Between July and October 2020, the number of people in El Salvador exploring mortgage options online increased by 18%, and the number of Costa Rican consumers looking to buy credit cards decreased by 60%.
CentralAmericaData's interactive platform Consumer Insights monitors in real time the changes in consumer habits in all markets in the region and in other Latin American countries, with fundamental information to understand their behavior, new trends and anticipate eventual changes in their purchase patterns.
In the last few months, interest in credit cards has been increasing in the digital environment, a rise that is mainly explained by the behavior of consumers in Panama, Honduras, El Salvador and Costa Rica.
Through a system monitoring changes in consumer interests and preferences in Central American countries in real time, developed by CentralAmericaData, it is possible to project short and long term demand trends for the different products, sectors and markets operating in the region.
In the countries of the region, more than 8 million people are looking for credit on the Internet. Of this group of consumers, approximately 9% explore options for taking out a student loan.
The interactive information system developed by CentralAmericaData monitors in real time the changes in consumer habits in all markets of the region, with fundamental information to understand the new commercial environment that has emerged in an accelerated manner.
At a regional level, nearly 16 million people are looking to purchase financial services online. Of this group of consumers, approximately 11% are exploring options for acquiring a credit card.
The interactive information system developed by CentralAmericaData, monitors in real time the changes in consumer habits in all markets of the region, with fundamental information to understand the new commercial environment that has emerged in an accelerated manner.
The coronavirus has left an economic impact in several countries. For this reason, some governments are developing exceptional measures to mitigate its effects. For example, the suspension of tax and mortgage payments to lessen the economic pressure on small businesses and households.
In the United States, interest rates were reduced to almost zero and a US$700 billion stimulus program was launched in a bid to protect its economy, says Mario Miranda, director of finance at MonederoSMART.
Between December 2017 and March of this year, the number of active credits in the country fell 21%, mainly because of the fall in commercial loans and cards.
Data from the Superintendency of Banks and Other Financial Institutions (Siboif), specify that between December 2017 and March this year the number of loans fell by almost 400 thousand, going from 1.79 million to 1.41 million.
Limiting the fees charged in Costa Rica and establishing a law that defines market limits in Guatemala are part of the attempts being made in the region to regulate the use of credit cards.
A law proposal presented last January before the Legislative Assembly of Costa Rica, aims to regulate the percentage of the commission paid by businesses for credit or debit cards.
As of September, credit granted by the financial system registered a year-on-year increase of 16%, driven by commercial credit and personal loans, which grew by 14% and 15%, respectively.
From a financial report by the Central Bank:
The financial system remains stable as of September. The loan portfolio grew by 15.6 percent year-on-year.The risk indicators continue below the average for the region and the liquidity of the system was above 31 percent. In relation to deposits,an interannual growth of 8.7 percentwasobserved (10.9% in September 2016).Finally, the indicators on profitability, solvency and capital have been found to be stable throughout the year.
The 16% year-on-year growth registered in July in Nicaragua's banking credit portfolio is mainly due to an increase in loans for consumption and industrial activity.
From a report by the Central Bank of Nicaragua:
On September 8, 2017, the Central Bank of Nicaragua (BCN) published its Financial Report for the month of July of this year.
Cash is the most frequently used method of payment, compared to the use of credit cards, debit cards and electronic transfers.
The results of the study prepared by the Central Bank indicate that 95% of individuals and 94% of establishments with economic activities, used cordobas.Only 4% of natural persons and 7% of establishments with economic activities use dollars.
Between 2010 and September 2016 the gross balance of loans granted through credit cards grew by more than 100%, going from $145 million to $340 million.
Figures from the Superintendency of Banks and Other Financial Institutions (SIBOIF) show that the number of loans granted through credit cards rose from 541,000 in 2009 to more than 1 million to September this year.
Between December 2013 and December 2014 loans to cardholders increased by 27% while the number of inhabitants having possessing at least one card reached 800,000.
At the end of 2014 it was reported that 800,000 Nicaraguans who are cardholders have on average two credit cards. In the same period, the banks of the National Financial System approved a total of 810,000 loans with credit cards, and reported that about 45% of all registered purchases were paid for using plastic money.
The increase correlates to an increase in the number of merchants affiliated to credit card systems, the growth of the purchasing power of Nicaraguans and increased bancarisation.
According to a report by the Superintendency of Banks and Other Financial Institutions (Siboif), "... The amount of loans made in the form of credit cards increased by 2.9% inter annually reaching a total of 638.630 loans up to December 2013 equivalent to $227 million (C$5829.4 million). "
The National Institute for the Promotion of Competition has stated that there is an agreement between banks to fix interest rates on credit cards.
The Supreme Court of Justice (CSJ) of Nicaragua annulled the resolutions issued by Procompetencia against the practice, considerer by the watchdog as abusive against consumers.
An article in Laprensa.com review the situation where on one side lies the National Institute for the Promotion of Competition (Procompetencia) and on the other the Association of Private Banks (Asobanp), whose president Juan Carlos Arguello denied that there has been are agreement over rates. He explained that behavior responds to the competition between banks, which "is strong."
Visa has announced it will begin in Guatemala the process of eliminating magnetic stripe cards and replacing them with ones that have chips.
Guatemalan financial institutions are working on building the infrastructure necessary to meet this new technology, said the executive director of Visa Central America, Roger Sanchez. The delivery of the first chip card is scheduled for early next year.