Financial Apps Take the SpotlightBy Sofía Hanna | Thu, 03/04/2021 - 18:01
The Mexican fintech company, Konfío, received US$160 million from Goldman Sachs. This investment will allow Konfío to maintain its original goal of disrupting traditional lending practices for SMEs. The Mexican startup uses different data analysis tools and risk assessment and has a fully digital relation with its clients. "Konfío is changing the way Mexican companies access credit, bringing to market an agile and innovative process based on powerful proprietary technology," said Maeve DuVally, spokesperson for Goldman Sachs, to El Financiero.
Goldman Sachs’ investment, according to an MBN article, will be used to keep giving loans to SMEs in Mexico. Having access to credit just in time, under the right conditions, is one of the most important factors for SMEs, which are also responsible for 74 percent of jobs in Mexico. The issue is that SMEs are sometimes left behind or unattended. Konfío fixes that by making loans much more accessible. Customers can actually fill an application form in eight minutes and access the funds in the following 24 hours.
Since 2013, the company has given around 50,000 loans.
Interested in more? Here are the week's major headlines in Finance!
- J.P. Morgan, one of the world's largest investment banks, is closing its private banking business in Mexico. The official announcement has not been made yet, so people are still unaware of why this is happening. This is also not the first firm that has left Mexico. In 2020, the Ministry of Finance and Public Credit announced the closure of the Bank of Montreal's representative offices and the Israeli Mizrahi Tefahot Bank.
- Since the last Superior Auditor of the Federation (ASF) audit to NAIM’s cancellation costs, there has been much controversy. The ASF report mentioned that the cancelation represented 232 percent more than what the federal government had initially predicted at the start of President Lopez Obrador's administration. However, the president mentioned that this was not the case during a morning press conference and that he had "other data." "We do not want to be used by anyone for political purposes. That is why I ordered … to clarify the issue, particularly regarding financial compliance," said David Colmenares Paramo, head of the ASF.
- On Feb. 26, InvestinMx was officially launched. "InvestinMx is a digital platform that, in addition to attracting investment, will enable ten states to collaboratively promote the country, positioning Mexico in the international trade arena, coordinating a joint promotion strategy and developing and promoting productive linkages," states the app website. The platform has news on each sector, promoting networking events and sharing economic profiles and reasons to invest. It also provides information on international trade agreements, gross domestic product results, foreign direct investment and general data regarding geography and connections that could be beneficial for an investor.
- Moody's has been taking a close look into the electrical reform being proposed by AMLO and it has warned Mexico against it. The chamber of deputies and the Senate have already approved the initiative, which means the country's score is likely to be lowered. Moody’s also made clear that just because the reform is approved, CFE's score would not be reduced. However, they did warn that if the company's investment program is financed through debt in its entirety, increasing CFE’s financial metrics without costs being offset by government subsidies or increases in electricity rates, the utility’s score would also go down.