Davivienda will take over the Reins of Scotiabank in Three Countries: Colombia, Costa Rica and Panama
Davivienda and Scotiabank serve nearly 27.4 million customers in Colombia and Central America.
On Monday, January 6, Davivienda confirmed that it has signed an agreement with Scotiabank Canada (The Bank of Nova Scotia) to incorporate the operations of this entity in Colombia, Costa Rica and Panama into its financial services offering. In a move that redefines the banking landscape in Central America and Colombia, Grupo Bolívar, owner of Davivienda, is now in charge of three markets that had the Scotiabank seal. It was reported that “this alliance represents a strategic advance in Davivienda’s positioning in the region, maintaining Scotiabank’s global experience by becoming a shareholder of Davivienda. The agreements will allow Davivienda to bring an innovative and competitive value offer with a global vision to the Latin markets where it operates.”
Scotiabank becomes a shareholder, with approximately 20% of all Davivienda operations and participation in its board of directors.
This was reported by several Colombian and Costa Rican media. This transaction not only represents one of the largest recent financial sector agreements, but also positions Davivienda as the bank with the largest number of credit cards in Colombia, surpassing the current leader Bancolombia. According to the newspaper La República, the bank manages 3.8 million credit cards and also has around 13 million clients, approaching the position of Bancolombia, which has more than 14 million clients. The Cortés family, one of the most influential in the country, is at the head of Grupo Bolívar, owner of Davivienda. The family has managed to consolidate its fortune through its participation in sectors such as insurance, construction, banking, publishing and others.
At the end of last year, Reuters reported that Scotiabank would be restructuring its global strategy, which could imply its exit from Central America and Colombia. The Canadian bank remains in the markets, but with a very conservative participation. Scotiabank becomes a shareholder, with approximately 20% of all Davivienda operations and participation in its board of directors. In the case of Panama, this agreement represents a huge advantage for Davivienda. As of September 2024, Scotiabank had a loan portfolio of $2.87 billion in the country, while Davivienda reported $854 million. The bank reported that in regional terms, assets would increase by around 30% in Colombia, 90% in Costa Rica and 180% in Panama.
