was presented a update of the Consumer Credit Directive by the Spanish Association of Fintech and Insurtech (AEFI)collected in the Online Lending White Paper. An adaptation to the Spanish market is sought to ensure the growth of the sector.
Within the document there are some measures that should be adopted with agility for Lending Online. Between them, Adherence to the Risk Information Center of the Bank of Spain (CIRBE) stands out..
The AEFI document has been prepared in collaboration with CMS Albiñana & Suárez de Lezo, the sponsorship of Equifax, Metlife, Electronic Identification, Creditea as well as the support of Bip Consulting and Political Intelligence,
It is limited that online credit should move to loans of reduced amounts and shorter terms than conventional entities. The objective is to seek greater and faster accessibility to these loans.
This is a sector that is growing in importance as an alternative source to conventional financing. Online Lending is positioned as one of the most important elements for the Spanish FinTech segment.
This financing model has generated various business models through new marketing and sales processes. Despite everything, there are significant barriers to the evolution of this segment. AEFI has collected in a document the measures that must be improved to adapt to the needs of consumers and the market.
The following points stand out from AEFI:
- Advance in the harmonization and homogenization of the market and of the legislation in the EU, eliminating barriers that suppose a limitation to the freedom of the market
- The inclusion of a typification of online consumer credit products in the LCCC (Law of Consumer Credit Contracts)
- Incorporate online consumer credit institutions in the scope of application of Circular 1/2010, so that they can report on the average rates applied to their products, different from those offered by credit institutions
- Promote the obligation to consult the EFFECTIVE file (Exclusions for Addictive Behaviors and Games of Chance) before granting any credit.
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