Monday, June 17, 2024

Chile’s data-driven lender Mento launches on Mambu to improve financial inclusion

Mento, a Chilean digital lender providing credit, payments and other financial services, has gone live on Mambu’s SaaS cloud banking platform, extending loans via cloud technology to overlooked segments of the population.

Mento caters to underserved portions of society, often deemed as unprofitable by incumbent banks due to market and regulatory constraints.

The lender differentiates itself in the bustling fintech space by taking a new approach to collecting and analysing data when extending credit, focusing more on individual cases, history and other personal information to complement or even stand in place of historical salary figures.

Many contract workers, self-employed individuals and small business owners in Chile don’t have the necessary documentation to request lending, and  are therefore turned down by traditional banks. Mento takes a more data-driven approach to loan vetting and origination.

Mento can help arrange access to loans and other services to demographics often overlooked by traditional financial institutions, due to outdated procedures conducted on restrictive legacy tech systems.

Alex Rossi, Mento’s Chief of Product, said: “Thanks to a successful launch of the first version of our lending product, we can confirm that we have been attending to very real and relevant needs of the population, a key indicator that we are advancing on the right path.”

“We firmly believe that we have an opportunity to grow and fill the voids that actors in the traditional financial industry have not wanted and have never been known to fill. For this reason, our ability to form strategic alliances with first-rate partners is fundamental to our mission,” Rossi added.

Mambu’s SaaS platform offers maximum flexibility and speed, enabling fintechs to interact with banks, other fintechs, regulators and partners involved in origination procedures, vetting and processes to enhance and improve the availability of financial products to millions of Chileans.

By building with Mambu, Mento gains greater flexibility to swap out technological components as required, avoiding vendor lock-in and wholesale re-platforming issues.

Martha Malaver, Mambu’s Country Manager, said: “Mambu recognised early on the fundamental role financial technology companies like Mento play in improving financial inclusion and more comprehensive and sustainable economic development.”

“Technology is at the forefront of these efforts, and Mambu provides the digital core to support entities like Mento who will make a positive difference. Mento’s customers will grow in number, while the products and services they demand will grow in complexity going forward. We will be there to support as they embark on this exciting journey.”

Looking ahead, Mento plans to expand its offering and become a regional player in Latin America’s financial services industry. New products and services such as updated payment buttons and the use of physical cards will empower countless unbanked and underbanked individuals, once shut out of the formal economy, to bank and borrow more easily and efficiently. A full rollout is expected in March 2022.

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