A study of digital banks Ula reveals that Mexicans have an aversion to interest ratesWhich becomes the main obstacle to loan request. At least, according to the Argentine-born financial institution 24% of consumers avoid applying for credit lines due to high interest rates charged by banking institutions.
Andres Domínguez, general director of Uala Mexico, explained that 20% of Mexicans also refrain from requesting a loan for fear of going into debt, while 11% avoid it because of doubts about their ability to pay.
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In consumer perception, it stands that Six in 10 believe that, without a bank account, it is impossible to obtain financing; Additionally, 46% consider loans as the last option when they need money and 41% prefer to ask friends or family members for financial support instead of banks.
However, Domínguez stressed that financing, if used properly, can be a useful tool in a variety of situations. In fact, 49% of those with debt use it to start a business, 34% to buy goods, 30% to meet unexpected expenses, and 25% to settle debts.
Bet on guaranteed cards
Faced with a growing market and demand for greater financial products, Ualá is committed to guaranteed credit cards, with the aim of offering this product to a larger segment of the population.
In this product users make an initial deposit, with which they can enjoy the benefits of a credit cardUses own resources for a specific period of time.
Domínguez explained that if the client agrees to pay responsibly, after six months or a year, the deposit is released and credit is given for the same amount. Over time, this amount may increase. This card is aimed at people looking for their first credit, those with a bad history or those looking to rebuild it.
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“Our goal is to provide a credit card to 99% of Mexicans. We have estimates of how many requests may be made, but before we can deliver them, we expect demand to exceed our supply,” he said.
According to Wall, the Mexican market is far from saturation in credit products. At a time when banks, fintechs and other financial institutions are aggressively competing to win more customers.
Mexican financial sector data shows that only 15% of the country’s population has access to credit products.
YC
