Pawn shops in Greece: From the “alms bank” to the Italians of ProntoPegno

The void left by the state-owned pawnshop was seen as an opportunity by the Italian company ProntoPegno, to make its debut in the Greek market and its first step outside of Italy.

The subsidiary of the Italian financial group Banca Sistema, which specializes in the commercial receivables market, opened its first pawn shop in Athens, on Solonos Street, in a former National Bank branch, a month ago – and specifically on 18 October.

After the demise of the state-owned pawnshop, which started as an “alms bank” in 1934 (it was operating under the Postal Savings Bank, with two branches, in Athens, Sofokleous 2 and in Thessaloniki, Aigiou 104), in a very fragmented and special market , where more than 420 pawnshops operate, the Italians argue that they are turning the tables, adopting good practices, security of transactions and guarantees to those who choose this alternative way of microcredit.

Expansion plan

Highlighting the low interest rate (2% per month) as an asset while the usual rate is 10%, ProntoPegno intends to take advantage even of the need for safe keeping of valuables hence its plans include expansion to Mykonos, as noted by company executives to OT.

Overall, the Italians aim to open at least three branches in the Greek market, with Thessaloniki and Piraeus as the first stops.

The Italian pawnbroking company started operating in 2016 in Milan and today has a network of 13 branches throughout Italy, with pawned assets reaching €100 million. In fact, the Banca Sistema group recently also acquired the Art-Rite auction house.

How it works

Company expert appraisers appraise the valuables in front of the customer completely free of charge. The customer is always free to accept or reject the offer without any obligation or charge.

The disbursement amount is based on the value of the valuable pawned item and the duration is flexible, from one month to 12, renewable for up to 36 months.

Customers sign a contract and immediately receive the agreed amount of money, leaving their assets (gold, silver, designer watches, jewelry) as collateral and in a safe place, which they will be able to redeem at any time according to the schedule and terms agreed in the contract.

The first customers

But what are the valuable objects that the Greeks want to pawn?

In the first weeks of the company’s operation in the domestic market, ProntoPegno executives told OT that gold chains dominate, while a customer stood out who gave his wedding ring from his third marriage as a pawn! It is unknown if he will want to repurchase…