More than 90% of the adult population in Argentina is in a bank, ie they have a bank account. But the biggest data is what is missing: 42% of these people do not have access to credit or financing instruments. Equifax, a company that specializes in credit information, is targeting this untapped market today. Chris Jones, its president for Latin American affairs, makes it clear that it is essential to work on education and use alternative data to generate user profiles and thus achieve true financial inclusion. “We see a huge increase in digital credit in Argentina, as well as in the segment Fintech. Before the pandemic, only 5% of credit transactions were carried out digitally, today that number exceeds 70%. This is a trend that, above all, the younger generation takes very naturally, especially because it is something quick and easy. For Millennia ი Centuries “Immediacy is essential,” said Jones.

Now, he knows that the key to generating greater inclusion for this expert lies with banks, financial institutions, and Fintexes So that they can attract young people through a more accurate map of the reality in which each person lives. “It is important to have information, which we will discuss today as an alternative. For example: where a person lives, the history of paying for his services, what type of employment contract he has made, how their family is made up and see what products they have together. “All of this data allows you to form a different view of the person to whom you can offer products or funding,” Jones said.

He adds: “In the past, entities only saw the credit line of their customers, and thus many opportunities were lost. Today we are facing a concrete opportunity for growth in the financial market. In our view, banks should feel safe when issuing loans. Starting a more open approach to the non-traditional data of these strategies is something that directly affects two generations: Centuries ი Millennium, And today they represent 50% of the active population. “

To this we must add the importance of digitalization during the credit process, because speed is an inappropriate condition for attracting the attention of most young people. In this regard, Equifax is investing $ 1.5 billion in a process that began in 2018 and will end this year. “This is a company-wide project, but it will allow Argentina to have access to global solutions and therefore offer first-class services,” Jones said.

What challenges has Equifax found around digitalization? “We have to support change A set of minds. Prior to the pandemic, it was difficult to convince banks to switch to the system CloudBut the Covid-19 crisis has helped accelerate all of this, with many banks becoming partner “Digital for its users,” said the president.

Who gave the loan

The frequent complaints that are heard in the conversations of Argentines are the lack of credit. It does not matter if it is a small business or a small company, a large company or an individual who needs a personal loan. Obtaining funding is usually a difficult task. However, Jones’s gaze brings a different perspective. “It is true that loans are expensive in the country, but they exist as a product. Banks want to lend and are working to find better Scope Their clients and could develop more tailored profiles for each possible client, ”he says.

At this point another issue arises that has to do with the present and with banks and interconnectedness Fintexes. Although the former is regulated by the BCRA, the latter is more risky to win over users and requires both sides to have clear rules of the game.

“Ultimately, they have the same goal: they want to get into the non-traditional segments, so it is good that this coexistence, which is already happening, continues. They all want to help the market exist with more credit, they want to make better use of alternative data and they want to borrow money. That’s what we’re working on today to make everyone learn to better segment informationJones thinks.

To understand how important a realistic map of each potential customer’s terms and needs is, just look at the numbers. 60% of the population in Latin America does not have access to credit, and it seems that 42% in Argentina without funding is a not-so-humiliating number. But this is not the case because the market needs to be more mature because, for example, we are the country where the most data is available about the population, its habits and consumption. “This means that more than 13 million Argentines are under the age of majority who have not reached adulthood. For example, in the last 4 years, 1,800,000 people in the country had their first loans. However, macroeconomic conditions (such as inflation) mean that people do not even come close to the subjects to see what options they have, ”Jones added.

“In addition, we must take into account that this 42% mainly belongs to the population, which was previously out of credit. In a country with so much informality, it is a growth barrier for citizens and families. Those who already have access to funding are already over-supplied, we need to reach out to others. And do not forget that loans are the engine of the economy“- explains the director.

According to Equifax numbers, by approaching these alternative sources of information and using big data, the credit market can grow by 10% per year in the region. In Argentina, while work is underway to open our eyes, this will be difficult to achieve because it is first and foremost necessary to clean up the economic performance of our economy.

Population segmentation is a key point of market profit because it allows us to better understand what each needs. But there is another factor that can not be missed: financial education.

“This is the engine of real inclusion. We have been working with Junior Achievement and will also be launching online campaigns to reach a wider audience. We are ready to apply to different states or administrations to support our point of view, “Jones assured.