Latest news with #creditaccess
Entrepreneur
10 hours ago
- Business
- Entrepreneur
Poonawalla Fincorp Launches Digital-First Business Loan Product for MSMEs
The company aims to simplify credit access for MSMEs through a straight through processing (STP) model, eliminating the need for branch visits You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Poonawalla Fincorp Limited (PFL), a non-banking financial company under the Cyrus Poonawalla Group, has launched what it calls an industry-first digital loan offering tailored for micro, small, and medium enterprises (MSMEs). Named 'Business Loan 24/7', the product is designed to provide instant approval through a fully digital process, underpinned by an advanced risk-first assessment model. According to a press release issued by the company, the new product aims to simplify credit access for MSMEs through a straight through processing (STP) model. This eliminates the need for branch visits or physical paperwork, enabling faster and more secure access to funding. The process uses digitized data sourced directly from platforms such as GST systems, credit bureaus, and account aggregators to evaluate creditworthiness with more nuance than conventional methods. PFL's approach leverages India's maturing digital infrastructure to fine-tune risk analysis while maintaining a responsible credit allocation framework. The digital model integrates analytics and verification tools to streamline onboarding and reduce turnaround time—two longstanding bottlenecks in MSME financing. Mr. Arvind Kapil, managing director and CEO of Poonawalla Fincorp, framed the launch as a response to shifting credit dynamics in the country's evolving economy. "We believe that with India's $4 trillion economy, MSMEs will be one of the most robust credit growth segments over the next 10 years, and our assumptions are based on India's strong financial infrastructure—credit bureau data, GST information, account aggregators, and strong risk analytics," he stated. "This product, which we will gradually build into the portfolio in a sensible, risk-calibrated manner, will be an industry first, and we believe it will be a very strong and convenient offering for all good-quality MSMEs." The company is targeting enterprises in Tier I, II, and III cities, particularly those engaged in retail, services, manufacturing, and trade. By positioning Business Loan 24/7 as a scalable digital solution, PFL aims to attract what it calls the "first right of refusal" on quality MSME borrowers, especially those underserved by traditional lending mechanisms. This launch follows PFL's earlier entry into digital lending for salaried professionals, and the company intends to use similar strategies to build momentum in the MSME segment. It expects the product to evolve over the next four to six quarters into a significant competitive differentiator.
Finextra
4 days ago
- Business
- Finextra
Kiwi raises $7.8 million for serving credit to underbanked Latinos
Kiwi, a fintech company building AI-powered financial tools for underbanked Latinos in the U.S., today announced a $7.8 million Series A equity round. 0 The round was co-led by LIP Ventures and Advent-Morro Equity Partners, with participation from Morro Ventures, Independent Capital, Neer Venture Partners, Invariantes Fund, and others. This brings Kiwi's total equity raised to over $15 million. Founded in 2020 by Mariano Sanz and Alexander Schachter, both originally from the Dominican Republic, Kiwi was born from a clear mission: to expand credit access for underserved Latino communities across the United States. Since their launch, the platform has serviced more than 100,000 users, many of whom are building credit histories and accessing formal financial services for the first time. Kiwi experienced over 300% revenue growth in 2024, maintaining profitability as demand accelerated across key Hispanic markets in the U.S. The Series A funding will further accelerate national expansion, deepen their AI capabilities, and support new products tailored to everyday financial needs. Kiwi was designed to meet the unique needs of Latino immigrants and U.S.-born Latinos underserved by the formal financial system. Its product strategy reflects how these communities manage money in real life: from accessing credit to saving, spending, and staying financially connected. Kiwi's approach follows a proven path seen in emerging markets: solve for credit, build trust, and expand into services that drive long-term impact. The company's proprietary AI models power the full credit lifecycle, from underwriting and fraud prevention to servicing and compliance. This enables a level of automation and personalization rarely seen in the segment. These tools allow Kiwi to deliver a high-touch customer experience with lower risk and greater efficiency than traditional lenders. 'Access to credit is often the biggest barrier for our customers,' said co-founder and CEO Mariano Sanz. 'When you solve that first, you earn the long-term relationship. Our customers don't want just another app. They want someone who sees them, understands them, and helps them thrive in a market where they've been historically overlooked. That's what we're building.' Latinos make up nearly 20% of the U.S. population and contribute more than $4 trillion to the economy annually, yet they remain vastly underserved by the mainstream financial industry. Kiwi is growing their platform specifically for this community, backed by real traction, a committed user base, and a technology that's built to scale trust. Kiwi is a graduate of Parallel18, one of Latin America's leading international startup accelerators, was part of Orlando Bravo's the Bravo Family Foundation, and a 2024 finalist for EY's Entrepreneur of the Year. The company's prior funding included participation from Advent-Morro Equity Partners, Independent Capital, and Altio Capital, and was supported by i80 Group on a $75 million credit facility.
Associated Press
14-05-2025
- Business
- Associated Press
Mastercard: New Paths To Progress: Making Financial Success Accessible for Underbanked Consumers
Mastercard A staggering 36 million North American consumers — 12% of the population — are underbanked, navigating their financial lives with a bank account but without access to essential credit tools like credit cards. Longstanding financial inequities have limited their growth, yet they remain driven, with 66% seeking financial knowledge and 65% looking to financial institutions for solutions. Underbanked consumers are a diverse and dynamic group. They are early adopters of technology, embracing AI, digital finance, and open banking solutions. Mental health is also a priority, with financial stability playing a crucial role in their well-being. 01Building trust is key for underbanked consumers as 65% would like financial institutions to help address financial inequities, yet more than half also feel taken advantage of by the financial system. 02About 85% of underbanked consumers rely on debit cards, a significantly higher rate than the general population, presenting a unique opportunity for financial growth. By helping this underserved group transition to credit, we can facilitate new possibilities for financial access. 03Underbanked individuals carry significant responsibilities. Many have fewer resources that need to stretch farther. Stress and anxiety weigh on them, which is why underbanked consumers prioritize their mental health more than most, and nearly half have a near-term personal goal to improve their mental health (39% higher than the total population). 04The financial uncertainty for some underbanked consumers stems from childhoods of poverty — 64% lived in households of low socioeconomic brackets as children, vs. 46% among the total U.S. However, they are pursuing education and professional growth at rates two times higher than the general population, and two out of three are seeking more financial knowledge to gain control over their personal situation. 05Addressing their needs requires a tailored approach focused on trust, access, usage, health and education. Through our Powering Prosperity framework, we have identified three key personas within the underbanked segment, each with unique aspirations and challenges. Debit products provide an entry point for engagement, while education and personalized financial tools can help bridge gaps in financial literacy and access. The opportunity is clear: By fostering trust and offering targeted solutions, we can empower underbanked consumers to achieve financial stability. Now is the time to reshape financial inclusion and build lasting relationships with this growing audience. White paper New paths to progress: Making financial success accessible for underbanked consumers Recognizing a gap in support for the underbanked, a new Mastercard survey uncovered emerging trends reshaping consumers' lives and the societal context in which they operate. Within this diversity and cultural transformation, we identified subgroups with distinct attitudes, revealing unique potential ready to be unlocked. Read the report Originally published by Mastercard Follow along Mastercard's journey to connect and power an inclusive, digital economy that benefits everyone, everywhere. Visit 3BL Media to see more multimedia and stories from Mastercard
