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Fintech Companies in Colombia Now Targeting the Vehicle Market

Making use of artificial intelligence technologies, R5, a Colombian fintech company founded in 2018, gave as an example, the three financial solutions around vehicles it is currently developing. The first is its free investment credit product with vehicle collateral that allows car owners to access credits of up to $50 million pesos, even after being rejected by traditional banks.

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Vehicles represent one of the main assets of millions of households in Latin America, but few know how to make use of financial solutions to minimize the costs surrounding them, and even fewer know that it is already possible to use them to access better credit conditions.

This market, which according to some experts has a lot of potential to exploit, began a few months ago to attract the attention of investors and connoisseurs of the digital world, seeking to diversify its range of services and let people know what can be achieved with this modality.

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The vehicle market in Colombia attracting more and more fintech comapnies

Proof of this is what is happening with the fintech company R5, which due to its rapid pace of growth attracted the attention of investors who decided to inject $7 million in a round led by Global Founders Capital. Magma Partners, Carao Ventures, Accion Venture Lab, and Endeavor Catalyst also participated in the capital injection.

Fernando Sucre, founder, and CEO of R5, said that with this investment their main objective is to increase the team, while growing in the issuance of loans up to five times compared to last year, in order to continue developing solutions that help improve financial health in Latin America.

He also stated that it is necessary for the country to start looking toward this industry that leverages Information and Communication Technologies (ICT), to provide alternatives to the people, beyond traditional banking, which, on many occasions, according to his testimony, can be exclusive.

“We are proud of the growth we have achieved during the last three years. During this time we have reached more than one million customers in Colombia, who have already saved more than 20,000 million pesos on their SOAT. In addition, in our line of credit products, we project to close the year with sales levels 5 times higher than those recorded during 2021″, said Fernando Sucre.

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It is worth noting that R5 uses artificial intelligence, technology that allows it to offer agile and fair financial products such as loans with vehicle collateral, for free investment, portfolio purchase, capital for new businesses, and home remodeling.

“This case leaves a very big lesson, and it is that daily, both fintech and insurtech, are positioned as an ally of Latin Americans, helping them to solve their problems from different areas that can range from improving their financial education, buying economic insurance to protect their assets, to having the necessary capital to do a business,” said this entrepreneur.

Making use of artificial intelligence technologies, R5, a Colombian fintech company founded in 2018, gave as an example, the three financial solutions around vehicles it is currently developing. The first is its free investment credit product with vehicle collateral that allows car owners to access credits of up to $50 million pesos, even after being rejected by traditional banks.

There is also its credit solution for the purchase of used vehicles, which not only grants loans at preferential rates to those mistreated by the banks, but also helps buyers to make a safe and transparent acquisition of second-hand vehicles, thus minimizing the risk of cost overruns or fraud.

Finally, there is the digital SOAT, with which they were pioneers in Colombia and according to their accounts “we have saved more than 20 billion pesos to hundreds of thousands of buyers who had access to exclusive discounts”.

The CEO of the fintech company stressed that technology is increasingly becoming an ally for the development of small businesses and it is precisely there where people who are moving forward with their ventures should start working.

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(Featured image by fill via Pixabay)

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

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Suzanne Mitchell juggles the busy life of a full-time mom and entrepreneur while also being a writer-at-large for several business publications. Her work mostly covers the financial sector, including traditional and alternative investing. She shares reports and analyses on the real estate, fintech and cryptocurrency markets. She also likes to write about the health and biotech industry, in particular its intersection with clean water and cannabis. It is one of her goals to always share things of interest to women who want to make their mark in the world.