The Percent team is excited to announce a new relationship with ID Finance, a tech-enabled consumer finance platform. Headquartered in Spain, this digital consumer finance platform operates in Spain and Mexico, and focuses on increasing their customers’ access to frictionless credit. The addition of ID Finance to the Percent platform marks the latest in a series of collaborations with financing providers filling the credit gap in emerging markets.
After starting European operations in 2015, ID Finance has since expanded into LATAM with an origination volume since inception of over $500 million, including nearly $150 million in Mexico. The company’s fully-automated and frictionless lending service leverages a proprietary risk management system built on machine learning and AI capabilities to provide clients with fast and convenient funding solutions. While incumbent banking institutions in Mexico struggle to fill the consumer credit gap, ID Finance has continued to capture their target market, with the majority of consumers applying again after repaying their first loan.
Jon Urgell of Percent’s Capital Markets team noted that “The ID Finance team has developed robust in-house technologies that allow them to acquire and service their clients efficiently, and their underwriting capabilities and growing origination volumes make them a positive addition to our roster of LatAm borrowers, further positioning Percent as a leading partner for specialty finance businesses in the region.”
“Our operations in Mexico have a proven track record as a sustainably growing business,” says Yannick del Ponte, CEO of ID Finance Mexico. Our customer centric approach allowed us to create the best-in-class digital product, aimed to contribute to financial inclusion of Mexico’s highly underbanked population. Apart from solving clients’ financial needs, our business model is well-monetized: $45 million in revenue with net profits of more than $2 million were generated during the first nine months of 2021. This performance is positioned to grow further with investor participation syndicated through Percent’s platform”.
As a financial technology company and alternative investment platform, Percent offers accredited investors uncorrelated, transparent, high-yield investment products while providing non-dilutive growth capital to our borrowers. With the exciting addition of ID Finance, we will continue to build an extensive network of best-in-class private credit partners while furthering our goal of transforming the industry for the better.