Ábaco is a high-impact startup that focuses on democratizing the financial market for those who work in the gig economy. An estimated 70% of over 15-year olds in Latin America do not have access to banking services due to an absence of credit history.
“We believe in the Ábaco model because it is a project with an aim: to open up the traditional banking market to the hundreds of millions of people who do not have access to banking credit,” said Oriol Ríos, Director of Corporate Development at Latina.
The Ábaco software analyzes the financial profile of customers affiliated with delivery platforms or freelancers to identify their behavior and builds them a credit history. They then grant ‘microcredits’ ranging from $5,000 to $50,000 with extremely low-interest rates.
“The traditional banking system works on a basis of credit scores that don’t take into account the particular situation of those who work in the gig sector. Financial inclusion is only possible through a consideration of the personal labor situation of each customer to determine their financial needs,” said Victoria Blanco Alegría, founder and CEO of Ábaco.
Read more in Business Wire.