Asset-Based Loans: An Almost Untapped Market

Q: How does Creditas help its customers unleash the financial potential of their assets?

A: Creditas was created over 10 years ago in Brazil. We entered the Mexican market two and a half years ago, offering loans. The company started operations by providing asset-based loans. In Latin America, people do not leverage assets like houses and cars as much. In the US, people can use these assets to secure a loan or mortgage and use the money for other purposes.

In Brazil, where we have worked for a longer time, we have built an ecosystem for asset-based loans. People need to see loans as an opportunity to grow. A loan can be used to invest in businesses, trips and many other services and leveraging your assets to get a loan is a great option

Q: What potential did Creditas see in the Mexican market?

A: We started in Brazil, covering Latin America’s largest economy, and the next step was to come to Mexico. We saw many similarities between the Mexican and Brazilian markets and we recognized that we could leverage everything we learned in Brazil to boost Mexico. The Mexican market has a shallow penetration of credit in comparison to other countries because there is limited financial education and few tools to get access to credit. In 2020, Mexico’s domestic credit to the private sector represented 39 percent of its GDP, while in Brazil this rate is 70 percent, according to the World Bank. The digital economy is also becoming more appealing. Because we acquire customers through digital channels, Creditas turned out to be a great fit for Mexico. Finally, we see potential in reaching the population underserved by current financial companies, as our financial products can help them achieve what they want in their lives with an innovative financial product. 

Q: How has Creditas continuously developed software for the client’s benefit and what would be the main points the company considers in this area as essential for its growth?

A: We have a great tech team and, we believe that investing in products has made all the difference in the world and our tech stack allows us to improve the customer experience. Having a strong product, design and tech team has helped us create and develop our own solutions and everything developed by the company is tied to one of the company’s OKRs (objectives and key results). By innovating through technology and financial services, we improve our products and drive customers to use them.

Q: How is Creditas expansion strategy in Mexico planned out and what does the company expect to obtain from entering this market?

A: We believe much of Creditas' growth will come from Mexico. At first, we focused on setting up processes, adapting the products to the market and ensuring they worked in Mexico. We now have our core products in Mexico: car financing, home equity loan, car equity loans and Creditas Beneficios. In 2023, we plan to continue growing and reach the client numbers we have in Brazil in a shorter time frame since having experience in another Latin American country will help us grow faster. The next step for us is to increase our product offering and reach more consumers.

At Creditas, we believe that through technology and human interaction, we can solve issues for our consumers. We want to become Mexico’s partner and the main player in the lives of our consumers.

Creditas is a digital platform focused on improving the lives of people in Latin America through auto, real estate and corporate benefits. The company provides a wide range of products and services to its clients, including fintech solutions, digital insurance and consumer solutions, using its proprietary technology to offer a unique experience.