Monet, a Colombian payroll-backed lending fintech, announced an alliance with Grupo Bancolombia to bring new financial services to four Central American countries.
The fintech will now operate in Panama, El Salvador, Guatemala, and Mexico, where it plans to become an ally of the region’s underbanked population, which does not have credit scores and, therefore, lacks access to lending and personal credit possibilities in traditional banking.
“We have become a natural ally of Bancolombia; more than 50% of our users have financial products with them. So, we have very good synergies,” Leonardo Devincenzi, CEO of Monet, said in a statement to the Colombian media.
Becoming a relevant player in LatAm’s online lending sector
Monet’s platform, founded in 2019 and with passage through the Y Combinator accelerator, offers payroll loans and digital wallet services. It is looking to become a relevant player in the online lending sector with its platform.
According to the company, the platform has provided more than 400,000 loans since its founding.
In 2021, the company launched a digital wallet with the BaaS model, in partnership with Bancolombia, connected to current and savings accounts, which allows using Bancolombia QR codes to make purchases and check balances.
Cash advance platform for the underbanked population
But the company’s flagship cart continues to be the cash advance platform based on users’ income. According to the fintech, Monet can grant an advance by analyzing a person’s recurring income, and 70% of users requesting money through the platform fall into this category.
These Monet income advances are available to anyone with recurring income, regardless of employment status.
In addition to its expansion plans in Central America, the fintech revealed that it is considering launching a credit card and creating a marketplace within its digital wallet.
Monet also aims to bring its user base to 300,000 by the first half of 2023.
Jorge C. Carrasco is a Contributing Reporter at Fintech Nexus. He reports on fintech, economy, banking, startups, and technology, covering the most impactful stories from a Latin American perspective.
He has contributed to several international publications, such as Foreign Policy, The Spectator Australia, Estadão, Época, Washington Examiner, and Quillette. Originally from Havana, Cuba, he is now based in Brazil.