FinTech lender TuTasa launches in Argentina
This follows the London-headquartered company successfully completing its first £2m of lending in Uruguay within 12 months.
Peer-to-peer lending is the practice of matching lenders to borrowers through online services instead of going through financial institutions.
“We are delighted at our success in Uruguay,” said TuTasa CEO Marcelo Barreneche.
“The relative immaturity of its lending landscape makes Uruguay an ideal base for growing the business.
“Our expansion into Argentina is the next step in achieving our goal of lending across all of Latin America.”
The company provides consumer loans at lower rates than local financial institutions, which lend at an average 65 per cent APR, giving borrowers a cheaper solution.
With an average loan value of £750, and an average duration of 20 months, the company is securing lenders net annualised yields in excess of 17 per cent.
“The performance of our loans continues to strengthen,” said Barreneche.
“The yields we can offer to lenders on our platform are up to five times the yields obtained from UK or US-focused P2P lending platforms.
“Risks are managed through diversification of countries and currencies.”
The company has made an application to the FCA to allow UK lenders to lend aboard.
“This will be a game-changer, as UK lenders are provided with one account to lend in multiple countries,” Barreneche continued.
“Our application to the FCA reinforces our belief that in the post-Brexit environment, the UK’s FinTech experience will continue to be a critical ingredient in maximising opportunities in other countries.”