$1.5 million loan will benefit more than 300,000 migrants
IDB Lab, the innovation laboratory of the Inter-American Development Bank (IDB), will provide a loan of up to $1.5 million to the Chilean fintech, Migrante, to mitigate economic vulnerability and improve migrants' access to loans and financial services. The loan will contribute to the expansion and internationalization of the company and will benefit more than 330,000 migrants, mainly Venezuelans, in Chile and Peru.
In Chile, Migrante offers financial products, designed to meet the specific needs of migrants. Its "banking for entrepreneurs" services include credits for the purchase of vehicles and motorcycles, widely used as work tools to generate income with urban mobility, home distribution, and logistics services. Additionally, Migrante offers "banking for people" services, such as credits for the homologation of professional degrees, housing rental guarantees, and, to a lesser extent, consumer credits that help migrants to furnish their homes with basic equipment.
The adaptation of Migrante's credit qualification and allocation methodology to the peculiarities of Venezuelan migration allows beneficiaries to obtain a loan, even if it is initially small, quickly. The transactions are carried out by digital means, such as a cell phone or computer, avoiding travel. In addition, the Chilean fintech has developed automated systems that facilitate the collection of its clients and compliance monitoring with their financial obligations, resulting in an efficient and sustainable collection and recovery process. Its value proposition is based on the construction of a community with the ability to develop additional products and services that accompany migrants throughout their journey.
This loan from IDB Lab will allow Migrante to support the expansion and internationalization of its services to other countries in the region, starting with Peru, where the number of displaced Venezuelans is even greater than in Chile. In addition, it will pilot new financial products to reach segments of neglected immigrants, particularly immigrant women, making it easier for them to generate job opportunities in branches related to their qualifications or in ways that contribute to and improve their family’s well-being.
IDB Lab has developed other projects in support of migrants, such as those articulated in the "Better Together Challenge", an initiative launched in collaboration with USAID, the United States Agency for International Development, to identify, finance, and scale innovative solutions that support Venezuelan migrants and their host communities in Latin America and the Caribbean.
About IDB Lab
IDB Lab is the innovation laboratory of the IDB Group, the leading source of development finance and know-how for improving lives in Latin America and the Caribbean (LAC). The purpose of IDB Lab is to drive innovation for inclusion in the region, by mobilizing financing, knowledge, and connections to test early-stage solutions with the potential to transform the lives of vulnerable populations affected by economic, social, and/or environmental factors. Since 1993 IDB Lab has approved more than US$ 2 billion in projects deployed across 26 LAC countries. www.idblab.org
Migrante is the first and only financial institution focused on migrants in Chile. Through technology, we seek to get to know migrants and work to give them better opportunities for integration and development by providing access to credit and financial advice that allow them to start businesses and improve their quality of life. www.migrante.com