Financial technology, or Fintech, is an emerging industry that automates the delivery and use of financial services. It offers WSMEs promising opportunities for financial inclusion. During the pandemic, more and more SMEs have turned to fintech to meet their financing needs, and We-Fi Implementing Partners have expanded their fintech partnerships.
In Latin America, one of the fastest-growing regions for fintech, IDBG has partnered with Kubo Financiero to boost financing for WSMEs in Mexico. Kubo Financiero is an online digital platform that offers loans, investment plans, and savings accounts. To mitigate collateral or credit history issues, it uses alternative data to determine creditworthiness and issue loans.
We-Fi supports the IDBG investment in Kubo Financiero through blended finance and advisory services. This includes an integrated performance-based incentive to encourage Kubo Financiero to serve 9,000 WSMEs by 2026, representing over 50 percent of their total SME portfolio. Fintechs such as Kubo Financiero is uniquely positioned to build gender-intelligent value propositions with a data-driven, tailored approach.
