ID Finance, the fintech company operating in Europe and Latin America, saw revenue of $49 million in 2018. This represents a growth of 236% for the business. The data science, credit scoring and digital finance company is now planning to roll out new technology-powered financial products as it seeks to capitalise on the rapidly growing fintech market in Latam, where it saw revenue growth of 403% in 2018.
ID Finance – which now focuses on Spain, Brazil and Mexico in the Latam region– uses both traditional and alternative sources of data to improve access to competitive financial services and help customers build their credit profile. The company is headquartered in Barcelona, employing over 400 people.
The company is enjoying particularly strong growth in Latam, one of the world’s fastest growing markets for fintech adoption thanks to high mobile penetration and a sizeable underbanked population – according to the World Bank 61% of Mexico’s population is excluded from the traditional banking system, while 40% of Brazil’s 207 million population is blacklisted. The company now has 141 employees in Latam.
“We’re at a pivotal moment for fintech in Latin America,” comments Boris Batine, co-founder and CEO at ID Finance. “These countries have been characterised by low competition and very high underbanked populations. For the young, tech-savvy generation, which are largely excluded from traditional financial products, there is an enormous opportunity for fintechs.”
ID Finance has a rapidly growing customer base with around 20,000 new users each week and a 90% customer retention rate. Its proprietary risk management system uses machine learning and advanced data science techniques to improve access to financial services. It is also leveraging emerging technologies such as behavioural biometrics and AI-based fraud scoring to reduce non-performing loans.
“We are happy with our progress so far and are now planning aggressive expansion through diversification into additional lending products, money transfers, credit monitoring and financial literacy tools. We plan to increase loan issuance sixfold this year in Latam, as well as improve brand awareness,” continues Boris Batine, co-founder and CEO at ID Finance.
According to Goldman Sachs, Brazil has an estimated revenue pool of $24 billion for fintech companies over the next 10 years, with payments, lending and personal finance the most promising segments. Meanwhile, Finnovista, a fintech startup accelerator, has predicted that fintechs could take up to 30 per cent of the Mexican banking market over the next decade.
Great news – the currency conversion fee has been reduced for MXN loans
At the beginning of April, ID Finance launched Mexico-issued short-term loans. Now, investing in loans listed in the Mexican peso (MXN) is even more easy, as we are happy to announce the currency conversion fee from Euro (EUR) to MXN has been reduced to 1.25% one way. This means you can get higher net annual returns on your investment. We hope you enjoy this new rate. Currently, there are loans available with an 18% annual return rate in MXN from ID Finance and Credilikeme. We expect new loan originators from Mexico to be added soon. Check loans available here.