ID Finance grows footprint in Latin America with launch of Mexico operations
21 September 2018

ID Finance, the emerging markets fintech company, has expanded its presence in Latin America with a launch into the Mexican online lending market. The announcement comes less than a year after the company launched operations in Brazil and represents another key milestone as it continues its aggressive global expansion.

It is an exciting time to be expanding our footprint in LatAm and we see enormous potential for online lending in Mexico. It is an important step towards becoming the number one alternative lender in the region,” comments Boris Batine, Co-founder and CEO at ID Finance.

With a population of 127 million and 61 per cent of adults lacking a bank account according to World Bank, Mexico represents one of the largest opportunities for fintech in Latin America. Mexico’s low bank branch coverage – 14 branches per 100,000 inhabitants compared to 33 in the US – together with an underdeveloped transport infrastructure further exacerbates the need for fintech services.

The core of ID Finance’s business is its proprietary risk management system, which uses machine learning and advanced data science techniques for credit scoring. The company has one of the best performing risk management systems in the industry and is able to reach profitability within a year of launching into a new market.

The growth in internet usage and smartphone penetration is creating an enormous opportunity for fintechs,” comments Yannick del Ponte, Country Manager at ID Finance Mexico. “ID Finance’s unique scoring technology give us a significant advantage over the competition while our Moneyman online lending product will bring much needed simplicity and transparency for consumers here in Mexico.”

Mexico is expected to have 91.6m active internet users by 2021 and 75.4m smartphone users by 2022. Proposed government reforms centred on financial inclusion, and upcoming regulatory changes are driving development of the sector.

Latin America is fast becoming one of the most fertile grounds for the fintech industry. Fintech accounted for almost 30 per cent of venture capital investment in the IT sector in 2015, growing to 55% of IT dollars in 2016. Goldman Sachs estimates that the Brazilian fintech sector will generate potential revenues of $24bn over the next ten years, while fintech startup accelerator Finnovista believes fintechs could take up to 30 per cent of the Mexican banking market in the next decade.

Dmitry Gorokh
Director de estrategia de comunicación
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