AUGUSTO ÁLVAREZ AND JOSÉ LUIS OROZCO
One of the fastest growing fintechs in Latin America today, AlphaCredit will continue to focus on using technology to increase financial inclusion in the region.
What opportunities did you identify in the market that motivated you to establish AlphaCredit?
AUGUSTO ÁLVAREZ There were many opportunities to take advantage because Mexico and Colombia have high levels of financial exclusion. What we wanted to do was focus on the fintech credit segment and the creation of credit opportunities. This is a huge opportunity we continue to see even 10 years later. When you look at credit penetration in the private sector as a percentage of GDP in both Mexico and Colombia, it is low compared to peer countries such as Brazil, Chile, and Peru. We saw a huge opportunity to use technology to increase financial inclusion through loans in Latin America.
What kind of strategies did AlphaCredit use to become one of the fastest growing fintechs in Latin America today?
JOSÉ LUIS OROZCO We are good at upscaling. There are things we think we do well, such as looking to the future and establishing the capabilities we will need in two years. Obviously, that is easier said than done and you need a company geared toward operating with constant change. Anyone who works at AlphaCredit will tell you that our constant is that we change everything. Adaptability is a key requirement for scaling up. This means your technology needs to adapt quickly and be set up in a way that allows for upscaling. Likewise, the talent, which is the most important thing, has to be adaptable and scalable.
What do you think of the profile of investors you have right now?
AÁ We have been fortunate to have great institutional investors since the beginning on both the equity and debt sides. AlphaCredit has lenders from international private and public markets. We issued debt on the Singapore Stock Exchange in 2017 and locally on the Mexican Stock Exchange. We have worked with pension funds from all over the world and many institutional investors that TBY covers in its publications. You need to set up your company with the right processes in order to attract such investors.
What does Mexico need to become a cashless country?
JLO From a technological point of view, we first need to make electronic transactions frictionless. Mexico also needs to work on adapting its legal system, so people are able to resolve disputes in the electronic and cashless economy. If people have an issue with a banking app, there is no efficient way of resolving that dispute with their bank, which means they are unlikely to use that app again and will go back to cash. There are positive things being done in Mexico to move people toward a cashless economy.
How far away is Mexico from digital wallets being the norm?
AÁ We are not that far away. I have been impressed by the number of small businesses, such as taco stands, that accept payments through Clip and Square. I am optimistic that this technology is what people will eventually adopt. There is certainly a generational gap, but people are catching up fast. Telecom, cellular, and 5G infrastructure in Mexico is not great, but it is much better in terms of coverage when you compare it to other countries, especially the US.
What are your main goals at AlphaCredit for 2020? Do you have international expansion plans?
JLO One of our main goals in 2020 is to continue our financial inclusion mission by targeting the independent contractor sector. This sector is growing in Mexico and Colombia; therefore, we have launched a product called AXS (Access) geared toward independent contractors who work in electronic platforms. We will continue to expand our penetration through those platforms in 2020. In general, we will continue to grow all of our other businesses, including the SME sector, which has the same dynamics.
AUGUSTO ÁLVAREZ AND JOSÉ LUIS OROZCO
TABLE OF CONTENTS
Focus
Inclusive development
Home to more than 22 million people, Mexico City is one of the most important cultural, financial, and educational centers in the world. While the lack of a coordinated approach to urban development has hurt the city's potential in the past, the current government is fully determined to promote inclusive growth and capture all the gains associated with urbanization.
read articleInterview
Alexis Langagne, North Latam Managing Director, Prosegur Security
With a cybersecurity firm, a guarding services firm, an electronic security systems company, and a video security company under its umbrella, Prosegur Security is the only company to offer a 360-degree security solution in Mexico.
read articleInterview
Rafael Fernando Marín Mollinedo , General Director, Public Decentralized Office of the Interoceanic Multimodal Corridor of the Isthmus of Tehuantepec
With the development plan of Isthmus of Tehuantepec in hand, Mexico will bring about greater economic development in the country's often-overlooked south.
read articleForum
Engineering
Each one of the three companies featured in this forum are known for disrupting the construction industry in their own unique ways. While Grupo Beck is a pioneer of the integrated delivery process in Mexico, Bovis is among the first companies to build high-rise buildings in the country. Sacyr Concesiones, on the other hand, uses infrastructure development as a means to promote equality.
read articleInterview
Fabrizio Feliciani, Regional Director, UNOPS
As the UN's special projects services unit, UNOPS' main goal is to support public institutions that are undertaking important infrastructure projects to contribute significantly to advancing a country or region's development agenda.
read articleInterview
Alejandro R. Paolini, Managing Director of Mexico, Central America & Caribbean, Siemens Healthineer
Siemens Healthineers' aim is to support the growth and development of Mexico's healthcare sector and help the government with innovative technologies, especially those that help treat chronic diseases.
read articleInterview
Yon de Luisa Plazas, President, Mexican Football Federation (FEMEXFUT)
Mexico's Liga MX is among the world's top-10 football leagues, and FEMEXFUT plans to push it into the top three by improving four key pillars, namely sporting success, sports justice, international relations, and social responsibility.
read article
