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Asbanc: Entry of credit cards from municipal banks will boost competition

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This week the first credit card issued by a municipal savings bank in the country was launched, after meeting a series of requirements that Superintendence of Banking and Insurance of Peru (SBS). In this framework, the Association of Banks of Peru (Asbanc) He stated that this is a step that will invigorate the market with greater competition.

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“I find the approach (of Caja Cusco) quite innovative. The impact on the market will be positive. The more competition there is, that will improve the service of everyone else. And this is the first box. Others will surely come and that will boost the market with the competition”, he declared to The Republic Miguel Vargas Ascenzo, general manager of Asbanc.

For his part, Jorge Solís Espinoza, president of the Peruvian Federation of Municipal Savings and Credit Banks (FEPCMAC)affirmed that the authorization to Caja Cusco to issue credit cards is a historic milestone for the savings banks, since this product is an old aspiration.

“It seemed to us that it was unfair that the court is not even. Savings banks meet the same regulatory requirements as banks. We are supervised entities, we meet the same requirements as banks, who had the oligopoly of credit cards and continue to have it in terms of other products, such as checking accounts”, Solís pointed out.

Who can access the municipal savings bank credit card?

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The Credit cards of the Caja Cusco municipal savings bank are now available to their customers. As of October, it will be enabled for the rest of the interested people, and from January unbanked citizens will be able to access it, provided they have mypes.

Regarding the minimum requirements, it is considered that potential clients must be affiliated with a maximum of three entities, have a business livelihood, with seniority in the activity of 12 months, and not reporting judicial overdue qualification, punished or loss.

The client must have a good credit history during the last year (normal classification) and be a natural and/or legal person with a business.

What benefits does this card provide?

Micro and small businesses will be able to access a credit of between S/ 1,000 and S/ 50,000 for purchases, working capital and cash availability, informed Walter Rojas, Central Business Manager of Caja Cusco.

The interest rate is 29% for purchases (consumption). This is almost a quarter of what banks charge, which, according to data from the SBS, amounts to 121.4%.

Meanwhile, for working capital, the rate will be 27%; and for cash disposal, 59%.

Source: Larepublica

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