A more dynamic credit market not only benefits businesses and entrepreneurs, but also contributes to the financial inclusion of the population.
Argentina presents a unique panorama in Latin America with regard to access to credit. World Bank data reveals that while the region has an average domestic loan ratio of fifty%, Argentina is at the opposite extreme with a 12%the lowest figure on record.
This is because until very recently, loans to the government offered higher returns than those granted to individuals or companies, since a model with regulated interest rates operated. The recent provision of the central bank The expansion of credit instruments has created a window of opportunity to boost the sector and promote its growth.
A credit market A more dynamic credit system not only benefits businesses and entrepreneurs, but also contributes to the financial inclusion of the population. By expanding access to credit, it facilitates the acquisition of goods and services, the financing of projects and the creation of new businesses.
In this sense, the world Fintech With its agility, innovation and different technological solutions, it is allowing more people and companies to access the financing they need to grow and invest. Not only do they expand the offer of credit and reduce barriers to entry, but also personalize the experience and promote access to unbanked sectors.
How many people have a fintech loan?
According to a report prepared by FECOBA (Federation of Commerce and Industry of the City of Buenos Aires), some 5.3 million people In Argentina they have a credit with a fintechwhich represents the fifteen% of the total loans of the financial system.
Another contribution of the fintech is the alternative mobile scoring that uses AI to evaluate credit solvency taking into account non-traditional data such as social media behavior and consumer habits. This means that Banks, Fintech, traditional financial institutions, credit houses and retail companiesamong others, can incorporate much more data than they have today, resulting in better loans to businesses and consumers.
Collaboration between traditional financial institutions and fintechs is essential to boost economic growth and promote financial inclusion. It is a path that requires commitment, dialogue and openness from both sectors, with the aim of building a more efficient system that benefits all Argentines.
CEO of Findo, an alternative credit scoring service to expand access to financing.
Source: Ambito
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