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Kiwi secures USD 80 mln

Tuesday 23 May 2023 13:38 CET | News

Kiwi has secured USD 75 million credit facility and USD 4.5 million in pre-series A funding to aid consumers in building credit history and financial literacy.

The funding was supplied by i80 Group, an investment group that specialises in providing credit solutions to growing firms, while the equity round was headed by Advent-Morro Equity Partners, Altio Capital, and Independent Capital.

Kiwi secures USD 75 million credit facility and USD 4.5 million in pre-series A funding to aid consumers in building credit history and financial literacy.

The firm is about to enter an exponential development phase, thanks to additional finance and increased demand. The company intends to launch new products in order to position itself as the major platform through which underbanked Latinos may access a greater range of financial services.

Kiwi seeks to deliver accessible solutions that assist people establish credit, enhance financial well-being, and unleash larger prospects for their future through new technology and educational tools. Kiwi demonstrates its commitment to financial literacy by providing individuals with the knowledge and resources they need to enhance their financial well-being.

Kiwi intends to utilise the funds to grow its services and reach more clients in the US and Latin America.

The underbanked Latino population

Kiwi is devoted to tackling the financial issues that millions of Latino customers in the US confront. These people frequently lack credit history and are thus excluded from the regular financial system. Kiwi uses unique AI and machine learning techniques to provide inexpensive financing to thin-file borrowers, allowing them to establish credit profiles and manage daily costs.

According to market figures, Latinos in the US are the fastest-growing and biggest minority group, accounting for more than 18% of the overall US population. With over 60 million Latinos in the US alone, this figure is anticipated to exceed 100 million in the future decades. When compared to global economies, the Latino GDP in the US ranks sixth.

Language challenges, insufficient financial knowledge, immigration status worries, and a lack of valid identity documents, on the other hand, contribute to the underbanked condition. This lack of access to banking services not only impedes Latino economic growth but also perpetuates existing socioeconomic inequities, emphasising the importance of addressing these obstacles and promoting financial inclusion in this varied population.

Other fintechs targeting underserved communities

The growth of fintech startups in recent years has created chances to bridge the gap between the Latino population and conventional financial services in the US. These business owners recognised the unique needs and difficulties of the Latino community and specialised their services to this neglected market. These fintechs strive to promote financial inclusion and enable Latinos to access vital banking and financial services by utilising technology and innovative ways.

NerdWallet, a personal finance platform that has been crucial in supporting the Latino population by providing educational materials, financial counselling, and comparison tools in Spanish, is one example of a fintech servicing the Latino community. NerdWallet recognises the importance of language accessibility in fostering financial literacy and inclusivity as part of its goal to enable consumers to make educated financial decisions. NerdWallet provides Latinos with the knowledge and skills they need to navigate the financial environment and make educated decisions that match their financial objectives by providing Spanish-language content and tools.


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Keywords: fintech, funding, financial services, artificial intelligence, machine learning
Categories: Banking & Fintech
Companies: Kiwi
Countries: United States
This article is part of category

Banking & Fintech

Kiwi

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