Linxie, a company that makes agreements with companies that bring together 200,000 employees, has processed more than 5,000 credit applications and made disbursements in the order of $200,000 (about 760 million pesos).
And the fact is that financial technology start-ups, better known as Fintech, have become increasingly strong in the country. In this regard, Linxe is the first Colombian company of its kind to offer microcredits that are discounted to the payroll for low-income employees, allowing them to improve and expand their financial well-being in the country and in the region.
According to the company, its platform connects to six payroll software that processes more than four million workers, representing 40% of the formal employee market in Colombia.
It may interest you: a href="https://www.infobae.com/america/colombia/2022/04/06/empleadores-tienen-la-obligacion-de-pagar-examenes-ocupacionales-de-sus-empleados/" rel="noopener noreferrer" Employers are required to pay occupational examinations for their employees
Entrepreneurs also commented that they are aware that technology alone does not ensure progress in financial inclusion. This thought has led them to advance efforts to provide financial education to low-income workers.
To support the above, they mentioned a recent study by the Development Bank of Latin America - CAF, according to which, “one of the most important lessons that can be drawn from recent crises is the lack of knowledge and misinformation of a large part of the population on basic issues in economics and finance, which limits their ability to make responsible, conscious and competent decisions”.
In this regard, the company also detailed that Colombia, according to the Global Microscope developed by the Economist Intelligence Unit (EIU), was the country in Latin America that achieved the best results in financial inclusion during the pandemic, above Peru, Uruguay, Argentina, Mexico and Brazil.
Thus, in the medium term, Fintech seeks to close the first half of 2022 with USD1 million in credits disbursed and end the year with 8,000 microcredits placed. Meanwhile, it is taking steps with US investment funds to conclude a US$2 million seed investment round that will allow it to consolidate its operations in Colombia and land in Mexico with a pilot next April.
It is worth mentioning that today, 35.2% of the adult population has at least one credit product in force in the financial system; that is, 12.8 million people, according to the Quarterly Financial Inclusion Report of the Opportunity Banking.
KEEP READING: