Lulo Bank arrives to Colombia

The digital transformation has knocked on the door of all industries and has revolutionized the way of doing business and interacting with customers and consumers. This is why the banking sector has implemented the use of online applications and services to offer digital options to its users.

On this occasion, according to the Financial Superintendence of Colombia, as of June, the coffee country would have a 100% digital bank. The Superintendency approved the operation of Lulo Bank on January 20.

This entity belongs to the Gilex Holdings Group, owned by the Gilinski family that owns the GNB Sudameris Bank. However, Lulo Bank will be an entity independent of GNB Sudameris.

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El Heraldo describes this entity as a neobank that takes advantage of current technology to operate. These types of banks have succeeded in the European and American markets. Thanks to their low operating costs, they have expanded rapidly and caught a good segment of the market. According to the same medium, in Latin America neobanks have a strong presence in Brazil, Mexico and Argentina.

How will Lulo Bank operate?

Being 100% digital, Lulo Bank will not have physical offices but will be exclusively accessible through a website and an application. The neobank will be directed by Santiago Covelli, an entrepreneur who defines himself as "entrepreneur, technology executive, storyteller and above all apprentice." Value Analitik explains that Lulo Bank will compete with products already positioned in the market such as Nequi, which is an alliance between Bancolombia RappiPay.

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The initial capital of this digital bank is COP $ 100,000 million and it will focus on offering credit cards and free investment credits. Those who purchase these products may use the existing Servibanca ATMs to carry out operations such as inquiries and withdrawals.