2020 was a mixed year for consumer lending. COVID-19 has meant that, in general, gross lending slowed down, particularly as mortgages had already started experiencing a slowdown as a result of social unrest towards the end of 2019.
The first case of COVID-19 was seen in the country on 3 March 2020, with a state of emergency declared on 18 March, at which point all borders and non-essential shops were closed. Widespread lockdowns were implemented across the country in line with the impact on each city.
The unique exigencies of 2020 saw structural changes in Chile’s consumer lending market, with the government and regulators required to intervene to support the functioning of the market. September was the month that the long-awaited Financial Portability Law came into force.
During 2020, a host of new fintech players made their mark in delays consumer lending industry. These included start-up companies such as Destacame, Finteual and Fintech, among many others, which have begun offering commercial as well as personal consumer lending.
It came as a surprise to many that there was not a complete and total collapse of Chile’s property market due to the COVID-19 pandemic during 2020. While activity in the market has certainly slowed down as consumers have become worried about committing to substantial, long-term debt and developers have been forced to halt their plans and delay construction projects, at the start of the COVID-19 crisis the Chilean property market was already dealing with substantial and widespread loss of confidence in the economy and resultant consumer hesitancy.
The full extent of the impact and influence of COVID-19 on consumer lending during 2021, 2022 and beyond remains to be seen. While there have been concerns expressed from within and outside the industry regarding the scope for increases in outstanding balance and the difficulties that could be faced maintaining outstanding balance at manageable levels and possible increases in debt delinquency by hard-pressed Chileans, there remain few signs of significant increases in non-performing loans and delinquent debt as stimuli packages and measures introduced by banks and other lenders have managed to help tide consumers over.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Consumer Lending industry in Chile with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Consumer Lending industry in Chile, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Consumer Lending research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page