Mexico stands out as an exception in Latin American microfinance. Despite having the region’s largest population and its largest microfinance market, Mexico has a relatively small overall loan portfolio, especially compared to much smaller countries like Peru or Colombia. The reason isn’t a mystery to industry watchers—it is due to the continued dominance of village banking, the style of lending associated with the early days of microfinance where a group of low-income people act as each other’s guarantor.
There are over 5 million MSMEs in Mexico, most of which are not served by commercial banks because they are small, informal, or not seen as profitable. Many firms and entrepreneurs lack credit history, making it difficult for banks to lend to them. Informal lenders exist, but often charge punishing interest rates of 100% or more.
Digital Lending is a possible solution to coming up with credit history from various data points. There are various digital lending software providers in the Indian market. Below are some of them:
- Loanbook
Loanbook is a simple lending application available for various platforms like web, Windows and Linux. The goal of the application is to simplify software acquisition implementation process for simple lenders like payday lenders from months to minutes. Loanbook is powered by Jisort platform which is a fully fledged banking system for SACCOs and MFIs. Loanbook setup is as simple as:
- Setting your default country,
- Setting your currency, and
- Setting your default bank.
The application is free to use for one user and only an additional user is billed.
2. Loandisk
The idea behind Loandisk was conceived by one of the founders who also happens to run a recruitment company in Australia. Having hundreds of employees meant that some employees required loans from the company and it was becoming increasing difficult to manage the loans.
So the idea was born of developing an internal software that will manage all the loans and repayments. After developing the software and using it for 1 year, it became evident that this was a great tool which made it easy to manage the staff loans.
One of the HR managers who was responsible for giving loans suggested that she can market this software to other lenders. The vast majority of lenders don’t have any software to manage borrowers and loans. It is all done through Excel or paperwork and manually sorting through entries in diaries and endless piles of paper stored in cabinets. So it was decided to market the software to lenders. Loandisk was formally launched worldwide in 2015.
3. CREDITONLINE
CREDITONLINE is a premium online loan business management system. System was developed by analyzing the good practice of the European loan market and its economical trends. CREDITONLINE supports consumer, payday, installment, secured loans, P2P lending and many more loan businesses. It is developed on the basis of cost saving and effectiveness, and is fuly automated
4. LoanCirrus
LoanCirrus is a Digital Banking Platform used by Financial Institutions in more than 25 countries. A fully Cloud based, distributed platform allowing lenders to quickly digitize their operations, implement process controls and automate key parts of their business. LoanCirrus exist to empower lending. While they support any lending activity they target Micro-lenders and Microfinance institutions. They are driven by the desire to expand opportunity globally by enabling and empowering Lenders and also by disrupting the distribution of lending and banking software.
5. LendFoundry
LendFoundry is a fintech accelerator for digital lending. LendFoundry provides end-to-end lending solutions from marketing, acquisition, underwriting to loan servicing system. Founded in Irvine, California in 2015, LendFoundry’s mission is to build the systems that will allow marketplace lenders to eliminate tech build out, minimize IT infrastructure and accelerate marketplace lender’s growth strategy. They enable digital lenders to focus on their core lending business, with access to latest acquisition, underwriting technologies, ready-made loan servicing software and portfolio benchmarking. LendFoundry is built on scalable technology and modular infrastructure as a turnkey solution for fintech startups and existing marketplace ventures.
