Spanish bank BBVA and Telefonica have inked an agreement to launch a joint venture (JV) to provide consumer loans in Colombia.
Dubbed Movistar Money Colombia, the new entity will be an equal stake JV.
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The new entity will sell loans to Telefónica’s customer base in Colombia, which include more than 19 million individuals and companies.
It will offer consumer loans for free investment as well as loans for the purchase of terminals and devices.
Clients can manage the loan digitally and will have the option of getting the amount and payment form tailored depending on their financial profile.
BBVA head of New Businesses and Strategy in Clients Solutions Jordi García Bosch said: “This agreement represents a boost to our strategy to continue growing and reaching new customers through agreements with leading players in their sectors, like Telefónica.”
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By GlobalDataThe development of the JV follows a pilot that was conducted for six months in Colombia.
The new products will have a phased launch, with the companies initially offering loans for the purchase of terminals.
The second phase will result in the availability of discretionary and corporate loans.
At present, the agreement covers only Colombia. However, plans are on for a broader roll-out across South America eventually.
Scheduled to be operational in the second quarter of next year, the new entity will leverage BBVA’s financial expertise and Telefónica’s technological know-how.
The agreement also involves the development of digital sales channels to make local clients aware of the new offerings.
A management team will be based in the country to coordinate the sales, financial policies and technology with the two parties.
Telefónica global consumer director Fabio Bruggioni said: “This agreement and the launch of Movistar Money services in Colombia is in line with Telefónica’s strategy to diversify its business and foster innovation in the digital world, enriching the portfolio of products offered to the company’s customer base.”
