waiting.