More than 10 million people accessed financing through Non-Financial Credit Providers (PNFC)According to the report published by the Central Bank of the Argentine Republic (BCRA).
Within the report, the monetary authority defines the PNFC as “those legal entities that, without being financial entities, carry out credit offers to the general public as their main or accessory activity, regularly granting financing”.
At the end of the first quarter of 2023, 456 companies as PNFCof which the third percentage with the highest participation of the total (11%) corresponds to fintech group.
The institution considers a Fintech provider to be any company that operate through exclusively digital channels or have at least one channel where the credit application, acceptance and granting procedure is purely digital.
Fintechs were the only group within the PNFCs that registered a slight growth in their financing balances during said period (2%). Conversely, the rest of the groups in this conglomerate experienced reductions ranging from 3 to 12%.
“The role of Fintech credit is key to being able to include in the system a large number of Argentines who are not considered credit subjects by the traditional financial system, because they do not have a credit history”stressed Ignatius Plazapresident of the Argentine Fintech Chamber.
In this sense, he analyzed: “Thanks to the use of technology, Fintech companies can weigh other variables that are reliable parameters when granting a loan and, in this way, Collaborate so that these people can begin to build their history and then have more opportunities to enter the financial system”.
Fintech companies increased the participation of individuals without a salary account
Complementarily, Human persons (PH) without a salary account represented 59% of the PNFC portfolio compared to 48% in the second semester of 2022being the Fintech group the only one that increased the participation of this type of client.
In the second half of 2022, the Fintech group was the only one that increased its participation in the total balance granted to 16%, and increased it by one percentage point at the beginning of 2023 (17%).
In relation to the amounts, and comparing December 2021 and December 2022, the increase was 24%registering more than $166,300 million.
Source: Ambito
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