Belvo and Uala partner to provide credit access to Mexicans using employment data as a basis
In a significant move to enhance financial inclusion in Mexico, leading Open Finance platform Belvo and major digital bank Ualá have formed a strategic alliance. This partnership aims to bring real financial opportunities closer to those who need them most, particularly those with limited credit history.
## Key Aspects of the Alliance
The partnership leverages Belvo's comprehensive, high-value solutions in financial data, positioning it as a leader in Open Finance and an engine of financial inclusion. Ualá's digital credit strategy is fortified by this alliance, providing precise, real-time information. The alliance utilizes official employment data as a reliable source to assess creditworthiness, allowing for the evaluation of individuals based on their employment history rather than traditional credit scores.
## Benefits for Mexicans with Limited Credit History
This partnership is expected to increase access to credit for millions of Mexicans who lack a traditional credit history. It aims to decrease rejection rates for credit applications, offering more opportunities for financial participation. By using employment data, more individuals can access credit, contributing to a more inclusive financial ecosystem in Mexico.
The system has already demonstrated a successful connection rate above 95% and substantially improves credit approval rates. According to Joaquín Dominguez, regional vice president of credit at Ualá, the alliance allows for quick, safe, and frictionless credit extension to a previously excluded user base.
## Expansion and Sustainable Growth
This alliance presents a key opportunity for Ualá to expand its active user base and continue sustainable growth in the Mexican market. Belvo's Employment Data product will be used by Ualá to make instant credit decisions without requiring a previous bureau record.
## Addressing Financial Exclusion
The partnership comes in a context where financial inclusion in Mexico still faces significant challenges. According to the 2024 National Survey of Financial Inclusion (ENIF), 71.8% of the Mexican population holds at least one formal financial product. However, a significant gap persists, especially among young people and women, where the difference with men is 8.1 percentage points. The alliance between Belvo and Ualá is a step towards democratizing access to credit in Mexico, as stated by Federica Gregorini, country manager of Belvo in Mexico.
Ualá recently reinforced its financial structure by raising an additional $66 million in its Series E, with AllianzX participating. Both companies reaffirm their commitment to driving financial inclusion and the democratization of credit in Mexico through the use of technology. The alliance aims to speed up access to credit for millions of Mexicans who lack a traditional credit history, improving the quality of life for millions of people in Mexico.
- Belvo's comprehensive financial data solutions, as a part of the strategic alliance with Ualá, are being employed to strengthen Ualá's digital credit strategy, providing real-time, precise information.
- The partnership between Belvo and Ualá utilizes official employment data, enabling creditworthiness assessment based on employment history instead of traditional credit scores, significantly benefiting those with limited credit history.
- The alliance is predicted to increase credit access for millions of Mexicans by improving credit approval rates and reducing rejection rates for credit applications, thereby contributing to a more inclusive financial ecosystem in Mexico.
- As Ualá expands its user base and aims for sustainable growth in the Mexican market, it will leverage Belvo's Employment Data product, allowing for instant credit decisions without a prior bureau record, ultimately addressing financial exclusion and democratizing access to credit in Mexico.
