financial institution Royal Credit has faced several problems, product of the segment to which it is directed, as estimated by the Association of Financial Institutions of Multiple Object in Mexico (Asofom).
At a press conference, Enrique Presburger Cherem, president of the Association, stressed that Real Credit does not belong to Asofom, however, its situation is not alien to the union.
“It is the obligatory question, which was like the spoiled child of non-bank financial companies, and without a doubt it is a strong shock to see him reeling”he highlighted, and asserted that part of the problem is the segment to which it is directed.
“This is not a risk that has to do with financial figure, but with segments, with consumer credit. In a recessionary economy, consumer credit here and in China, in the United States, is the first thing that is hit, consumer credit referred to unsecured credit or credit to buy in stores of retail or with credits that in the end are delivered to individuals quickly”, he explained.
He added that Asofom members are more dedicated to granting loans to Small and Medium Enterprises (SMEs) and not necessarily to consumer loans, however, he emphasized that the impact on consumption is a reflection of the economic weakness seen since shortly before the pandemic, and which was accentuated by the health crisis.
“When you have 3-4 years in a row that the economy does not grow and people lose purchasing power, and that employment does not recover either, these people find it much more difficult to pay the consumer loans they acquired, and obviously the financial ones that are focus on this type of niche are the first hit”, he added, since he considered that the situation of Crédito Real does not respond to mismanagement, but to the current situation.
