Spain’s software vendor specialising in real-time event processing for financial institutions Latinia has invested in software-as-a-service (SaaS) fintech company Abaco.
The financial details of the transaction are not divulged.
Abaco offers access to finances to unbanked individuals in Colombia and Mexico, without requiring their credit histories, by developing a “groundbreaking” software.
The gig economy-focussed startup identifies the delivery platform workers and freelancers’ behaviour, by analysing their financial profile, to build a credit report.
They can receive low-to-no interest microloans of COL$100,000-1,000,000 ($28-288), based on this information.
Abaco CEO and founder Victoria Alegria said: “Abaco already works with Rappi, Denario, Picap and Mensajeros Urbanos. Reaching this segment of the population means serving the heart of many countries’ economies.
“Traditional banking uses credit scoring models that lack sufficient information to assess this segment of customers and allow them access to credit.
“Financial inclusion will only be possible with personalized scoring that adapts to people’s actual labour models and economic activities, to be able to understand their needs.”
Latinia invested in Abaco to accelerate financial inclusion in the South America region.
Latinia corporate development director Oriol Ros said: “We believe in Abaco’s model, and find it interesting because it is a project with a purpose: to make a market of hundreds of millions of people, who have never had access to bank credit, visible to traditional banking.”