Do not rule out possible measure to take new credits: KPMG

In accordance with KPMG, the contraction of bank credit in 2020 derives from the effects of the fall in the Gross domestic product (START), but it is also a reflection of a year of measure within the market, which is manifested in a decrease in balances both in companies and in consumption.

In an article authored by Ricardo Delfín, lead audit partner in financial services at KPMG In Mexico, it is detailed that, despite this, the need for credit in the country remains latent, but bank penetration rates remain low.

“Although the granting of credit is key in the economic recovery, we must not rule out a possible reaction of measure to take new credits during the year by organizations and individuals,” he highlights.

The article also highlights that the profitability of banks in 2020 was clearly diminished, although their financial indicators are solid.

In this sense, the firm considers that the banks that have better diversified their loans will be positioned to retain their solidity, although an excess of rigidity can be a brake on growth.

Digital transformation has accelerated

KPMG He adds that what is a fact is that the crisis generated by the pandemic has opened up new opportunities, since social distancing has accelerated the digital transformation agenda.

“Many companies reluctant to use digital services have begun to use them, more out of necessity than pleasure, but they have generated a habit,” he says.

In this sense, it points out that banks that manage to invest in a timely manner in digital transformation, and those that offer the best customer experience, will be better positioned in the market.

“Having a solid bank is a good foundation for recovery. Achieving an adequate economic environment and an appetite for investment, as well as advice that provides a growth and recovery strategy, will be key so that the banking system can play a fundamental role in the country’s economic recovery ”, the text emphasizes.