The tool will allow customers to transfer debt from other financial institutions to their CMR Credit Card, benefiting from a preferential interest rate through a fully digital process.
Managing multiple financial obligations at the same time can make household budgeting more challenging. In Colombia, families currently allocate between 37% and 40% of their monthly income to debt payments, according to figures from the Bank of the Republic (Banco de la República) and TransUnion, cited by Banco Falabella.
In response to this situation, Banco Falabella will introduce a solution that allows customers to consolidate credit card debt from other financial institutions directly from their mobile phones through a balance transfer program. The service enables customers to transfer outstanding balances to their CMR Credit Card and access a preferential interest rate.
The option will be available directly through the bank’s mobile app, allowing customers to complete the entire process without visiting a branch office. Customers will be able to transfer debts starting from COP 300,000, review their available credit limit beforehand, simulate the amount they wish to consolidate, and choose their preferred repayment term.
The process consists of four steps:
- Log in to the Banco Falabella App and select the “Balance Transfer” option.
- Review the available credit limit.
- Simulate the desired transfer amount and repayment term.
- Register the credit card from the originating financial institution to validate the information.
The main advantage of consolidation is that customers can move from managing multiple debts and payment due dates to handling a single product with one monthly payment. In addition, they can benefit from a preferential interest rate specifically offered for this transaction.
“With digital balance transfers, we are responding to this customer behavior by allowing them to consolidate debts into a single product and access preferential rates that enable them to pay less interest than with other financial products,” said Catalina Fajardo, Head of the Banking Products Division at Banco Falabella.
The bank highlighted that the tool is designed to simplify the management of financial obligations. However, the suitability of debt consolidation will depend on each customer’s specific circumstances, including the interest rate, repayment term, and total cost of the new obligation.
For more details, see the article published by Colombia’s newspaper La República here.
