Fintech and non-bank loans grew by more than 20%

In an environment of falling bank lending, financing provided by fintech and non-bank entities grew in the second half of last year. According to a Central Bank report in the second half of 2021, the amounts of loans granted by this type of company increased by 20% e the number of people applying for this type of financing increased by 21%.

The BCRA report examines what the institution qualifies as a non-financial credit provider. This category is made up of lenders who subsidize non-bank and fintech credit cards offering financing.

The data are used to analyze how a sector of society is financed and consumed which, either due to its low level of income or because it cannot access the requirements required by a bank, is aimed at this type of actor.

“Considering that the PNFC serves to clients with income lower than those of financial institutions, at the same time they direct their services to people self-employed or employees, its financing would be mainly destined for consumption (as opposed to those credits destined for investments or working capital) “, specified the Central Bank in its report.

According to the BCRA, as of December 2021, a total of 336 companies reported their borrower portfolios, reaching a financial balance of $ 514,000 million. which represents a 20% increase over what was reported six months earlier.

“Non-bank credit card assistance increased by 13% in real terms over the same period, being those with the highest participation in the total balance (55% at the end of 2021), “the report reported in detail that the rest of the assistance grew by 30% at constant values, mainly explained by personal loans.

Within this universe, the role of fintech as a gateway to the financial system remains firm. At constant prices, i.e. discounting the impact of inflation and other changes, Fintech companies doubled their loan amounts in the second half of last year.

In total, until December 2021, 8.8 million people were funded in this way, which represents a 21% increase over the previous measurement. The BCRA report showed that fintech companies increased the amount ofand customers who do not credit their assets to bank accounts, therefore, they have no other means of financing within the system.

Analyzing the population that applies for these loans, it is women and the youth segment that have the most prominence. 52% of the loans granted by this segment are requested by women andAs of December last year, 68% of these loans were aimed at people between the ages of 30 and 64.

However, the Central registered it the participation of children under 30 was the one that grew the most in this periodsince it had an increase of 136%.

As for the rate applied by these players, on average in December 2021 they reached 114% of the TNA (nominal annual rate): fintech applied higher rates, reaching 126% at that time; while cooperatives and mutuals are the lowest, 84%.

YN