Don't worry, we speak : Español (Spanish), too!
The funds will serve to update its lending platform as well as “whatever comes next.” I’m somewhat paraphrasing but they did say that:
“We’re proud to announce this investment which will allow us to better face any eventuality that’s derived from the current crisis as well as push for the continual innovation of our platform and the acquisition of customers to meet our objective of modernizing SME banking in Mexico,” states Creze co-Founder, Diego Creel.
And by “innovation” the startup intends to update its risk analysis approach so that loan requests can be processed faster and the funds transferred to the business within three days.
Lending fintech finesse for the summer
Lending fintechs have been drawing media attention (us included) within the last couple of months.
Equity capital rounds, debt financing rounds, M&As in various formats—it’s all been done and announced within the same timeframe.
With so much “good news,” does that mean lending fintechs generally have it easy for the next couple of months?
I’d say nay.
It’s not all gumdrops and rainbows
Something all startups and investors seem to agree on is that they want to help businesses face economic uncertainty using technology. They also emphasize that they don’t sideline others the way banks have done.
Most use the “bringing financial inclusion to Latin America, yada, yada, yada” narrative.
Which (in theory) is great.
[wd_hustle id=”InArticleOptin” type=”embedded”/]
But from the borrower’s perspective, I’m concerned with the interest rates fintechs may charge. Moreover, as businesses themselves, startups won’t openly give out loans to just anyone. Even if they have tech on their side to evaluate other factors.
From the lender’s perspective, I don’t think things look too bright for fintechs that provide credit to individuals. Mexican yotepresto.com has acknowledged that given the circumstances it may slow down the number of loans it provides.
Meanwhile, Kueski announced layoffs in April so as to keep operations afloat.
In any case, B2B fintechs that target more mature companies should fair better, as they’re less a risky bet.
Damn, I’m starting to sound like a traditional bank…
Oh well, you either die a hero or see yourself become the villain.
Related articles: Tech and startups from Mexico!