Online loan is a product whose use has grown exponentially as new technologies have evolved, which have been incorporated into the field of finance.
The immediacy, absence of intermediaries and favorable experience of use offered by these companies that are dedicated to lend money online have made it possible that it is increasingly the preferred option by consumers.
The main banking entities have accepted and understood this new model and have launched themselves to participate directly in the game, so that 45% of the Spanish conventional banking already collaborates with these fintech companies in some way; and it is expected that, in the near future, the figure will reach 85%.
It is the most powerful economies that register the highest percentages of users of this type of quick loans. Countries like England, Germany, Sweden, the United States, Norway, Finland or Switzerland are leading the way , in this matter.
These loans are designed for consumption and most people who request them do so for secondary purposes. Buying a car, changing lounge furniture, financing dream vacations … are the main reasons why users turn to these services.
Hence, it is in the high-income economies where these fast loans are most successful online , since the per capita income is higher and the purchasing power of the average population allows embarking on this type of project.
One of the keys for which this financial product is so claimed is that it offers great transparency to the consumer. The credit companies simplify processes and eliminate intermediaries, so that they represent a great attraction for those who claim their services. This has revolutionized a historically conservative, tight and highly regulated industry that has had to adapt to the new times. The traditional bank moves tab to recover the lost ground.
Germany is one of the leading countries in this sector of online loan . The European Central Bank has put in place measures to stimulate the credit market in Europe and the German country has taken it very seriously. So much so that you can find loans with negative interests , in which the bank grants more money than the client ends up returning. The online bank Fidor Bank and the comparator Smava have launched this type of offers, which, however, are two isolated cases.
The new TLTRO II plan, which grants credit with negative interest to banks that increase their net loan volume by 2.5% between 2016 and 2018; the reduction of the cost of money to 0%; or the deposit facility at -0.4 are the measures of the ECB that have succeeded in stoking the credit market for consumption in Europe and, of course, in Spain.
Interest experienced such a sharp decline that forced the intervention of the Bank of Spain, which decreed that interest on a loan could not be lower than those of any reference index. In addition, it requires entities that these interests cover the costs of capital, risk and non-payment.
These measures, which seek to prevent the profit margin of financial institutions from falling so low that they do not meet the demands of investors, have put a brake on the evolution of consumer credit in Spain and, consequently, on online loan. .
In spite of everything, the volume of money lent to households grew spectacularly in Spain throughout 2016. Specifically, during this fiscal year, Spanish financial institutions received 25,356 million; 28.4% more than the previous year and more than double what was lent in 2012, in the middle of the financial crisis. 12,811 million, according to data offered by the Bank of Spain.
These data yield two interesting readings. In the first place, the evolution of the consumer loan market is growing in Europe and Spain, which also includes the market for fast loans, which are increasingly gaining ground to the traditional ones . Secondly, the greater interventionism of the competent financial and governmental entities causes that, in this sector, Spain will be several years behind other countries with more powerful economies.
Nations such as the United States, the United Kingdom or Switzerland have smoothed regulations, which has encouraged the creation of hundreds of fintech companies that are dedicated to lend money online. The new platforms of
E-lending or fast online loans allow consumers to tailor products, control their personal information, have ease in terms of amounts and payment dates, not be chained to permanent contracts and enjoy greater transparency with respect to the conditions.
In these countries, the consumption of fast credits has become a very common practice. The evolution of technology and all the advantages that this has entailed, the incentive measures of the European Central Bank and its national governments and the facilities offered by companies engaged in this activity have led to an increase in their consumption. throughout the last years.
In the case of Spain, its growth is moderate, although there has been a considerable increase in the money that financial entities lend to households. This allows the forecasts of experts to be very promising, so it is expected that, in the coming years, in which economic growth will be the predominant note, the evolution of online loan for consumption will advance by leaps and bounds and Spain equates with other European powers, in which the use of these financial products is the order of the day among the population that wants quick access to credit.