Emerging markets fintech company ID Finance has launched an online lending service in Mexico.
“It is an exciting time to be expanding our footprint in LatAm and we see enormous potential for online lending in Mexico,” cofounder and CEO Boris Batine said. “It is an important step towards becoming the number one alternative lender in the region.”
In a release ID Finance said Mexico’s bank branch coverage is 14 per 100,000, less than half the rate of 33 per 100,000 it is in the United States. Other factors influencing the move include pending regulatory changes, proposed government reforms on financial inclusion, and expected users rates of 91.6 million for active internet and 75.4 million for smart phones by 2021 and 2022 respectively.
“The growth in internet usage and smartphone penetration is creating an enormous opportunity for fintechs,” said Yannick del Ponte, country manager at ID Finance Mexico. “ID Finance’s unique scoring technology gives us a significant advantage over the competition while our Moneyman online lending product will bring much needed simplicity and transparency for consumers here in Mexico.”