Fynsa
Migrante is the first and only fintech company in Chile focused on migrants. The company plays an active social role by providing value to migrants, offering them real opportunities for integration and development through access to at low interest rates and accessible financial counseling so they can make the best decisions.
The major advantage this company has is the sector it focuses on, since in Latin America, 70% of the population is underbanked—that is, 70% of people who could have access to a checking or savings account still rely on alternative services, such as check-cashing centers, money orders, or pawn shops. This translates to a total addressable market of USD 9.6 trillion and 10 million immigrants in Latin America.
If you focus more on Chile—specifically on the niche that Migrante, we see that there are 1.4 million migrants, which is more than 7% of the population; this number continues to rise, with Venezuelans topping the list.
According to the International Organization for Migration, 63% of Venezuelan immigrants in Chile are professionals, according to the International Organization for Migration, and 51.2% work in the service sector, retail, and manufacturing.
An important issue to address—one that has directly affected the company—is that, due to the recent health crisis, the use of delivery platforms has increased dramatically, and these habits have become deeply ingrained in the country’s culture. And, why is this point so important? This directly affects the company because the vast majority of employees at these delivery platforms are immigrants, which has had a positive impact on the immigrant customer segment Migrante: those seeking financing to purchase motorcycles and cars to work on these platforms, in search of a first or second source of income.
Focusing more on the banking sector, it becomes clear that, in order to obtain a loan, the requirements are often excessive. While this is an important consideration when lending money, not all of these requirements necessarily contribute to effective oversight of loan repayments.
Although this last point is important for the success of a company like Migrante, its results show that, despite not imposing as many eligibility requirements for obtaining a loan, its selection algorithm has proven effective, as its percentage of loans more than 90 days past due remains below the banking industry average—0.64% versus 1.3% as of March 2022, respectively.
In other words, Migrante is a company that helps foreigners access new opportunities in a simple way, without a lot of red tape—all thanks to an algorithm so efficient that it allows the company to charge fees well below market rates, thereby promoting inclusion and development and having a positive impact on society. This, combined with its high returns and low risk, makes it a company with high growth expectations, capable of achieving rapid global expansion through a stable business model that enables it to meet these goals.
