Belvo partners to improve access to credit in Mexico

Individuals in Mexico who are currently outside the banking system will be better able to access credit, following a partnership between financial services group Citibanamex and Latin American Open Finance data and payments platform Belvo.

According to the 2021 National Survey of Financial Inclusion (ENIF), only 33% of Mexico’s population has access to formal credit, with those who have never had it citing an inability to meet the requirements as the main reason.

Belvo verifies users’ employment histories, as reported by their employers, to the Mexican Social Security Institute (IMSS).

Through the Belvo platform, fintechs and financial institutions can access and process financial data, as well as initiate payments from their users’ accounts.

The partnership will enable Citibanamex to offer credit and credit card options to users without a credit history, or to those for whom verifying their income is a challenge, by taking into account factors including the number of credits requested, outstanding debts, and the applicant’s economic activity.

“At Citibanamex, we are continuously seeking financial inclusion solutions to facilitate access to banking products for individuals who have not been able to benefit from current solutions,” said Miguel Lavalle, director of digital business development at Citibanamex.

“With this new functionality, it will be easier for our customers to verify their income, making credit opening processes more agile.”

Federica Gregorini, general manager of Belvo in Mexico, added: “We are excited to see how financial entities in Mexico are betting on Open Finance models due to their positive impact on reducing the gap in access to financial services.”

Last month, Belvo launched an employment data aggregation solution in Colombia, which allows users to share their formal employment income data, giving credit providers an additional way to verify users’ income, status, and job stability.