Four municipal savings banks would have their credit cards ready this year

Five municipal savings banks would launch their first consumer credit card in the second half of 2023, once the regulation of the law approved by insistence in the Congress of the Republic is made official and drafted, which will allow them to access this type of market today covered only by banks.

As detailed by the Peruvian Federation of Municipal Savings and Credit Banks (Fepcmac), these would be Cusco, Arequipa, Piura and Trujillo. Caja Huancayo could potentially join them.

“The most interesting and competitive product in the revolving credit market is that of consumption, and that is where we are interested in having a participation. So, we will focus these cards, both on mypes and consumption,” Jorge Solís, head of Fepcmac told La Republic.

The representative explained that this law, approved by insistence, no longer has the possibility of being returned for review by the Executive Branch, so the entry of municipal savings banks into direct competition with banks is a fact. Especially with interest rates that would go from 24% to 32%, compared to 80% on average in the current financial market, but that on occasion have exceeded 130%, as in a pandemic.

credits to all

La República spoke with three of these microfinance institutions. In the case of Caja Piura, the Administration Manager, Javier Morante, assured that they are in a position to launch their first card in the last quarter of 2023, with rates that could go from 30% to 35%, which is on average weighting of the loans, which reaches 22%.

“We have a project started last year with good progress, so we hope to have the white march at the end of 2023. A long time ago we already had the issuance of debit cards,” he said.

For his part, Huancayo Box reported that they would be able to issue their first plastics by the second half of this year, with rates that would oscillate between 24% and 35%, depending on the credit risk of each client.

The situation of Cuzco Box it is different. This entity already enjoyed, since last August, a credit card —which it accessed through a simplified procedure before the SBS— oriented to working capital. Thanks to this, today they have a cybersecurity system and the physical platforms necessary to implement the new law in no more than six months after its regulation. The cups? The Business Manager, Walter Rojas, said that they would be a little above those currently offered for working capital (31%) and cash availability and purchases (33%).

“This initiative will boost the market and allow us to offer new products, aimed at consumer loans,” he said.

Promising credits for savings banks

Interest rates are designed based on the risk profile, that is, not all clients are charged the same. The same is the case with banks.

Of the eight financial products regulated by SBSthe municipal savings banks did not have access to credit cards for revolving consumption.

With the new law, the savings banks will also be able to incorporate multilateral organizations as partners or strategic allies, in order to strengthen themselves with international standards.

The word

Jorge Solís, president of the Fepcmac

“Today we have excellent credit risk management, Therefore, we hope that the SBS will prepare a fairly flexible and agile regulation. for the proper participation of the municipal boxes”.