With the purpose of improving the credit life of millions of Colombians, as well as the entrepreneurship, development, and growth of new businesses, and strengthening an ecosystem for social impact investment, the Colombian fintech company R5, focused on offering financial solutions for vehicle owners, received a new round of investment from AlphaMundi.
AlphaMundi is an investment fund based in Switzerland that invests in solutions that generate benefits that are quantifiable for society.
Read more about the Colombian fintech company R5 and find the most important financial news of the day with the Born2Invest mobile app.
With this investment, R5 fulfilled one of its objectives, which was to demonstrate the impact it is generating and thus be able to continue working with the help of impact-minded investors
Precisely, one of the social impact indicators that R5 has is focused on the percentage of clients who have been able to help and who have had at least one negative experience of being financially excluded by traditional banks. Therefore, at present, 55% of its loans are granted to people with medium to low incomes, most of whom make use of these products to improve their economy through the purchase of a vehicle or to finance their microenterprises.
“The objective with this investment is to improve our credit product focused on the purchase of used cars and reach more customers, most of whom meet a characteristic of financial exclusion due to their economic activity (self-employed). Through this investment, R5 will continue working to have a significant increase in the percentage of customers who need an ally to make their dreams come true or simply improve their living conditions,” explained Pablo Armida, co-founder of R5.
Similarly, of the total number of clients served since 2019 by R5, 43% corresponds to loans granted to independent clients, to whom the fintech company has been more open to help generate greater financial inclusion, and 60% of women who receive a loan from R5, are in a condition of economic vulnerability.
Within the definition of vulnerability criteria, R5 considers that people who have the income necessary for the economic support of their households are people who generally have a higher probability of crossing the poverty line, so any variation in their income is sensitive to ensure a good quality of life in their homes.
Why is it important for a fintech company to measure its social impact?
The purpose of fintech companies is to use technology to provide faster solutions at lower costs with the objective of improving financial inclusion and the quality of life of people. In this way, investments such as those made by AlphaMundi and other social impact funds are not only measured in economic terms but also in their capacity to generate substantial benefits for society.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in Portafolio. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [++ A2 Hosting Affiliates Review]
Something's brewing in the Right to Repair space. Lawmakers are increasingly law-making. DIY fixer upperers are increasingly fixer uppering. And,...
Why the Carbon Credit Market Is Not Working
The Carbon Brief analysis focused on 34 companies that alone used 38 million tons of carbon dioxide over the period...
Recrowd, Real Estate Lending Platform, Finally Gets European Authorization
Recrowd adopts a distinct approach for less sophisticated investors, limiting their investments to under €1,000 or 5% of their net...
Why the Amounts Invested in Belgian Fintech Companies Decreased
In 2023, the Belgian fintech sector has not witnessed any major fundraising events similar to those in previous years, such...
Bitcoin Soars 130% This Year: Will It Reach New All-Time Highs in 2024?
Bitcoin is currently trading within an ascending channel, maintaining support at $35,000, with an upward trajectory towards the psychological resistance...
Business2 weeks ago
CardCash.com [RDE, Inc. | OTCQB: RSTN] Is Turning Unwanted Gift Cards Into Investor Profits — Here’s How
Fintech5 days ago
How the Fintech Sector in Mexico Developed
Crowdfunding1 week ago
Wecity Launches Real Estate Crowdfunding in Portugal
Crowdfunding3 days ago
Walliance Buys Lymo, the First French Real Estate Crowdfunding Platform