Financial Sector: What are the Challenges for 2021?

For 2021, some of the financial institutions competing in the Costa Rican market are betting on placing loans for the purchase of homes, consumer loans and business financing.

Monday, February 1, 2021

In Costa Rica, home purchase loans were already showing positive signs at the end of 2020, since in November of last year the amount of the loan portfolio in question reported a 7% year-on-year increase.

You may be interested in "Financial Services: Business Potential in Central America"

In this context competitors such as Banco de Costa Rica, during the first four months of the year plan to execute campaigns focused on stimulating credit for housing, consumption and loans for small and medium enterprises.

Scotiabank is another competitor that already has plans for this year. Maria Jose Acuna, senior manager of retail credit products, told that the entity "... plans to enable attractive conditions for housing credit for the remainder of the first quarter of 2021."

The current market situation presents attractive opportunities to invest in the real estate sector, therefore, Scotiabank decided to adjust its offer to the new conditions to favor customers, Acuna explained.

Because housing loans maintain the priority of payment by customers compared to consumer loans, banks are interested in marketing financial services for the purchase of houses or apartments.

See "What Financial Services Do Consumers Demand?"

According to Joaquin Vargas Zamora, deputy business manager of Grupo Mutual, for 2021 they have set out "... to maintain a balance in the credit portfolio by attending to the needs of the different customer segments and sectors, whether in personal or business banking. We will keep our personal and consumer credit lines open, all within the framework of adequate risk management."

Studies conducted by CentralAmericaData show that between July and October 2020, the number of Costa Rican consumers who expressed their interest in accessing a mortgage refinancing service online increased by 59%. In the case of the number of people in the country exploring options to opt for a commercial loan increased by 38% for the months in question.

¿Busca soluciones de inteligencia comercial para su empresa?

Do you need business solutions for the financial sector? Contact Us

this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423

More on this topic

More People Seek Credit Cards

September 2020

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.

Credits: How do the Rules Change in Costa Rica?

June 2020

Setting a maximum usury rate and preventing clients from getting into debt to the extent of reducing their income below the minimum wage line are some of the changes that have arisen due to the application of the new law that has been in force since June 20.

On June 20, 2020 the Usury Law was published in the scope number 150 to La Gaceta number 147, which establishes the methodology to be used to set the maximum interest rate, from which the crime of usury will be considered to exist, details an official statement.

Private Sector Credit is Slowing Down

June 2018

Up to February 2018, the growth rate of bank loans for trade, services, consumption and housing activities decreased considerably compared to the same period last year.

According to figures from the Central Bank of Costa Rica, between February 2017 and the same month of this year, the annual growth rate of credit granted by the financial system to the private sector fell from 13% to 7%. 

Costa Rica: Loans in Colones Get More Expensive

August 2017

Interest rates on bank loans have increased by between 0.11% and 6.6% in the last year, and those for loans for construction, livestock and commerce, are where the highest increases have been recorded.

Data published by the Central Bank of Costa Rica indicates that in the case of construction loans, interest rates went from around 11% at the beginning of the year to almost 18% last week.