Klar Targets IPO, Expands Digital Finance Services in Mexico

Q: How has Klar evolved during the past three years?

A: Some core principles remain unchanged. Klar was founded in Mexico, for Mexico. That local focus has remained central to our identity, especially in a market that has seen significant international competition. This has helped us differentiate ourselves in terms of our business and culture, and in how users perceive us.

We now operate at a much larger scale. The company is more established in what is also a much more mature industry. Three years ago, we were in the middle of the fintech boom and many new players were entering the market. While digital platforms are still growing, the number of players has narrowed, and those that remain have reached greater scale.

Klar has positioned itself as one of the most relevant digital financial platforms in Mexico, and that is reflected in our sales volume, credits, deposits, and number of users. 

Q: How have Mexican consumers' financial needs evolved since Klar launched?

A: Users are now making digital platforms their first choice when selecting a bank. When we launched, many users saw platforms like Klar as their second or third choice, something to be used alongside a traditional bank. More people now see us as a serious alternative to traditional institutions. That includes two types of customers: those who already had a relationship with the financial system and are now switching to us, and those who are just now entering the formal financial sector.

About 35%-40% of our customers are accessing financial products for the first time through Klar. We built that trust over the years by offering higher-yield deposit products and a healthier credit experience than many alternatives. 

Q: What strategies did Klar implement to offer a healthier credit experience?

A: In Mexico, roughly 83%-85% of adults still do not have access to formal credit, even though the demand exists. People are seeking credit wherever they can — on websites, mobile apps, or even from neighbors or family. The appetite is not the issue; the formal sector simply has not provided enough accessible options.

Klar meets that demand in two ways. First, we offer products to people who otherwise turn to informal or unregulated sources. We give them access to digital, regulated financial products, where there are clear rules about how credit is issued and collected. Second, for users who already have some access to credit, we provide a better alternative. For example, we launched our platinum card about six months ago. It is aimed at users who already use formal credit products but are looking for a better experience, one with more transparency around fees, rewards, and interest-free installments. 

Q: How does Klar’s offering differ from that of other banks operating in Mexico?

A: In Mexico, the leading consumer bank pays 0% interest on about 80% of its deposits. In Brazil, this is only the case for 7% of accounts, the rest pay an interest to their depositors. Digital platforms like Klar offer users 10%-15% returns on deposits. By offering better returns, we motivate people to move their money out of traditional banks or cash-based systems. This is also a form of financial inclusion as it gives people a compelling reason to keep their money in a regulated institution where it is secure and earns returns.

Over 50%-60% of our depositors had never received returns on their money before Klar. Over time, this sets them up to explore more complex financial products like stock investments or diversified portfolios. But the key first step is getting them out of a 0% return mindset and into a system where their money works for them.

Q: How is Klar preparing to launch an IPO by 2026?

A: Setting a goal for an IPO sends both internal and external messages. Mexico’s tech ecosystem has not yet produced a high-profile tech IPO, and we believe that milestone is long overdue. Klar wants to help change that. A public offering would bring liquidity to investors and stakeholders, and it would mark a major step forward for the local tech and fintech ecosystem.

We focus on growing responsibly, both in top-line revenue and net income, while maintaining strong margins and a lean cost structure. That way, we can meet whatever bar the public markets set. We still have a lot of work ahead, but are committed to that path.

Q: What measures are necessary to fully develop Mexico’s financial ecosystem, and what barriers have limited its evolution?

A: For large, established players, the system is not broken, so there is no incentive to fix it. But that only holds true for them. For many Mexicans who are excluded from the formal financial system or who only have access to basic, low-value financial products, the system is broken.

Klar strongly believes in building solutions designed specifically for Mexicans, within the bounds of regulatory frameworks and always in collaboration with the authorities. We respect the rules set by regulators and have consistently operated in compliance with them, with precision and rigor.

Q: Mexico’s Central Bank recently warned fintechs and Sofipos to be cautious when issuing credit, as delinquency may increase. Does Klar share this concern?

A: Our perspective is different. The fintech ecosystem has matured. Klar has built financial, operational, and technological robustness that puts us on par with any major institution. The market has consolidated. Those of us who have earned the trust of millions of Mexicans now have the scale to grow sustainably. We also have investors who continue to support and capitalize on these opportunities.

Our concern is that problems may persist or worsen in the informal sector where oversight is weaker, potentially creating risks like fraud, insolvency, or reckless lending. This could become a regulatory challenge. Many in the financial sector, Klar included, operate in the regulated space, where there is complete transparency about our portfolio, funding capacity, and capitalization levels. That is why we are pursuing a full banking license, to strengthen our position and reinforce trust through greater transparency. 

Q: What financial education initiatives is Klar incorporating into its services?

A: Financial education is a fundamental part of what we do. We use AI to help users understand their financial standing. Our main priority is helping users avoid over-indebtedness and maintain financial health. That is why regulation is crucial: it fosters transparency in both institutional strength and product terms, ensuring users make informed decisions.

Q: What are Klar’s strategic priorities for the remainder of this year and the next?

A: We are focusing on expanding both the depth and breadth of our product platform. Klar has always moved faster than our competitors, and we have built an offering that allows us to form multi-product relationships with our users.

We are taking a major leap with Klar Empresarial, our offering for Mexican SMEs, the true engine of the national economy. We are building a fully digital, hassle-free platform with high-yield accounts and flexible credit tailored to their needs. This is a bold move into a new segment that complements our consumer business, and aligns with our mission to democratize financial services and empower more people and businesses across Mexico.

Klar is a Mexican company that offers accessible credit, high yield accounts, and personal loans to boost financial inclusion.