ALMI Financiera Seeks to Stop Interest Rate Abuses in Loans in Colombia

ALMI Financiera is a fintech company that seeks to continue growing in Colombia. The purpose of ALMI Financiera is to continue growing credit placement at rates close to 200% per year until 2025.

Informality continues to be one of the pending problems in the financial system in Colombia, since those who mainly resort to informal credit are people who are not served by the traditional banking sector and low-income people who seek to fulfill their projects, many of them reported in credit bureaus.

On the other hand, there is a large group of employers and employees who are unaware of the possibility of applying for payroll-deducted loans.

In this sense, ALMI Financiera, a Fintech specializing in payroll deduction, was created as an option for all those Colombians who wish to obtain a low amount of credit and who are working with a labor contract, making loans to all employees of a company and helping companies to provide additional benefits to their employees.

The company, which provides loans 100% digitally, helps people who are not served by the traditional banking sector, as well as those reported in credit bureaus and even foreigners who are formally working in Colombia.

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This is how ALMI Financiera works

The financing mechanism for many of these workers in the country continues to be the so-called “drop by drop”, credits granted by irregular entities to obtain a loan easily and quickly, but with very high-interest rates, very different from how it would be done in a bank or regulated financial institution.

According to figures from the National Administrative Department of Statistics (DANE), the “drop by drop”, is still the financing model of many people in Colombia, in fact, it has increased by 75% in 2021 compared to 2019 representing a risk in their survival due to the payment of high-interest rates and payment terms that can often play against them. Therefore, turning to this type of loan is not the best option for anyone, as it exposes people to numerous risks.

“We are a fintech company whose main value is to help people with those immediate needs that come their way, that take away their sleep or don’t let them concentrate on their work. The process is 100% technological and secure. This benefit can be used by employers to retain the talent of their employees, as well as to enhance their performance since they do not have to worry about financial problems,” says Camilo Maya CEO of ALMI Financiera.

According to the entity, the market is made up of more than 22 million people in active employment, of which 15.7%, representing a total of 3.4 million people receive a minimum wage and 6.9% of the population, which is equivalent to 1.55 million people who receive one and a half to two salaries, who are not normally served by traditional banks and currently there are about 5 million people who resort to informal credit such as “drop by drop.”

At the same time, ALMI Financiera is a strategic ally of the companies, since it allows them to have more control over the disbursements of the employees and, at the same time, offers them a credit portfolio with support and guarantees “we know firsthand the needs of the companies around the credits with the employees, for that reason, we have designed a platform that allows the synergy between the employer and its employees, taking into account the benefit of the payroll credits. Within our portfolio we want to offer our clients cash back for the use of our platform,” said Maya.

In this way, and with a growth in the period from 2020 to 2022 of 280% annually, with more than 4,270 credits disbursed, more than 60 strategic alliances with 30,000 potential workers, and more than 80% reuse of the product, ALMI Financiera aims to become a virtual wallet where Latin Americans can pay their payroll by offering them an ecosystem in which they can acquire a series of benefits such as savings, discounted products and services such as free consultation with a doctor or lawyer.

Finally, the purpose of ALMI Financiera is to continue to grow the placement of loans at rates close to 200% per annum until 2025, which will create a more robust structure for its customers where they have many more benefits through savings under intelligent consumption.

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(Featured image by Mimzy via Pixabay)

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First published in VALORA ANALITIK, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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