PERU Trends and Developments Contributed by: Andrés Kuan-Veng and Luis Ernesto Marín, Rubio Leguía Normand
Securitisation of credit portfolios Securitisation trusts continue to be a key tool in financial markets to transform credit portfo - lios into tradable financial instruments, offering significant advantages to the transferring entity (particularly financial system companies). This technique, traditionally used by banks and other financial institutions, is evolving to incor - porate new players such as fintech companies, which are leveraging its flexibility to innovate financing models. Transfer of credit portfolios to securitisation trusts by financial system companies For financial system companies, transferring credit portfolios to securitisation trusts is a well- established practice that allows these institu - tions to convert assets into liquid resources. Through this structure, financial entities transfer a portfolio of credits (such as mortgages, con - sumer loans or vehicle loans) to a trust, which subsequently issues securities backed by the income flows of that portfolio. Currently, various banking institutions and micro - finance organisations use securitisation trusts as a mechanism to transfer credit portfolios to a special-purpose trust. Securities issued from this trust are then offered (via public or private offerings) to a range of investors. This mechanism enables financial system com - panies to improve liquidity, diversify risk (by limit - ing exposure to the credit risk associated with the securitised portfolio) and optimise regulatory capital. By removing the assets from their bal - ance sheets, these companies enhance capital ratios and meet other regulatory requirements more effectively.
Increased participation of fintech in securitisation processes
Fintech companies are playing an increasingly significant role in Peru’s financial market, with one of their main areas of innovation being secu - ritisation processes. These companies – particu - larly those operating in lending and factoring verticals – are using securitisation to structure their asset portfolios and offer attractive financial instruments to investors. This approach allows fintechs to enhance their access to funding, diversify risk and increase operational liquidity. For companies in the lending vertical, many fin - techs use securitisation trusts to secure funding from investors, optimising their business model and ensuring growth. This structure provides lending-focused fintechs with greater liquidity within a highly specialised financing framework. In the case of factoring platforms, the securitisa - tion of commercial invoices has become a key tool for quickly monetising income flows. This model also benefits investors, who gain access to instruments backed by tangible assets with competitive returns. Furthermore, the growing interest in alternative financing is driving fintechs to explore new ways to structure securitised instruments, including consumer credit portfo - lios and other recurring income flows.
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