Enhancing Financial Accessibility in Mexico Through Belvo's Integrated Technological Solutions
In a groundbreaking move, Clip, the leading digital commerce platform in Mexico, has partnered with Belvo to revolutionize financial inclusion in the country. The partnership leverages Belvo's technology to provide an end-to-end solution for the entire credit cycle, focusing on those historically left out of the financial system.
The alliance between Clip and Belvo is part of a growing trend among financial institutions and fintechs, moving beyond traditional data models and embracing alternative data sources for more inclusive and efficient products.
Clip utilizes Belvo's payment processing capabilities to automate payments for businesses of all sizes, reducing collection costs, improving success rates, and decreasing customer churn. This partnership also enables Clip to automatically update users' employment status, ensuring dynamic adjustment of risk and keeping credit limits up to date.
Belvo's bank-debit product allows Clip to automate recurring collections, improving cash flow, and delivering a frictionless experience to users, particularly in verticals like gyms, insurance, education, and subscription services. The partnership serves as a means to provide technology, data, and scalability to those who have been excluded from the financial system.
The integration between Clip and Belvo redefines personalized credit offering and recurring payment collection, setting a new standard for financial product design in Mexico. With Belvo processing approximately two million account-to-account payment transactions monthly and having an annualized total payment volume (TPV) of over $500 million, the partnership offers significant potential for growth.
Moreover, Clip has built robust infrastructure using Belvo's full suite, including employment data, employment updates, and account-to-account debit payments. This infrastructure allows Clip to understand an applicant's job stability and income capacity, even when traditional banking history is absent.
Since adopting this technology, Clip has reported tangible gains after incorporating variables such as length of employment, formal income, and frequency of job changes. The partnership aims to solve financial inclusion challenges, with Clip providing reach and Belvo providing data and infrastructure.
The full visibility across the credit life-cycle provided by Belvo's technology has helped Clip minimize fraud, automate processes, and offer more personalized loan terms through its credit platform, PrestaClip. The partnership with Belvo further expands its reach and impact, as Belvo collaborates with JP Morgan Payments for recurring payments in Mexico.
This partnership reinforces Clip's commitment to financial inclusion in Mexico. By enabling better access to credit for people without traditional banking history, the partnership significantly improves financial inclusion in Mexico, making it easier for individuals and corporates to access the financial services they need.
References:
[1] Clip. (n.d.). Press Release: Clip and Belvo Partner to Revolutionize Financial Inclusion in Mexico. Retrieved from https://www.clip.mx/blog/clip-belvo-partner-to-revolutionize-financial-inclusion-in-mexico/
[5] Belvo. (n.d.). Belvo Processes Over 30 Million CURPs with a Connection Success Rate Above 98%. Retrieved from https://www.belvo.com/blog/belvo-processes-over-30-million-curps-with-a-connection-success-rate-above-98/
- The partnership between Clip and Belvo, part of a growing trend, moves beyond traditional data models to embrace alternative sources for more inclusive and efficient financial products.
- The alliance enables Clip to automate payments for businesses, reducing costs, improving success rates, and decreasing customer churn, using Belvo's payment processing capabilities.
- The partnership allows Clip to automate recurring collections, particularly in verticals like gyms, insurance, education, and subscription services, improving cash flow and delivering a seamless user experience.
- The integration between Clip and Belvo redefines personalized credit offering and recurring payment collection, setting a new standard for financial product design in Mexico.
- The partnership offers significant potential for growth, with Belvo processing approximately two million account-to-account payment transactions monthly and having an annualized total payment volume (TPV) of over $500 million.
