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Nowadays, credit cards are becoming very popular, but, in fact, taking into account the further behavior of customers, these are classic cash loans. Because 95% of transactions are cash withdrawals from ATMs and bank cash desks. This was announced by the Internet portal Finance.UA, referring to the message of the Deputy Chairman of the Board of Directors for Risks of Delta Bank, Marcin Figlus.
“The risk of such loans is greater than that of a classic cash loan, because this is a card that remains in the hands of the client. And if there is some kind of residue on it, the client can constantly remain in these balances. In a classic cash loan, this risk decreases with each payment, and the client does not have the opportunity to withdraw money yet. Therefore, this loan is more risky for the bank, but, nevertheless, it is a product of the present time, ”said Mr. Figus.
According to Andrey Kaminsky, director of business development at the International Bureau of Credit Histories, credit cards are a specific type of consumer credit.
Its specificity lies in the fact that the client has instant access to the credit resource, he does not need to go to the bank if necessary, fill out an application. A credit card can be used in two ways. The first is to maintain liquidity. When at some point there is not enough money, use it, and then return it. The second is to withdraw the entire amount. In developed countries the first aspect dominates, while in Ukraine the second one prevails. But, nevertheless, the number of people who use it to maintain liquidity is growing.
The greatest risk for banks, according to Kaminsky, is that, unlike a classic loan, where there is a flow of predicted payments, a client can withdraw any amount at any time, and the bank does not know about this amount, the time of its withdrawal.
“The risk of such loans is greater than that of a classic cash loan, because this is a card that remains in the hands of the client. And if there is some kind of residue on it, the client can constantly remain in these balances. In a classic cash loan, this risk decreases with each payment, and the client does not have the opportunity to withdraw money yet. Therefore, this loan is more risky for the bank, but, nevertheless, it is a product of the present time, ”said Mr. Figus.
According to Andrey Kaminsky, director of business development at the International Bureau of Credit Histories, credit cards are a specific type of consumer credit.
Its specificity lies in the fact that the client has instant access to the credit resource, he does not need to go to the bank if necessary, fill out an application. A credit card can be used in two ways. The first is to maintain liquidity. When at some point there is not enough money, use it, and then return it. The second is to withdraw the entire amount. In developed countries the first aspect dominates, while in Ukraine the second one prevails. But, nevertheless, the number of people who use it to maintain liquidity is growing.
The greatest risk for banks, according to Kaminsky, is that, unlike a classic loan, where there is a flow of predicted payments, a client can withdraw any amount at any time, and the bank does not know about this amount, the time of its withdrawal.