Canada    FinTech Guide    Chapter 7    Spain


7. Loan Services / Factoring / Loan Broking / Finetrading
AAA  Spain


Legal Affairs


As for Fintech companies that provide loan services, Spanish law does not generally impose any formal or material requirements for granting loans and are governed by the general commercial law. An exception to this is that for consumer loans, the agreement has to be drawn up on paper and they use the denomination of financial credit establishments (“Establecimientos Financieros de Credito”), specialized in the granting of credits and loans in a specific field such as consumer credit, mortgage credit, credit cards, guarantees, leasing (leasing with purchase option), factoring (assignment of a credit portfolio). On the one hand, for loans of considerable amount, the market practice is to grant a loan in writing before a Spanish notary so that the lenders (Fintech companies) can enforce the loan through special foreclosure procedures for notarized agreements. On the other hand, for loans of a small amount, an agreement between the parties is enough. P2P lending is considered as a crowdlending activity under Spanish law and is regulated in Law 5/2015, of April 27, on the Promotion of Business Financing ("LFFE).As for Fintech companies that provide brokerage, finetrading and ancillary services, so long as they are not conducted with funds collected from the general public (i.e. banking activity) there would be no need for the Fintech to obtain a bank license.



Economic Conditions


Growing market. Here is a chart of the most popular business activities for Fintech companies. Fintech that provide loan services (23%) are very popular.



Source:
https://www.xataka.com/aplicaciones/la-explosion-del-em-fintech-
em-por-que-se-empieza-a-dudar-que-vayan-a-existir-bancos-en-diez-anos



 

Contributing Authors

Ventura Garcés & López-Ibor

Claudi Garcés
Barcelona, Spain


Alfonso López-Ibor
Madrid, Spain

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Chapter Index:


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018