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Subject
Peer-to-peer lending.
Significance
Financial technology (fintech) is starting to increase financial inclusion in Latin America. Lending is key to this. Peer-to-peer (P2P) lending has significant potential to give access to credit at relatively reasonable interest rates to those who traditionally have been ‘unbanked’.
Impacts
Technology-driven moves to increase financial inclusion will lead to new alternative finance providers emerging across the region.
Regulation will struggle to keep pace with technology, which is likely to stem the growth potential of alternative lending.
Trust issues will be a key barrier to savers depositing money with P2P lenders in Latin America.
Keywords:
Latin America,
LA/C,
Argentina,
Brazil,
Chile,
Colombia,
Mexico,
Peru,
Uruguay,
industry,
politics,
social,
banking,
finance,
internet,
private sector,
regulation,
technology,
poverty,
regional,
telecommunications,
Banks,
Diversified financial services
© Oxford Analytica 2020. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2019
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