Consumer Lending in Latin America: Is the Sky the Limit?
In spite of significant growth in consumer credit in Latin America, facilitated by growing economies and the easing of interest rates, bank intermediation as a percentage of GDP remains low by international standards. The gap is increasingly being met by retailers and consumer finance companies. The unbanked population is a growing focus of financial institutions in the region, many of which are partnering with retailers, buying up finance companies, and developing alternative brands that differentiate their consumer lending sector from the bank.
In this Strategic Commentary entitled “Consumer Lending in Latin America: Is the Sky the Limit?” Speer & Associates, Inc. (S&A) provides an overview of the consumer lending landscape in Latin America.
