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News Article

Fintonic Offering Credit Lines

By María Fernanda Barría | Mon, 05/31/2021 - 11:15

Banxico has signaled that credit conditions offered to the private sector by traditional banks continue to decline and credit-granting terms have worsened. In an effort to reverse this trend, Fintonic, a financial technology startup, understands the need for credit lines and aims to provide better financial solutions such as commission-free accounts and more favorable financing.

Fintonic was founded in Spain in 2012 by Sergio Chalbaud, Lupina Iturriaga and Aitor Chinchetru and now has extended operations in Mexico and Chile. The startup has more than 900,000 customers using the platform and strives to help users manage their money. The startup allows users to improve their credit profile and offers a unique feature to access various loans, providing them with all types of financial products according to their profile. 

The banking sector has accumulated eight months of contraction regarding credit grants offered to companies registered in 1Q21by BBVA and this trend continues. One of the main reasons why banks do not want to give or extend credit lines is because they want to avoid debt during this period of economic uncertainty, according to the report Mexican Banking Situation elaborated by BBVA

The digital world allows people to understand how financial markets function, which is one of Fintonic's objectives. Companies and individuals have turned to fintech startups to access financial solutions, primarily due to the difficulty for a person to obtain credit, also because of higher interest rates and complications to access to physical banks. 

Fintonic mentions that to request financing, the startup gives their customers a "FinScore," which indicates the user's credit profile that permits access to loan offers provided by several banks integrated within the platform app. This system functions as a customized credit grant with the benefits of a higher approval rate and better interest rates. "In addition to offering information, it also makes it easier for its users to contract financial products under the best conditions. Based on a marketplace format, users can choose from more than 20 banks for their loans. This model offers total transparency to users, as well as the guarantee that they are contracting the best product for each of them." stated Aitor Chinchetru, founder & Co-CEO of Fintonic to MBN.

Fintonic understands that financing allows the development of new projects and creates a support system for enterprises and individuals because it provides the capacity to better respond to financial challenges and helps boosts their economic activities. "Making the right financial decisions will be essential for a family's future:  reducing costs, mitigating the cost of financing, or having access to credit are some of the decisions that will allow families to ensure their future, their education and their health," Chinchretru said. 

The data used in this article was sourced from:  
Banxico, BBVA, Fintonic, MBN
María Fernanda Barría María Fernanda Barría Junior Journalist and Industry Analyst