Few times a business model from another continent has had such rapid and wide success in Mexico as in the case of CreamFinance. This fintech, leader in non-bank digital consumer loans, was born in Europe about a decade ago. In 2016, it chose the Mexican market to start its expansion in Latin America. Since then, business growth in the country has been very fast, becoming its second largest market in the world. Now it reinforces its presence in Mexico, while changing its brand to AvaFin Group.
This story begins in Latvia in 2012, when two young entrepreneurs saw a business opportunity in applying modern fintech technologies to traditional financial services. The company they founded expanded to several countries and was designated as the fastest growing fintech in Europe in 2016.
That same year, the company chose Mexico to land on the American continent due to the potential they detected in this market. Again, they were right; six years later, CreamFinance México has over one hundred employees and has become the second most important market for the financial group. To date, more than 700,000 loans to Mexican customers with its consumer brand Lendon.mxin many cases consumers who could not access traditional banking services.
In this new stage, CreamFinance changes its name to AvaFin Group, name with which he has unified the brands he used in different countries. At the same time, he plans to strengthen his presence in Mexico and continue to grow with new financial services based on the most advanced fintech technology on the market.
The potential of fintech in Mexico
Although when talking about fintech it is common to think of places like Silicon Valley, the truth is that Mexico has earned a well-deserved position at the top of this market.
Currently operating in the country more than 500 companies focused on the application of new technologies to the financial sector (what is known as fintech), which have close to 5 million users. Unlike other countries, where the traditional banking system dominates and fintech companies barely aspire to control 10% of the market, various analysts believe that their share could reach 45% in Mexico.
The success story of AvaFin Group, hitherto known as Cream Finance Mexico, supports this potential. When the company arrived in the country in 2016, there was notable suspicion in the market towards credit services aimed at individuals.
However, it soon earned the trust of consumers due to the company’s philosophy, which can be summed up in one sentence: “We put the money at your disposal”. And it is that the group’s mission is to provide customers with quick and convenient access to the money they need, operating through the Internet and without having to travel.
Online credits in 2 hours, with a responsible philosophy
In this task, the innovative technology developed by AvaFin Group plays a fundamental role. For one thing, it uses smart data analytics to get fast and accurate credit scores from customers. This allows the automation of processes in order to expedite requests. 96% of clients who see their requests approved receive the money in less than 2 hours. The use of technology also allows guarantee compliance with the Personal Data Protection Law.
In addition, AvaFin Group applies a responsible business philosophy in all its markets, in which clients have access to financial products adapted to their situation and needs. In this way, over-indebtedness is avoided and the risk of default is reduced. To this is added a transparent information about the products and a customer service always available to answer any questions.
“We know that many people have suffered abuse and fraud by unscrupulous companies and scammers; We want to be a safe place for our clients, so that from any part of the country they can access a loan without having to leave home, in addition to giving them accessible options to settle their loan and the possibility of having better conditions and a good history. of credit”, summarizes Amanda Ochoa, General Director of AvaFin Group in Mexico.
Credit solutions for all needs
Based on this responsible credit philosophy, AvaFin Group currently offers four financial services in this country. The first, and most popular, are the short term loans, which make it possible to cover specific financing needs (for example, to buy a good). This product is highly valued for the simplicity and speed offered by the service model based on the Internet and digital technologies.
For clients who have recurring financing needs, AvaFin Group offers the product of credit line. This modality allows access to a certain volume of funds over a period of time to cover different liquidity needs, providing more flexibility and convenience to customers.
The third product that AvaFin Group makes available to Mexican clients is a credit card to make secure purchases online. It does not require a bank account and allows you to pay in most e-commerce stores in the country. Customers use it to make online purchases and pay unexpected expenses.
Finally, thinking of clients seeking access to broader financing with favorable conditions, Avafin Group offers its installment loans. They allow you to have more capital, paying it in the most comfortable way through lower monthly installments than those of a short-term loan.
One of the best companies to work for in Mexico
Avafin Group has offices in Mexico City, where it works a team of 107 people. It is a young, international and diverse workforce, in which 57% of the employees are women and the average age is around 35 years. At the head is Amanda Ochoa, who has directed the Mexican subsidiary since the middle of last year.
The company offers development and growth opportunities to its staff, which allows it to maintain high levels of staff motivation. It also makes a special effort to retain talent, the key to the company’s success in the market.
This could be verified during the pandemicwhen despite seeing its activity affected, the subsidiary of AvaFin Group in Mexico kept 90% of its workforce in active. Since then, the company has adopted a hybrid work model that allows 95% of the team to continue working from home most of the time. They just have to come to the office periodically for training and feedback.
These and other policies have made AvaFin Group a One of the best companies to work for in Mexico. In 2019, the Mexican subsidiary obtained the prestigious recognition as “Best Employer” granted by the international consultancy AON.
“We have remained strong and consistent in our market presence, while other companies have come and gone rapidly. This has allowed us to maintain the trust that thousands of clients have placed in us. Our team has worked hard to improve processes and customer experience. In addition, we have risk analysis systems that allow us to maintain a healthy balance and we are present in five other countries, which provides us with a global vision of market trends and the possibility of sharing best practices.”, sums up Amanda Ochoa as keys to success.
Growth plans and new fintech services
Currently, AvaFin Group continues to strengthen its team, with new vacancies available in the area of sales, customer service and collection, in order to maintain the growth rate.
“We continue to bet on Mexico and we believe that there are still great opportunities to be developed. The expansion of new financial technologies has been a help to many consumers, especially after the changes caused by the pandemic in business and labor dynamics. We have been an ally for those who were left without financial support, and we want to continue being the option for those who do not have access to traditional banking”, concludes the General Director of AvaFin Group in Mexico.
And the story does not end here. It has just arrived in the Mexican market. Esketit, a novel platform powered by one of the co-founders of AvaFin Group. It allows small investors to participate in the non-bank lending market through the P2P (peer-to-peer) model. To date, it has processed over $170 million in investments, with a current average return of 13.72%. In addition to the thousands of consumers who benefit from these technologies, Mexican investors now also have the opportunity to participate in the fintech market.