Non-Financial Credit Providers Report, November 2024

Number of PNFCs | In August 2024, 486 companies were registered as non-financial credit providers (proveedores no financieros de crédito, PNFCs) with the BCRA—32 new companies and 6 being deregistered from December 2023.

Stock of financing | The stock of financing provided by PNFCs reached ARS4.9 trillion as of August 2024, up 18% in real terms compared to the end of 2023 and up 32% against March 2024, when the series reached a historical low. Other providers (+13.2 p.p. of the change, mainly associated with credit cards) and Fintechs (+4.6 p.p., associated with personal loans) drove the increase in stocks.

When analyzing the stock of financing granted based on the type of assistance, the recovery observed in the first eight months of the year in credit cards (+23%) was greater than in personal loans and other loans (+11% in both cases).

Interest rates | In line with stocks, where financing on credit cards increased more than personal loans, the compensatory interest rate for financing on credit cards shrank more than that charged on personal loans. While the compensatory interest rate charged by non-bank credit card issuers (emisoras de tarjetas de crédito no bancarias, ETCNBs) fell 89 p.p. between December 2023 and August 2024 (reaching 77% in August), that charged on personal loans by other non-financial credit providers (otros proveedores no financieros de crédito, OPNFCs) decreased 76 p.p. in the same period (standing at 141% in August).

Non-performance ratio | The non-performance ratio of PNFC loans dropped so far this year, following the trend that had started in the second half of 2023 to reach a historic low of 7.6% in August 2024.

This was explained by a significant fall of the non-performance ratio of personal loans (8.5 p.p.), which was partially offset by an increase of the non-performance ratio of credit cards (0.5 p.p.).

When breaking down PNFCs intro groups, non-performance ratios fell across all of them, except for Other chain stores. Fintech was the group that stood out, their non-performance ratio falling by 9.6 p.p.

Relative size of credit granted by PNFCs vs. financial system (FS) | In August 2024, more than 8.5 million natural persons (NPs) had credit products from PNFCs, representing 67% of debtors of the FS. If only PNFCs’ exclusive debtors are considered, this figure falls to 29%—3.8 million debtors.

In August 2024, the total credit portfolio of PNFCs represented 17% of that of NPs with the FS, and merely 4% if the analysis is limited to exclusive debtors.

Debt of PNFCs’ Customers with FIs

Number of borrowers and credit products | During the first half of 2024, the number of NP borrowers and total credit lines increased 8% and 9%, respectively. FIs granted more than 11 million loans as of June 2024; 5.6 million of their borrowers also owe debts to PNFCs.

Financing by type of credit line | The total stock granted to NPs reached ARS7.6 trillion in the first half of 2024, up 10% at constant prices compared to the end of 2023. The number of personal loans granted to NPs as of June 2024 went up 20.6% against December 2023, while those channeled through credit cards rose 3% in the period.

Non-performance of shared borrowers with FIs | The non-performance ratio of shared borrowers with the FS remained virtually unchanged compared to the previous six months, standing at 4.9% as of June 2024.

PNFC Funding at FIs and the Capital Market

PNFC funding from the financial system | PNFCs’ total debt to FIs reached ARS893,000 million in August 2024, up 37% at constant prices against December 2023.

PNFCs’ non-performance ratio of loans granted by financial institutions | Their non-performance ratio went down 0.9 p.p. in the period, standing at 0.6% in August 2024, the lowest figure since April 2018.

PNFC funding in the capital market | In the first half of 2024, financial trusts (FTs) were created for ARS227,000 million at prices of June 2024, hitting a historic low since 2018 and down 34% against the previous six months in real terms.

Boxes and Sections

The report includes a box comparing the performance of Fintech PNFCs and digital financial institutions' financing. In addition, there are two sections: one analyzes the potential contribution of open banking to the financial system's financing to natural persons (within the framework of the experiences of different countries); and the other assesses the impact of new artificial intelligence models in the loan granting process.    

Download report

To access previous editions, click here

November 29, 2024

Compartilo en Facebook   Compartilo en Twitter    Compartilo en Linkedin    Compartilo en WhatsApp