Proactive Listening Broadens Access, Financial Inclusion

Q: How has Creditea’s business model evolved since the company started operating in Mexico?

A: We began in 2016 by offering personal loans, but we realized the following year that the best way to help Mexican users was to offer a revolving credit line. Over the years, we have faced challenges in educating people about what a revolving credit line is. Many are used to short-term loans with monthly or bi-weekly payments, so we decided to launch this project with a credit limit of MX$40,000 (US$2,059). Users only pay interest on the amount they actually use. The flexibility is key as users can prepay their loan if they have extra money, freeing up their credit line again. This way, customers do not need to constantly take out new loans, which can negatively impact their credit score due to frequent inquiries.

Q: Creditea offers loans ranging from MX$2,000 to MX$70,000. What makes this range attractive both for you and your customers?

A: Mexicans often need immediate financial solutions for urgent needs like medical emergencies, household expenses, or even supplementing a paycheck. We have also noticed that many customers use these smaller loans to support small businesses or entrepreneurial ventures. The flexibility of our credit line allows them to use it for everyday needs or for their small businesses, depending on their circumstances.

Q: Why did Creditea choose to bring this product to Mexico?

A: We operate in nine countries. We saw an opportunity here with the initial wave of fintech that took place around 2014-2015. We allow users to receive their funds in less than 24 hours. While some companies promise faster loan processing, we prefer to ensure responsible lending and provide loans that customers can actually repay. We have invested in technology that helps us assess a customer’s income and financial behavior, using public data sources and income statements or bank statements to fully evaluate their credit profile.

Q: How does Creditea assess and mitigate credit risk, especially for customers without extensive credit history?

A: We maintain an open relationship with our customers. By doing so, we can periodically check their credit history, not only with us but also with other financial institutions, both banking and non-banking. This allows us to proactively offer credit line increases or promotions and we can accompany the customer throughout their financial journey. We have clients who started with small lines of credit — around MX$8,000 — and are now well above the average credit limit. We also focus on financial education by offering workshops and webinars. Recently, we also launched a podcast. It is not always easy to engage people in financial education, but it is part of our mission.

Q: How do you attract customers who may be hesitant or even fearful of entering the financial system?

A: There is apprehension among some people, and the market is full of all sorts of offers, some of which are not from legitimate companies. Identity theft is not just a risk for individuals but also for businesses. Fraudulent groups have posed as well-known companies, like Creditea. To combat this, we maintain clear communication on our website and reassure customers that we are backed by a global financial group with over 130 years of history. Our parent company, International Personal Finance, is publicly traded on the London Stock Exchange. This gives customers the assurance that they are dealing with a trustworthy company that is not going to disappear overnight.

Q: What technologies does Creditea want to integrate into its product and how will they benefit clients?

A: We have some exciting projects planned for next year, particularly around generative AI. We plan to implement AI across various stages, from credit risk assessment to post-sale processes. We also want to maintain the human touch that our customers appreciate. AI can handle more straightforward queries, allowing our team to focus on more complex customer needs. Additionally, we are investing in omnichannel communication. This means that no matter what channel the customer uses, their interactions will be seamlessly integrated. If a customer talks to one representative, the representative doing the follow-up will have access to the full history, creating a better customer experience.

Q: Who is your primary customer base in Mexico, and how do you tailor your services to meet the specific needs of these customers?

A: Our revolving credit lines are available to people between 18 and 65 years old, but our primary target is individuals between 27 and 45 years old. This group tends to fall in the lower-middle-income bracket, with incomes starting from about MX$5,000. We recently launched a short-term loan product to reach a broader audience, especially those who might not have a credit history or cannot yet access larger credit lines. The idea is to create a progression: customers can start with smaller loans, demonstrate good repayment behavior, and eventually qualify for our revolving credit line.

Q: What international trends are expected to enter Mexico, and how will the company incorporate them?

A: The most immediate trend is the adoption of AI, which is becoming a necessity. Whether it’s a fully integrated credit system or just one part of the process, at some point, AI must be incorporated. Real-time payments are also a growing trend. Customers are increasingly demanding instant solutions, especially younger generations, who value immediacy and flexibility. We see this trend growing rapidly, and we are aligning with it. For example, we are focusing heavily on real-time payment recognition and using AI to predict customer preferences based on behavior, not just what we think they want.

Q: How do you plan to close 2024? What would make the year a total success for Creditea?

A: We have already reached last year’s placement levels and we expect to close 2024 with 20%-25% growth compared to last year. We have launched a new short-term loan product, which complements our Pay Later offering and our existing credit line. We also have a couple of additional financial products slated for release next year. Our goal is to offer a more varied portfolio of financial products tailored to our users' profiles.

In 2025, we plan to roll out version 3.0 of our app. Most of our operations are conducted via our website, but we want to incorporate more technology and functionalities into our app because that is what our users are asking for. We are also working on some financial products that are still in development.

Creditea is a personal lending platform that offers credit to those previously excluded from the financial ecosystem. It offers loans from MX$2,000 (US$103) up to MX$70,000 (US$3,603).