IDB Invest invests $5 million in MONI Online in its first operation with a Fintech company
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, made an investment of $3 million with the digital financial services company MONI Online, which operates primarily in Argentina. The financial structure includes the option to invest an additional $2 million in the company’s next round of equity.
The financing, which is IDB Invest’s first operation with a Fintech company, will allow the expansion of MONI's credit portfolio in underserved sectors and expand its product offering to continue developing the credit market. This operation complements the initiatives being carried out by the IDB Group to consolidate more inclusive financial services in the region.
Financial inclusion can be achieved by offering more efficient services based on innovative technologies, such as the mobile application developed by MONI, which is efficient and easy to use. The company's technology transforms the loan application process and the payment of telecommunications bills, public services and others. Its products are aimed at consumers typically not served by the traditional banking industry.
In Argentina, where the company has given more than 500,000 loans, its products include credits of up to six months and the payment of services and purchases for electronic commerce through its digital platform. This business is highly scalable in countries with low banking penetration and high penetration of mobile services. MONI currently operates in Argentina and Mexico. IDB Invest’s financing will allow MONI to expand its business prospects in both markets.
Fintech is the term used to describe companies that offer digital technology services to improve financial activities. They include new applications, processes, products and business models accessible to consumers through the Internet.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.
MONI Online is a digital financial services provider that operates in Argentina and Mexico. Its objective is to democratize access to financing and financial services to unbanked and underserved individuals in the banking industry. MONI has worked with more than 110,000 clients with a 100% digital operation, being one of the main providers of digital financial services. MONI currently offers overdraft, term credit and payment of services based on an efficient and pioneering digital platform.