Synthesis interesting article by Ruben RAMALLO in iProfesional.com
Argentines take hold of all that are to hedge against inflation. And this consumption boom led to a record of personal loans and payments with plastic. The first option is less practical than the second. Is it justified the greatest "rigmarole" in terms of cost savings?
"card or a bank loan?: The middle class wants to know what is cheaper
The consumption boom that has been recorded since early this year in personal loans and credit cards to its main allies.
And it seems that "this romance was continue in the remainder of 2010.
The main business of clothing and appliances chains know that in addition to the many actions that unfold through credit cards, offering a signature loan is another key factor in increasing their volume of sales.
This is reflected in the balances of banks.
The latest figures released by the Central Bank indicate that by late May, the volume of personal loans rose to a record, to settle at $ 33.000 million. Beyond
inflationary environment, which makes larger amounts to be requested to raise prices of the products you wish to acquire, the graph can see how the Argentines began to demand more credit just noticed a picture "clearer."
Indeed, during the first half of last year the global crisis and the local stagnation got really scared. And that was to avoid incurring more debt. However, once those fears began to dissipate, since the second half, the volume of credit did nothing to climb up today.
In the case of loans, another factor that had a huge impact was the sharp reduction in interest rates.
* They played their peak in the first quarter 2009, when the financing cost averaged 37.5 percent.
* Then began a process of steady decline that lasted until May of this year, the month in which were stationed at the 31 percent average.
"The rate cut was recorded in the last months of 2009 and early 2010 led to a strong recovery," said Erika Valdizan analyst Macro.
Furthermore, this greening of the activity was also favored by other "anabolic" campaigns by the various banks, which began to promote personal loans with fixed rates and preferential quotas.
Card " or personal loan?
Beyond the furor generated by the World Cup in the supply of LCD, Argentines frequently raised the question of whether to use the card or to borrow money in case you want to make a specific purchase of a relative amount high.
From the operational point of view it is clear that "card" is much more convenient than resorting to the bank and fill out the application to access a personal loan.
Is that more difficulty is offset by savings in the cost of financing? Figures showing the entities, for both, indicate that it is not.
"is generally much more cheap and practical that a personal card, "said Marco Zarate, CEO of ZonaBancos.com.
"The only restriction is the limit that applies to the owner of plastic, beyond the accumulating burden that can come from previous months," he said.
* In the case of cards, the total financial cost (CFT) oscillations for the main banks in the system-from a minimum of 36% and a maximum of 54 percent.
* As in the case of loans, they move in a range that goes from 40% to 79 percent.
They are striking cases of HSBC and Santander, which paid almost 14 points for a personal loan to pay those who already have accounts in the entity in respect of customers in general.
For other banks the situation is opposite. The comparative
the total financial cost (TFC) vs card. loans, it appears that the Macro and the nation offer the best value in terms of gap.
For other institutions the personal loan is between 12 and 25 points more expensive than plastic.
Argentines borrow much
The amounts that, on average, the company claims are relatively narrow:
* Almost one in four transactions, not exceeding 10,000 pesos.
* Meanwhile, 40% of credits granted is less than 15,000 pesos.
One thing to remember is that the less expensive it is requested the cost of borrowing.
For example, for amounts lower interest rates comfortably exceed 40% while for the media segment, around 25 percent.
And for amounts over $ 100,000 was reduced to 15 percent.
What fate have loans?
According to Paul Etcheverry, manager Supervielle Bank, "the impetus comes from the more equipment than Argentina to the home."
Since the government has argued that has contributed much defensiveness of much of the consumption society looking forward to beat inflation.
"While there was strong growth in credit card sales, for the purchase of LCD and notebook, both the technology category such as home improvement had a strong participation among the most preferred destinations," said Etcheverry.
"We understand that there is an improvement in consumer sentiment for the World Cup and the Bicentennial, which combined with the best prospects on a personal level, led the trend to increase the volume of purchases," said the manager of Supervielle.
Loans, the middle class again
counters
"Currently the demand for loans is growing steadily. In our institution, if we take this term as a reference point, the increase was almost 40% compared with the first four months of 2009, "said Valdizan.
From Banco Patagonia also coincided with the marked recovery. And they said that this trend deepened in the last 5 months. "For the bank, the increase from January to May was the order of 25%," stressed the source consulted.
From HSBC agreed in stating that "the market has been a significant increase in demand, so far this year. "
Meanwhile, from the Galicia Bank stated: "Comparing the first semester 2010-2009, the amounts awarded have doubled and personal loan demand continues to grow at a very high rate."
Which banks are the most pay? When
identify the entities that channel the greatest amount of personal loans demanded by the population, we see that the Macro is comfortably leading the ranking with a stock of $ 4,200 million.
This volume absorbed no less than about 14% of the market. A step below are located the province (9.7%) Santander (8.6%) and nation (7.7 percent).
These four entities absorb no less than 40% of the market.
As shown, the polarization in this area is very strong, considering that half of the loans comes from only 6 institutions.
Within the "top ten" appears "blocked" as is Compañía Financiera Argentina, with $ 1,140 million is ranked eighth.
This entity is one that shows the second highest annual increase (almost 50%), exceeded only by the Supervielle, increasing its portfolio by 76 percent.
Such information is not lost on the eyes great players and this is how it was recently announced the sale of the Galicia Financial Company.
Cards Today
circulating in the country nearly 28 million plastic. Of that total, about 20 million for financial institutions and the rest to private broadcasters.
Considering the overall figure, this implies a tenure of nearly seven cards for every ten people. Now if we consider the economically active population, which is ultimately the frequently-used this relationship is increased to 1.5 plastic per person.
Of this total must be reduced by a percentage generally around 20%, corresponding to cards that do not register movements, so that operations would be about 22 million, ie one of every two people would use on a daily basis. As
iProfesional.com realized, the annual turnover of different plastics ($ 90,000 million) representing 25% of total private consumption and 14% of Gross Domestic Product.
1. Leadership as billing: Visa keeps, with a market share of 49%. Are located far below American Express, MasterCard and regional cards.
With respect to banks, the top ranking of the top, Santander (3.7 million plastic) followed by Galicia (2.8 million), BBVA (1.5 million) and Macro (1.4 million).
2. Leadership as cards issued: the nearly 27.8 million, about 43% is Visa. Long-range follow Orange and MasterCard, with just over 9 percent.
From the standpoint of the amount financed, the balance increased by 30% in a year and already has overcome the $ 20,000 million. Perspectives
In a context in which estimates of consumer growth for 2010 remains positive for private consulting firms, it appears that the upward trend will remain in the remainder of the year.
"In 2010 we anticipate that consumption will grow in line with GDP. We do not believe that inflation is a brake, because the price increase is more pronounced in food and beverages, "said Gonzalo Bernat, an economist at Finsoport
" Access to major sources of funding and improvements in benefit rates, mainly to house appliances. Also allow short-term loans to recover the dynamics of consumption, because you need to accelerate and sustain the pace of sales, "stressed from Deloitte. The Patagonia
view that "the outlook for the coming months to keep the curves pass growth with maximum loans during September, October and November, as has occurred in recent years. "
"This has been fueled by a trend towards lower rates during the past few months," he said Etcheverry.
"Thinking about the outlook for the remainder of 2010 will be counted as favorable high liquidity of banks and high propensity to consume, "they said from the HSBC.
From Galicia concluded by saying that" the outlook is good, since we believe that demand will continue to grow, compared with that from the supply market is active and interesting proposals.
"card or a bank loan?: The middle class wants to know what is cheaper
The consumption boom that has been recorded since early this year in personal loans and credit cards to its main allies.
And it seems that "this romance was continue in the remainder of 2010.
The main business of clothing and appliances chains know that in addition to the many actions that unfold through credit cards, offering a signature loan is another key factor in increasing their volume of sales.
This is reflected in the balances of banks.
The latest figures released by the Central Bank indicate that by late May, the volume of personal loans rose to a record, to settle at $ 33.000 million. Beyond
inflationary environment, which makes larger amounts to be requested to raise prices of the products you wish to acquire, the graph can see how the Argentines began to demand more credit just noticed a picture "clearer."
Indeed, during the first half of last year the global crisis and the local stagnation got really scared. And that was to avoid incurring more debt. However, once those fears began to dissipate, since the second half, the volume of credit did nothing to climb up today.
In the case of loans, another factor that had a huge impact was the sharp reduction in interest rates.
* They played their peak in the first quarter 2009, when the financing cost averaged 37.5 percent.
* Then began a process of steady decline that lasted until May of this year, the month in which were stationed at the 31 percent average.
"The rate cut was recorded in the last months of 2009 and early 2010 led to a strong recovery," said Erika Valdizan analyst Macro.
Furthermore, this greening of the activity was also favored by other "anabolic" campaigns by the various banks, which began to promote personal loans with fixed rates and preferential quotas.
Card " or personal loan?
Beyond the furor generated by the World Cup in the supply of LCD, Argentines frequently raised the question of whether to use the card or to borrow money in case you want to make a specific purchase of a relative amount high.
From the operational point of view it is clear that "card" is much more convenient than resorting to the bank and fill out the application to access a personal loan.
Is that more difficulty is offset by savings in the cost of financing? Figures showing the entities, for both, indicate that it is not.
"is generally much more cheap and practical that a personal card, "said Marco Zarate, CEO of ZonaBancos.com.
"The only restriction is the limit that applies to the owner of plastic, beyond the accumulating burden that can come from previous months," he said.
* In the case of cards, the total financial cost (CFT) oscillations for the main banks in the system-from a minimum of 36% and a maximum of 54 percent.
* As in the case of loans, they move in a range that goes from 40% to 79 percent.
They are striking cases of HSBC and Santander, which paid almost 14 points for a personal loan to pay those who already have accounts in the entity in respect of customers in general.
For other banks the situation is opposite. The comparative
the total financial cost (TFC) vs card. loans, it appears that the Macro and the nation offer the best value in terms of gap.
For other institutions the personal loan is between 12 and 25 points more expensive than plastic.
Argentines borrow much
The amounts that, on average, the company claims are relatively narrow:
* Almost one in four transactions, not exceeding 10,000 pesos.
* Meanwhile, 40% of credits granted is less than 15,000 pesos.
One thing to remember is that the less expensive it is requested the cost of borrowing.
For example, for amounts lower interest rates comfortably exceed 40% while for the media segment, around 25 percent.
And for amounts over $ 100,000 was reduced to 15 percent.
What fate have loans?
According to Paul Etcheverry, manager Supervielle Bank, "the impetus comes from the more equipment than Argentina to the home."
Since the government has argued that has contributed much defensiveness of much of the consumption society looking forward to beat inflation.
"While there was strong growth in credit card sales, for the purchase of LCD and notebook, both the technology category such as home improvement had a strong participation among the most preferred destinations," said Etcheverry.
"We understand that there is an improvement in consumer sentiment for the World Cup and the Bicentennial, which combined with the best prospects on a personal level, led the trend to increase the volume of purchases," said the manager of Supervielle.
Loans, the middle class again
counters
"Currently the demand for loans is growing steadily. In our institution, if we take this term as a reference point, the increase was almost 40% compared with the first four months of 2009, "said Valdizan.
From Banco Patagonia also coincided with the marked recovery. And they said that this trend deepened in the last 5 months. "For the bank, the increase from January to May was the order of 25%," stressed the source consulted.
From HSBC agreed in stating that "the market has been a significant increase in demand, so far this year. "
Meanwhile, from the Galicia Bank stated: "Comparing the first semester 2010-2009, the amounts awarded have doubled and personal loan demand continues to grow at a very high rate."
Which banks are the most pay? When
identify the entities that channel the greatest amount of personal loans demanded by the population, we see that the Macro is comfortably leading the ranking with a stock of $ 4,200 million.
This volume absorbed no less than about 14% of the market. A step below are located the province (9.7%) Santander (8.6%) and nation (7.7 percent).
These four entities absorb no less than 40% of the market.
As shown, the polarization in this area is very strong, considering that half of the loans comes from only 6 institutions.
Within the "top ten" appears "blocked" as is Compañía Financiera Argentina, with $ 1,140 million is ranked eighth.
This entity is one that shows the second highest annual increase (almost 50%), exceeded only by the Supervielle, increasing its portfolio by 76 percent.
Such information is not lost on the eyes great players and this is how it was recently announced the sale of the Galicia Financial Company.
Cards Today
circulating in the country nearly 28 million plastic. Of that total, about 20 million for financial institutions and the rest to private broadcasters.
Considering the overall figure, this implies a tenure of nearly seven cards for every ten people. Now if we consider the economically active population, which is ultimately the frequently-used this relationship is increased to 1.5 plastic per person.
Of this total must be reduced by a percentage generally around 20%, corresponding to cards that do not register movements, so that operations would be about 22 million, ie one of every two people would use on a daily basis. As
iProfesional.com realized, the annual turnover of different plastics ($ 90,000 million) representing 25% of total private consumption and 14% of Gross Domestic Product.
1. Leadership as billing: Visa keeps, with a market share of 49%. Are located far below American Express, MasterCard and regional cards.
With respect to banks, the top ranking of the top, Santander (3.7 million plastic) followed by Galicia (2.8 million), BBVA (1.5 million) and Macro (1.4 million).
2. Leadership as cards issued: the nearly 27.8 million, about 43% is Visa. Long-range follow Orange and MasterCard, with just over 9 percent.
From the standpoint of the amount financed, the balance increased by 30% in a year and already has overcome the $ 20,000 million. Perspectives
In a context in which estimates of consumer growth for 2010 remains positive for private consulting firms, it appears that the upward trend will remain in the remainder of the year.
"In 2010 we anticipate that consumption will grow in line with GDP. We do not believe that inflation is a brake, because the price increase is more pronounced in food and beverages, "said Gonzalo Bernat, an economist at Finsoport
" Access to major sources of funding and improvements in benefit rates, mainly to house appliances. Also allow short-term loans to recover the dynamics of consumption, because you need to accelerate and sustain the pace of sales, "stressed from Deloitte. The Patagonia
view that "the outlook for the coming months to keep the curves pass growth with maximum loans during September, October and November, as has occurred in recent years. "
"This has been fueled by a trend towards lower rates during the past few months," he said Etcheverry.
"Thinking about the outlook for the remainder of 2010 will be counted as favorable high liquidity of banks and high propensity to consume, "they said from the HSBC.
From Galicia concluded by saying that" the outlook is good, since we believe that demand will continue to grow, compared with that from the supply market is active and interesting proposals.
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