Country _ Name
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Loan services / factoring / loan broking / finetrading
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FinTechs belonging to this category act as a loan creditor (even short and very short-term loans), are broking loans or receivables or conduct factoring of loans, which were given to private or business customers. In this business area you also find “peer-to-peer” (P2P) services, in which FinTechs enable a multitude of users to give loans (and brokered by the FinTech-platform) to other users or companies.

Finetrading is hereby a financial service of FinTechs, where they buy due receivables and grant the debtor an extension of payment time. 

As an ancillary service some FinTechs offer alternative credit assessment services to check the solvency of a borrower.

Introduction

Attitude of the country towards loan-giving-, factoring-, brokerage-, finetrading- and ancillary services

In Argentina, the lending segment is one of the biggest in the universe of FinTech Start-ups together with digital payments. In this sense, the number of companies in the lending segment accounts for 24% of the total number of FinTech companies (a number of 68 companies over a total of 268 FinTechs).

Legal affairs  

Obligations and requirements to provide loan-giving-, factoring-, brokerage-, finetrading, and ancillary services described above

In Argentina, lending companies that offer loans that originated in their own capital to individuals and companies are not considered to have the same applicable legal regime as banks and other financial institutions which are characterised for carrying out financial intermediation activities. Banks and financial entities are subject to the provisions of Law 21,526 (Ley de Entidades Financieras). Instead, P2P lending companies are subject to a special regime and must register before the Argentine Central Bank as “Proveedores No Financieros de Crédito”, complying with the information and surveillance regime set forth by the Central Bank in this respect.

Additional comments regarding the legal situation for loan-giving-, factoring-, brokerage, finetrading-, and ancillary services or what FinTech’s must be aware of in this business area

In Argentina, over the last two (2) years the Central Bank has had an active role in regulating the activities of P2P lending companies, imposing more severe information regimes, and regulating certain legal aspects concerning, for example, the ways in which P2P lending companies inform about the financial conditions of the loans (financial costs, interest rates). In this sense, P2P lending companies should be aware of complying with consumer protection regulations (provisions of Consumer Protection Law 24,240). Compliance with data protections regulations and prevention of money laundering and financing of terrorism should not be overlooked.

Economic conditions

Market size for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services and biggest companies in this business area

P2P lending companies are experiencing a rapid growth in Argentina as well as in the rest of Latin America. There are large groups of people and companies that are currently unable to meet the requirements to obtain financing from the traditional finance sector such as banks and other financial institutions. Lending platforms allows excluded sectors from traditional finance services to obtain financing or consumer loans with less requirements and in an easier and more efficient way along with the use of technology. The most renowned companies within this segment are Moni, Mercado Crédito, Uala, Mango, Pareto, among others.

Additional comments regarding the economic situation for loan-giving-, factoring-, brokerage-, finetrading- and ancillary services or what FinTech’s must be aware of in this business area

It is expected that the P2P lending segment continues growing exp

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