The International Finance Corporation (IFC), part of the World Bank Group, has formed a strategic partnership with Chilean fintech Galgo, a specialist in digital vehicle sales and financing in Latin America. This agreement aims to expand and strengthen credit opportunities for society’s most vulnerable sectors, including migrants and those previously without access to banking services.
Initially founded in 2018 as Migrante, Galgo was launched to support the economic integration of Venezuelan migrants in Chile. The company has since evolved to provide credit to over 45,000 individuals in four years, extending its operations to Peru, Colombia, and Mexico. Currently, it focuses on vehicle sales and financing, optimizing its service to be more agile, flexible, and digital.
The collaboration with the IFC involves working closely to identify and prioritize the needs of groups traditionally marginalized by conventional banking systems. This includes migrants, individuals at the economic base of the pyramid, informal sector workers, and clients with limited or non-existent credit histories.
The IFC will offer specialized advice on developing risk models tailored to the low-income population, as well as establishing action plans for the continuous improvement of Galgo’s financial products in the short, medium, and long term. While initially implemented in Peru, the agreement is designed to extend to other countries where Galgo operates.
Diego Fleischmann, CEO of Galgo, expressed his excitement about collaborating with the World Bank’s IFC. According to Fleischmann, this agreement represents a significant first step towards exploring regional funding options for Galgo’s credit activities in Latin America. The ultimate goal is to contribute to the development and progress of thousands of families in the region, providing vehicles that enhance their quality of life.
“We are delighted with this agreement with the World Bank’s IFC, as it is the first step towards eventually exploring regional funding possibilities for our credit operations in Latin America, and thus, contributing to the development and progress of thousands of families in the countries we operate through a vehicle that improves their quality of life.”
This partnership between the IFC and Galgo aims not only to promote broader financial inclusion but also to drive positive change in the lives of many individuals and families in Latin America. With IFC’s support, Galgo is well-positioned to expand its impact and reach a broader segment of the population, providing access to financial solutions previously beyond its reach.