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Credit reinvention is essential in Argentina

The economic situation in Argentina shows a long-standing problem: traditional banks do not offer credit products that are reliable development tools for individuals as well as small and medium enterprises. Futher reading at http://www.codash.org/instant-online-payday-loans-receive-funding-with-internet-payday-loans/

Access to credit is a matter of few

Access to credit is a matter of few

only 50% of the population has a savings account and that universe there are few who enter credit lines that are linked to the growth and achievement of a project, be it personal as the purchase of a home or commercial as the investment in a company .

An even smaller percentage is the number of people who have a credit card (about 24%), who face high interests and, in part, are victims of a lack of segmentation in financing rates. For example, Argentines with a healthy credit history and an acceptable income are caught in the model. The same happens to those who cannot access financing lines due to the high interests of the traditional banking and financial market.

The credit system is inefficient and does not live up to a country

The credit system is inefficient and doesn't live up to a country

Whose productive imprint rests on the talent of its entrepreneurs. The mechanism does not correspond if we take into account that the main digital-based technological unicorns of the region have left the Argentine market. Even more, it is not functional if we see that it is small and medium-sized businesses that grant 80% of the workplaces, despite being the most difficult to overcome when obtaining financing or renegotiating credits. In short, banks act in “Error 404” mode, a server that the user simply cannot find.

Separate issue but wrapped in the same plot is debt consolidation. While it may be a way to reduce payments, it keeps keeping the user in a delinquent spiral. It is known that the use of credit and debit cards in Argentina represents ways to finance consumption, but the dangers for those debtors who fail to pay on time are not yet properly addressed.

With technological innovation in the financing system

With technological innovation in the financing system

Good Finance has allowed the automation of advisory processes, reduction of structural costs and agility in obtaining loans through online solutions, favoring SMEs and workers who require financial support in an unfavorable economic context.

It is reasonable then that people find in the Good Finance market several reasonable options to face their delinquency and settle their debts. Good Finance companies that streamline and make the financing system more competitive in the country appear as an alternative, different and innovative, for the professional middle class.

The high costs of money in the banks, the old technological processes – and already almost obsolete – that make their services more expensive and the lack of financial education make people distrust and not be motivated when doing such operations. A clear example of this is the costs associated with remittances. The decline in market competitiveness and exclusive alliances among large operators make sending value too expensive.

Although the picture is not entirely encouraging, the Good Finance experience proves that there is a way out of the maze. It is these companies that reinvent and energize the credit market in the country that create a favorable climate for families and companies in search of mortgage financing, working capital or even debt consolidation.

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