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According to the Central Bank of Argentina (BCRA), most Fintech companies in that country charge rates of over 150% when granting loans. However, from the Chamber that brings together the financial technology companies, they went out to respond to the institution with a statement, which was accessed by Cointelegraph in Spanish.

Argentina: The head of the Banking Association criticized fintech and virtual currencies

Among other things, the statement explained the following:

„In relation to the press release issued (…) by the Central Bank of the Argentine Republic (BCRA), we wish to ratify our commitment and that of our members to the Argentine legislation in force. The operation within the legal framework of our country is one of the conditions we assumed to develop our activities at the time of starting our chamber.

The credit sector represents 25% of our total members. It is made up of companies that respond quickly and efficiently to the needs of a large percentage of the population that does not have access to traditional credit because they do not have the credit history required by traditional banking institutions. In pursuit of financial inclusion, which continues to be a pending issue in the country, Fintech provides solutions to this problem, helping individuals and companies to start, in seconds, building their payment history and, thus, have the possibility to benefit from future operations with lower rates and/or higher amounts or terms, even at banks.

On the other hand, we believe it is appropriate to clarify that the plain and simple comparison of interest rates with their corresponding associated The News Spy does not lead to homogeneous comparisons from which constructive conclusions can be obtained. In fact, it is not possible to analyze the cost of the financing referred to without identifying repayment terms, types of customers (employees in a relationship of dependence, self-employed, mono-employed or SMEs), payment methods and risk segments (determined by previous payment behavior), among many other factors.

We welcome the potential that the BCRA recognizes in our sector to deepen financial inclusion and we continue to promote an area of complementarity. In a scenario with enormous challenges and where credit represents barely 10% of GDP, we can only think of collaboration as a way to attend to the sectors that need credit the most. Not only in the current difficult times, when the focus is on meeting basic needs, but also, in the immediate future, to reactivate the economy through the generation of employment, support for SMEs and the implementation of the productive apparatus as a whole“.

Argentina’s Central Bank seeks to regulate fintech companies

Some details about the Argentine Chamber of Fintech
The Argentine Chamber of Fintech was created just over two years ago by 13 founding companies. Today it groups almost 200 companies. According to the statement, during this short period, more than 10 million Argentines adopted the services of payments, loans, investment management, crypto-currency, insurtech, SME financing, collective financing, digital identity and B2B services.

The Argentine Chamber of Commerce Fintech launched a job exchange

„We evolved as an industry and as a camera. We work on the consolidation of an ecosystem governed by good practices, transparency and the generation of competitive and relevant information. This objective takes time and requires revisions and adjustments, not only according to the context but also in relation to the diversity of businesses that the fintech universe brings together“, they pointed out.