Jose Vargas, EVP, Latin America
Current banking/lending landscape: • It depends which country in the region, but in general we’re seeing slowdowns in revenues and loans being originated. Interest rates are being increased to contain inflation, and you’ll have less access to credit due to it now being more expensive/less affordable credit. • Some larger banks are cautious, with some international banks exiting some markets or focusing in on those regions that are more profitable. But we continue to see fintechs that push forward. They will be cautious and stricter on their credit policies to avoid big losses in uncertain times, but they’re continuing to enable access to credit for consumers. How can financial institutions support their customers? • Financial institutions need to continue to find ways to grow in sustainable, efficient ways by using technology to better manage risk and continue to provide credit and financial services products to consumers. • Rather than focusing on acquiring new customers, FIs need to leverage their existing customer base and grow organically by supporting customers across the entire lifecycle. New innovations and lending products from fintechs/ banks: • Necessity is the mother of all invention. We continue to have the pressure of inflation and a slowdown in the economy, which means a flourish of innovation, as fintechs have shown over and over. Banks historically take a more conservative approach, but fintechs will more easily accept new risk and try to cover the gaps that more risk-averse FIs will expose.
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