BUSINESS MODEL
RapiCredit.com is an online fintech lender whose initial focus is short term, high cost loans to under banked middle class in LATAM. Our vision is to become a major player in loan origination in the Region; our initial market is Colombia’s middle working class (approx. 22M people who have bank accounts but have limited access to credit from traditional banking institutions), but we have a regional vision since day 1.
Facts
• Single Payment Loans and Installment Loans
• 75% of customers pay before day 30 (3.2 credits per customer)
• Clients pay us thru our webpage (60% thru electronic payment button in site)
• Less than 15% are thru automated debit process
• We do not buy leads – direct relationships with customers
• Credit bureau check for every new loan
• Algorithms pursue a strict affordability of credit
• All loans are for a maximum of 30 days, with the first time customers not being allowed more than $350.000 COP.
• Maximum loan to any customer is $500.000 COP. Our average loan is $90.
Market
Our customer base is very diverse, from students to professionals, including local civil servants, teachers and a variety of other professions, but we are initially targeting the employed and working middle class.
The average income of our customers is close to $500 USD, 50% are women and most clients are under 35 yrs old, single and living with family.
Ethics
RapiCredit has a documented ethical policy and will never lend more than 25% of a customer’s declared monthly income and will not allow more than one loan at a time for first time customers. Consistently, rollovers are not permitted.
We are currently serving around 3,500 loans/months, the hypothesis that customers will not spoil credit history for such a small amount of money has proven to be true and working. 90% of clients pay in full and less than 8.5% become in default credits.
September 2016