Banco de Bogotá
Encyclopedia
Banco de Bogotá (English
: Bank of Bogotá
) is the first commercial bank established in Colombia
.
and the Bahamas. In the United States
, Banco de Bogotá operates two agencies agency
, one in New York, New York, and in Miami, Florida
. Grupo Aval, a holding company
which is one of the largest and most influential financial entities in Colombia, owns a majority of the Bank's outstanding voting shares.
National Information Services (FIS), Inc. announced the successful implementation of its retail
lending software package, Advanced Lending Solution (ALS) – Servicing Manager at Banco de Bogotá. The efforts of the bank’s technical consultants and FIS experts enabled Banco de Bogotá to be the first financial institution in its market to introduce a new personal loan product, "Prestamo Personal Libre Destino."
Banco de Bogotá has utilized FIS’ deposits, savings, financial management
and architecture to support its retail banking
operations since 1988. Following a change in local banking regulations in the fourth quarter of 2005, the bank needed to upgrade its lending system quickly to launch a new consumer loan product into the market. Banco de Bogotá introduced the new product in February, ahead of its competitors, and captured a significant share of the market.
The bank selected FIS’ ALS-Servicing Manager, a customizable loan
processing application that supports customer and account servicing requirements for the life of the loan. The Banco de Bogotá team quickly adjusted the features for the Prestamo Personal Libre Destino, using ALS-Servicing Manager’s real-time
product parameter facility, to select processing options that addressed interest accruals, late charges and payment posting options. The Bank expected to attract 3,000 new customers a month with this new personal loan product. It is also planning a follow-up phase, which will utilize ALS-Servicing Manager for a new line of credit
product and add additional inquiry transaction functionality for the teller system.
, management
, operations, capital
adequacy, loan classification and loan loss provision standards. In addition, the Superintendency monitors compliance by financial institutions with applicable laws and regulations and may order preventive measures and impose sanctions on financial institutions.
English language
English is a West Germanic language that arose in the Anglo-Saxon kingdoms of England and spread into what was to become south-east Scotland under the influence of the Anglian medieval kingdom of Northumbria...
: Bank of Bogotá
Bogotá
Bogotá, Distrito Capital , from 1991 to 2000 called Santa Fé de Bogotá, is the capital, and largest city, of Colombia. It is also designated by the national constitution as the capital of the department of Cundinamarca, even though the city of Bogotá now comprises an independent Capital district...
) is the first commercial bank established in Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
.
Overview
Founded in 1870, Banco de Bogotá is the oldest commercial banking institution in Colombia, and operates through 274 branches, five corporate service centers and a banking attention center in the country. On a national level, it also operates through subsidiaries: Corporacion Financiera Colombiana S.A., an investment bank; Almacenes Generales de Deposito "Almaviva S.A.", a products supply logistics company; Sociedad Fiduciaria Bogotá "Fidubogotá S.A." and Fiduciaria del Comercio "Fiducomercio S.A.", trust and portfolio investment companies; Leasing Bogotá S.A., a leasing company; Valores Bogotá S.A., a provider of brokerage services; and Fondos de Pensiones y Cesantias Porvenir, a pensions and suspensions administrator. It also owns bank subsidiaries in PanamaPanama
Panama , officially the Republic of Panama , is the southernmost country of Central America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. The...
and the Bahamas. In the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, Banco de Bogotá operates two agencies agency
Agency (law)
The law of agency is an area of commercial law dealing with a contractual or quasi-contractual, or non-contractual set of relationships when a person, called the agent, is authorized to act on behalf of another to create a legal relationship with a third party...
, one in New York, New York, and in Miami, Florida
Miami, Florida
Miami is a city located on the Atlantic coast in southeastern Florida and the county seat of Miami-Dade County, the most populous county in Florida and the eighth-most populous county in the United States with a population of 2,500,625...
. Grupo Aval, a holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
which is one of the largest and most influential financial entities in Colombia, owns a majority of the Bank's outstanding voting shares.
Software Implementation
On June 20, 2006, FidelityFidelity
"Fidelity" is the quality of being faithful or loyal. Its original meaning regarded duty to a lord or a king, in a broader sense than the related concept of fealty. Both derive from the Latin word fidēlis, meaning "faithful or loyal"....
National Information Services (FIS), Inc. announced the successful implementation of its retail
Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
lending software package, Advanced Lending Solution (ALS) – Servicing Manager at Banco de Bogotá. The efforts of the bank’s technical consultants and FIS experts enabled Banco de Bogotá to be the first financial institution in its market to introduce a new personal loan product, "Prestamo Personal Libre Destino."
Banco de Bogotá has utilized FIS’ deposits, savings, financial management
Corporate finance
Corporate finance is the area of finance dealing with monetary decisions that business enterprises make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize shareholder value while managing the firm's financial risks...
and architecture to support its retail banking
Retail banking
Retail banking is banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and transactional accounts, mortgages, personal loans, debit cards, credit cards, and so forth.-Types of...
operations since 1988. Following a change in local banking regulations in the fourth quarter of 2005, the bank needed to upgrade its lending system quickly to launch a new consumer loan product into the market. Banco de Bogotá introduced the new product in February, ahead of its competitors, and captured a significant share of the market.
The bank selected FIS’ ALS-Servicing Manager, a customizable loan
Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
processing application that supports customer and account servicing requirements for the life of the loan. The Banco de Bogotá team quickly adjusted the features for the Prestamo Personal Libre Destino, using ALS-Servicing Manager’s real-time
Real-time computing
In computer science, real-time computing , or reactive computing, is the study of hardware and software systems that are subject to a "real-time constraint"— e.g. operational deadlines from event to system response. Real-time programs must guarantee response within strict time constraints...
product parameter facility, to select processing options that addressed interest accruals, late charges and payment posting options. The Bank expected to attract 3,000 new customers a month with this new personal loan product. It is also planning a follow-up phase, which will utilize ALS-Servicing Manager for a new line of credit
Line of credit
A line of credit is any credit source extended to a government, business or individual by a bank or other financial institution. A line of credit may take several forms, such as overdraft protection, demand loan, special purpose, export packing credit, term loan, discounting, purchase of...
product and add additional inquiry transaction functionality for the teller system.
Regulation
Banco de Bogotá is supervised by the Colombian Superintendency of Banking, which is primarily responsible for the regulation and supervision of Colombian financial institutions, including their foreign offices, subsidiaries, and affiliates. The Superintendency issues and promulgates supervisory regulations concerning accounting requirements, asset qualityAsset quality
Asset quality an evaluation of an asset to measure the credit risk associated with it.-Description:Asset quality is related to the left-hand side of the bank balance sheet. Bank managers are concerned with the quality of their loans since that provides earnings for the bank...
, management
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
, operations, capital
Financial capital
Financial capital can refer to money used by entrepreneurs and businesses to buy what they need to make their products or provide their services or to that sector of the economy based on its operation, i.e. retail, corporate, investment banking, etc....
adequacy, loan classification and loan loss provision standards. In addition, the Superintendency monitors compliance by financial institutions with applicable laws and regulations and may order preventive measures and impose sanctions on financial institutions.