Introduction
Belvo, a fintech platform specializing in open finance, and Ualá, a Mexican neobank, have announced a strategic partnership to enhance access to credit using official employment data. This collaboration aims to benefit millions of Mexicans who currently lack traditional credit history.
The Partnership’s Objective
Through this initiative, both financial entities will leverage the verification of employment history and real income of Mexican workers using their Clave Única de Registro de Población (CURP) to assess credit applications. This approach allows Ualá to make immediate decisions without relying on information from credit bureaus.
Potential Impact
- The technology is estimated to reduce credit application rejections by up to 30%, bringing financial opportunities to historically underserved sectors.
- Belvo’s system has achieved a connection rate exceeding 95%, significantly improving approval rates and advancing financial inclusion.
- Over 30 million CURP have been successfully processed using this technology.
Quotes from Key Figures
“Official employment data is a reliable and powerful source that enables us to close the gap in formal credit. Together, we are making financial inclusion a tangible reality for millions of Mexicans,” said Federica Gregorini, General Manager of Belvo in Mexico.
Context and Challenges
Despite this partnership, financial inclusion still faces significant challenges. According to the National Inclusion Finance Survey 2024 by INEGI, although 71.8% of the population has at least one formal financial product, substantial gaps remain, particularly among women and young people.
Ualá’s Recent Developments
Joaquín Domínguez, Ualá’s Regional Vice President of Credit, stated that the alliance with Belvo strengthens their digital credit strategy by providing accurate and real-time information. It also enables them to offer products swiftly, securely, and accessibly to a broad user base previously excluded due to the lack of traditional credit history.
Belvo and Ualá’s Timing
This partnership comes at a crucial time for Ualá, which recently reinforced its financial structure with a $66 million investment as part of the expansion of its Series E round, with participation from Allianz X.
Key Questions and Answers
- What is the partnership between Belvo and Ualá about? This collaboration aims to enhance access to credit for millions of Mexicans without traditional credit history by using official employment data.
- How will this partnership impact credit application rejections? The technology is estimated to reduce credit application rejections by up to 30%.
- What recent developments has Ualá experienced? Ualá recently strengthened its financial structure with a $66 million investment from Allianz X as part of its Series E round expansion.
- What challenges does financial inclusion still face in Mexico? Despite progress, substantial gaps remain in financial inclusion, particularly among women and young people.
