Fintech Credits, an alternative that grows in times of declining wages

The loan market through financial technology (fintech) appears as a possibility of access to consumer credit in sectors of the population who have not been able to obtain traditional financing. These companies allow the process to be fully online and generally deposit the amount to be funded within hours.
Faced with the question of whether the speed at which credit is granted by the United States entails the danger of giving money to people without repayment capacity, representatives of some companies claim that their system develops risk profiles based on data and behaviors. "Compliance rates are similar to those of offline financials," said Alejandro Muszak, CEO of Wenance, the company owning Presto Hoy.
"We started with the intention of incorporating people who do not have access to loans, for which we use, like banks, credit scores like the Veraz," said Muszak, who pointed out that, the customer is developing a credit history with the company, the terms of future loans are improved.
"What allows the application of technology to financial activity is, by using alternative data and more sophisticated scoring models, to better understand users and reach different segments of the population," he said. Vice President of Mercado Credito Martín de los Santos. Mercado Crédito is one of the Mercado Libre units, which finances the two companies that sell there
as buyers who want to buy a product on the platform.
"In times of crisis, the use of precise technology allows you to take risks and give credit when a bank closes the faucet and does not lend," adds De los Santos.
For his part, Afluenta's CEO, Claudio Cosentino, said: "The main benefit of FinTech is that in ten seconds we give an answer based on your credit profile and in one day you filed money. "
Cosentino described PROFIL as the average candidate for an Afluenta loan: "60% are men and the average loan is about 70 thousand pesos.The average age is 42 years old and they earn about 250 thousand pesos per year. "Regarding the destination of money, 30% of Afluenta customers request it to repair their home and 15% to cancel credit card debts.
The CEO of Afluenta pointed out that while 80% of his clients are employees in a relationship of dependency, they also have monotributistas in their portfolio, "that banks usually exclude".
The interest charged varies considerably, depending on the customer. Muszak considered that one of his big challenges for Wenance is to lower rates, a fact often complex, since they are "subprime" customers, who generally do not access credit banking.

SMEs. Martín de los Santos said that, thanks to the data available on Mercado Libre, they can provide financing to small businesses when credit is reduced. "Our system evaluates 700 variables that go beyond financial reporting, because we know how much our customers are selling and how they treat the customer."
In terms of funding, market badyst Florencia Galván felt that Fintech is also "an excellent investment opportunity because it is the approaching business model", but at the same time she pointed out that in Argentina there is still a long way to go for this business to grow. "Because of our economic history, people have a hard time to trust."