Report on Non-Financial Credit Providers

The purpose of this report is to analyse the evolution of the financing granted by this group of non-financial entities, as well as to characterise the groups of people who have access to them.

Summary

The number of people who accessed financing from Non-Financial Credit Providers (PNFC) exceeded 9.7 million in June 2022, being the figure historically highest and 990,000 people higher than in December 2021, according to data from the Non-Financial Credit Providers Report prepared biannually by the Central Bank of the Argentine Republic.

The report also highlights the increase in access to financing by women (542,000) compared to men (422,000), and by young people up to 29 years of age (550,000) and between 30 and 64 years of age (460,000) compared to people over 65 years of age, who exhibited small reductions.

The total number of attendances reached 14 million, with a growth of 12% in the first half of 2022. For its part, the average debt for assistance decreased 14% in constant terms, reaching $48,700 in June 2022.

The number of exclusive customers of the PNFCs explained the positive performance of the period, reaching 5.3 million people in June 2022, 15% more than in December 2021.

Likewise, Fintechs expanded their customer portfolio by around 1 million people in the first half of 2022.

Other relevant data from the report:

Number of PNFCs. The number of Non-Financial Credit Providers reached 451 companies in August 2022, registering 16 registrations and 10 cancellations compared to March 2022. The register of Other Non-Financial Credit Providers (OPNFC) explained the positive performance of the period, while that of Non-Bank Credit Card Issuers (ETCNB) showed a reduction in the number of companies.

Amount of financing. At the end of June 2022, financing exceeded $681,000 million, 3% less in real terms compared to December 2021 but 13% more compared to the same month last year. The decrease is mainly explained by the fall in credit card assistance (-5%), with personal loan assistance being the only line that increased (+5%).

Evolution of financing amounts by supplier groups. The Fintech group continued to grow in the first half of 2022, expanding its financing balances 20% at constant prices compared to December 2021, reaching around $106,000 million in June 2022. The remaining groups showed contractions in their financing portfolios, with Other trade chains and Cooperatives and mutuals presenting the largest reductions.

Irregularity. The total irregularity ratio of the PNFC loan portfolio remained unchanged during the first half of 2022, at 13%, and continues to be above the level evidenced in the local financial system.

Financing balances by type of person. While PNFC’s exclusive debtors drove the largest number of individuals with financing, the year-on-year increase in financing balances was driven by shared debtors. Thus, it continued to be the individuals shared with financial institutions who maintained the largest participation in the financing portfolio of the PNFCs (59%). Likewise, 76% of the total balance in June 2022 was represented by adults (age range of 30-64 years).