Functional Solution for the Development of (G2P) Payments for the Bogotá District.

A recent study by the World Bank
concluded that the current payment system for the Guaranteed Minimum Income (IMG) in Bogotá has made significant progress in expanding coverage to vulnerable populations, including households in extreme poverty, older adults, and people with disabilities. However, operational complexity and lack of automation in many processes have led to inefficiencies and risks, such as payment errors and confusion among beneficiaries regarding digital wallet options. The analysis highlights that 65% of beneficiaries have more than two digital wallets, and the prevalence of manual procedures increases the risk of fraud and operational bottlenecks. The study emphasizes the need to move towards automated and secure processes, improve data protection policies, and strengthen information campaigns, so beneficiaries understand their options and rights.
To address these challenges, the study evaluates four alternatives for implementing the customer choice model in payment methods: (i) in-person selection at Social Integration Secretariat -SDIS- offices, (ii) confirmation via WhatsApp, (iii) development of a dedicated application by the SDIS, and (iv) integration with the
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digital payments ecosystem. The WhatsApp and
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options were recommended for detailed analysis, as they offer scalable and user-friendly solutions, minimize operational burden, and allow full beneficiary choice across the financial system. In particular, the
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model stands out as the best long-term solution, enabling beneficiaries to select any account within the financial system and facilitating mass payments for government programs. However, successful implementation will require investments in automation and digital infrastructure (both at the Central Bank and Bogota’s level), and regulatory adaptation, but promises greater efficiency, cost savings, and better experience for cash transfers’ beneficiaries.
Based on these results, the World Bank seeks to support SDIS, the Finance Secretariat of the Bogota District (SHD using the Spanish acronym) and the Central Bank of Colombia in: (i) designing and proposing the functional solution for registration of alias
associated with the beneficiary's account and deployment of disbursement capabilities leveraging the fast payment system
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, and (ii) undertaking a preliminary analysis of the regulatory, technical and operational aspects of the functional solution, across different implementation pathways.
The study will deliver the documented functional requirements that must be in place for participating agencies’ architecture and operational processes to support the proposed capabilities. These requirements will define the functionalities, processes, data exchanges, controls, and validation mechanisms required for the system to operate effectively. In this context, the functional requirements delivered by this study will serve as a basis for subsequent software development and hardware implementation stages by the relevant agencies, expediting the process to procure and deploy the technical architecture and system components.
The functional requirements will cover two main functionalities:
·
Registration of the alias associated with the account in any financial, microfinance, or cooperative entity participating in
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,
where the beneficiary wishes to receive social benefits. The functional requirements will document a solution that enables the capture of beneficiary choice across multiple access channels and mechanisms.
·
Facilitating the payment of benefits or subsidies through the
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fast payments ecosystem by analyzing different disbursement models.
The project will use as a reference the technological and functional architecture of the Bogotá District, both the one managed by SDIS for the registration of beneficiaries’ accounts, and SHD for benefits’ delivery through its Enterprise Resource Planning (ERP) system, discussed in the aforementioned study.