The new reality will change the form and characteristics of this type of financing.
The entities that provide this type of services have been unsupervised by the Bank of Spain and the CNMV – National Securities Market Commission.
The stay in legal limbo comes to an end.
It is confirmed, there will be a before and after in the fast credit market in Spain. Finally good news arrives for a sector with a very deteriorated image, you can say loud and clear:
“The Far West of fast loans is over”
If the river makes a noise its because water is running
If we analyze the current credit offer of the companies that operate online and compare it with the offer of products available 2 years ago, we will draw the conclusion that most of the products have undergone a metamorphosis and have been transformed into more normal loans and more similar to those of the companies that are under regulation.
The fear of being left out and not being prepared for the new times, has made this quick adaptation quicker.
Spain in the spotlight
Another feature of the new Status Quo is the continuous emergence of new brands and solutions that have worked in other latitudes.
Opportunism plays a key role in the phenomenon of entering in any way and adapting according to the circumstances.
The short term, not only occurred in the time of return of money, but also in diversification strategies.
Spain is one of the few countries in the European Union that does not have a specific regulation for this type of financing, hence, many agents put in the spotlight to operate as soon as possible, since the circumstances are ideal.
First step: high interest and quick return
Starting from the premise “the cheap ends up being expensive”, we will understand much better how the marketing of money works quickly and instantly. The siren songs open impossible possibilities for hundreds of thousands of people to whom the bank gives back day and day also.
Reaching normalcy denied at zero cost seems at least extraordinary for a part of society crushed by an eternal crisis.
Second step: adaptation to conventional loans
Lending money for free, as it sounds, is associated with a ruinous business, even more so if the majority of the public to whom we go has no guarantee of return.
It is not necessary to look for the three feet to the cat to see that something in the equation does not work. If we were looking for long-term profitability, this would only go through recurrence-free the first-but not the next.
In the strategy is the risk, ¿long-term risk?
Obviously not. We must consider that once a brand has positioned itself and has a considerable volume of fixed users, there is no other option but to jump to the next level and this involves reducing the risk, lending only to the profiles that can guarantee the return in conditions and better terms.
From the sociological point of view is a whole transformation, a whole journey from an environment of quicksand to a more stable territory, without frights and with less risk.
War between two worlds: Fast vs traditional
Nowadays it is impossible for something to be fast if it is not digital, and digital is technological.
The common trunk of the online lenders is the new technology, the Bank.
The traditional banking is in continuous technological adaptation, something that brings them real headaches and that is more a philosophical and mental approach.
We are approaching the moment of the confluence between these two worlds, without absolute values.
When will the new regulatory framework come into effect?
From Financial Marketing & Consulting, a leading financial consultancy in Spain, we care about solutions, identify opportunities and take the pulse of the online credit market. From the Atrapacrédito website, users can find the best personalized financing solution.
We can affirm categorically that the new regulation will be operational in the next year 2019. Many agents consider the first half as the most likely period of development and application of the new regulation. The expectation is maximum to be able to give final closure to a strange and atypical situation within the member states of the European Union.