The Alternative Financial Services Association of Latvia unites financial technology, otherwise known as fintech, companies and other organisations operating outside the banking sector and providing financial services to the residents of Latvia.

The mission of the association is to make sure the alternative finance sector in Latvia is responsible and reliable. We aim to have a long-term cooperation with consumers and market monitoring institutions, demonstrating the many positive benefits the sector has to offer for the development of every individual and society as a whole. Due to the development of efficient information technology solutions, financial services provided outside the banking sector are more available, convenient and easy to understand.

The association represents non-bank crediting companies, which issue online consumer loans, mortgage loans and loans secured by transportable property. The association include peer-to-peer lending platforms as well.

PEER-TO-PEER LENDING PLATFORMS

Peer-to-peer lending platform connects investors and borrowers offering to non-bank creditors the opportunity to use a model of mutual loans for the attraction of additional funding, meanwhile offering to investors investment opportunities generating attractive returns.

ONLINE CONSUMER CREDIT

Online consumer credit can be received remotely using internet. A collateral is not neccessary. Larger amounts have a fixed payment schedule, but smaller – to be paid at once. In most cases people use these credits in unexpected life situations when extra funds are needed. Consumer credits are not meant for solving long-term financial problems or other liabilities.

NON-BANK MORTGAGES

Non-bank mortgages are loans for the purchase of real estate property or credits, the repayment of which is secured by a real estate mortgage.

Non-bank mortgages are mainly intended for the purchase, improvement, repair or construction of home, as well as for other major purchases. Maturity date of the credit may vary between a few months and even several decades. Amount of the credit depends on the security and the client’s ability to cover the monthly payment.

CREDIT SECURED ON MOVABLE PROPERTY (PAWNSHOP LOAN)

Credit secured on movable property is a consumer credit. Upon entry into a contract on reception of such a loan, the borrower transfers a certain item as a security for the storage of the lender. Amount of the credit depends on the value of the respective item used as the security.

LEASING SERVICES

Leasing is a financial service where the lessor transfers the right to use a lease object to the lessee in exchange of payments fixed in the contract. A lessor is the owner of the lease object, whereas the lessee is the user of the object. The lease object becomes the property of the lessee after the lease object is fully paid. Frequently leasing services are chosen by clients who plan to purchase a vehicle without postponing the purchase.