Correspondent Banking: – What are the correspondent banking and how does this type of service to release credit. What are the advantages and conditions offered by representatives of financial institutions? At first, easy access to credit is the main advantage, especially in the lending market that grows every day in Brazil.
With the increase of the capital the disposition of the families, the possibilities of proof of income and the offer of guarantees, are allowing the greater concession of financial products and services to many more people. As a result, the number of bank correspondents, ie intermediaries of bank and financial credit proposals, also grew in the loan market.
The bank correspondent operates in the market representing medium and large financial institutions, are really recognized banks, and usually have as main focus the concession of payroll loans, type of loan intended for retirees, pensioners, civil servants and military of the armed forces. This line of loan offers advantages like interest rates and lower rates since the guarantees offered by the clients are greater. The discount is made directly on the payroll and delinquency has very low rates, which entails little or almost no loss to the bank.
Why do bank correspondents exist?
Well, the answer is simple: banks have difficulty reaching all corners of Brazil, the country is very large and the technology required for the structure of an agency will not always be available in some regions. To fill this gap, there are correspondents and non-bank correspondents. With a simple structure, cheap and financed by themselves, it is possible to have the business itself and reach out to the final borrower. See the article on financial franchises for sale of loans and how to open a credit or financing company?
A correspondent can represent more than one institution at a time and can still work as an agent or financial agent for other correspondents. The class is also represented by ANEPS – National Association of Companies Providing Consumption Services and ABCB – Brazilian Association of Banking Correspondents. As a customer, you should seek information on the suitability of the company, since, despite the prerequisites, many take advantage of the façades to apply blows.
Reliable and dependable bank correspondents
Before closing a contract, try to know the suitability of the company, if it is actually registered and accredited by the institutions. The indication of other clients makes the biggest difference, if you inform about each service provided, what the rates, deadlines, tariffs, etc. It is worth remembering that these agents represent the banks, use their brands, grant loans to the bank, but they are not the banks themselves.
There is an advantage in looking for a bank correspondent and not the bank branch directly: no doubt the agility in the process of evaluating the proposals. With a system linked directly to institutions, depending on the type of credit offered is much faster and easier to get the loan in bank correspondents.
Attention! A bank correspondent will never ask for advance payment to release loan . Another important factor is: do not believe in miraculous proposals, those without consultation with credit protection agencies.
Believe me: 90% of banks do not offer loans or financing to anyone with a dirty name on the market. As with any financial transaction, beware of scams, especially those made by the internet or telephone.