Intervention(s)
Galgo, a Fintech company operating in Colombia, Mexico, Peru, and Chile, offers motorbike loans through an online platform as well as face-to-face at point of sale (POS) locations, enabling clients to access credit seamlessly through their preferred channel. What distinguishes Galgo from other Fintechs is its unique business model, which was specifically designed to address the challenges migrants face in accessing credit. Initially focused exclusively on serving migrant clients, the company has since expanded its reach to include a mixed portfolio of both native and migrant customers in each country.
In order to minimize credit risk, Galgo employs a novel risk-scoring procedure that integrates diverse financial data sources from both origin and destination (host) countries to thoroughly evaluate each loan application. This process goes beyond traditional credit assessments by incorporating a broad spectrum of variables. In addition to basic demographics (such as age and gender) and the specific attributes of the motorbike the client aims to acquire, Galgo leverages detailed information about the applicant's debt history, traffic fines, and driver license characteristics—sourced from both their origin and host countries. These factors are carefully weighted within a dynamic and adaptive risk-scoring model that continuously refines its predictions based on evolving data patterns. By adopting this comprehensive and data-driven approach, Galgo ensures that motorbike loans are extended with fair and reasonable credit conditions, making financing accessible to immigrant and vulnerable populations who often face restrictive terms or outright exclusion from traditional banking institutions.