Mexican neobank Vexi announced the attraction of investment funds in the amount of $ 8 million following the results of the Series A financing round.
At the current stage of development, this neobank is a startup. A virtual financial institution offers its customers only credit cards. The startup is currently operating within the Mexican financial services market. The main efforts of neobank are aimed at enabling the opportunity to offer loans at a competitive rate to those consumers who, for certain reasons, do not have full access to funds.
The startup focuses its activities on those customers who do not have the opportunity to get a credit card from a traditional bank due to insufficient earnings or as a result of working without official employment.
Currently, in Mexico, only 10% of local residents have credit cards and only 20% of the population have access to any form of obtaining credit funds.
Vexi has created its own credit rating system and offers its credit cards through American Express, without third-party issuers or processors.
The startup provides interest-free installments, cash refunds, purchase insurance, and competitive interest rates in the country. Neobank also allows customers to pay with a credit card using only a mobile phone and provides information about financial education through its application.
Vexi will direct new financial resources to increase the customer base, expand the staff and improve the technology stack. The startup also intends to improve the risk management algorithm.
Gabriela Estrada, CEO of Vexi, said that the startup’s mission is to reverse the negative circumstance of many Latin Americans not having access to the first credit line.
Digital payment providers and fintech technologies have been actively introduced into the Mexican financial services market over the past few years. This is due to the fact that Mexicans are increasingly receiving these services online.
As we have reported earlier, INVEX Banco Launches Mexico-Based Neobank Now.