Despite the advancement of technology and the increasing use of digital platformscredit in Mexico continues to be excessively expensiveaccording to Doopla, a regulated peer-to-peer lending fintech.
Juan Carlos Flores, founder and CEO of Doopla, said that users pay on average a 63% of interest on consumer loans, in addition to the VAT on interest and commissions.
Expensive credit persists in Mexico despite digital progress #RegisterForFree
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This data was shared during a talk on credit and investment in the digital age organized by the Mexican Association of Specialized Financial Entities (AMFE).
Flores mentioned that the interest rate differential in Mexico is alarming, reaching 60 percentage points. This situation, which he described as a “market distortion”, has not been corrected despite technological development and the implementation of new laws.
Among the reasons why the cost of financing remains high, the CEO of Doopla He pointed out factors such as public policies, the cost of fundingthe difficulty in recovering credits and the high overdue portfolios.
Banks impact high costs
He also pointed out that traditional banks, with robust structures, also influence the persistence of these high costs.
Even some digital fintechs have failed to reduce significantly lower interest rates, as their value proposition focuses on improving the user experiencebut not in reducing credit costs.
In contrast, Doopla offers interest rates ranging from 12% to 34% annuallywith an average rate of 22%. In addition, the fintech plans to grant 6 thousand credits for weddings between 2025 and 2028, a segment that has shown good payment behavior, according to Flores.
(With information from Reforma)
