Case Study: FinTech Innovation for Micro-Entrepreneurs in El Salvador

In recent years, the world has witnessed significant technological advancements, particularly in the field of finance. With these advancements, it has become increasingly important for financial institutions to leverage technology to achieve financial inclusion, particularly in underserved markets. A leading retailer and financial services provider in South and Central America partnered with us to better understand their customers and existing business lines and to identify areas of opportunity to build new products and overall innovation.

Problem

The problem that we identified was that commercial loans for small businesses are structured as fixed-term personal loans. This made it difficult for entrepreneurs to qualify for the loan, evaluate affordability, plan payments, and manage daily cash flow to ensure monthly payments. To address this issue, we helped create a financial innovation product that could help micro-entrepreneurs grow by giving them access to working capital in El Salvador.

Solution

We helped develop a FinTech product that provided retail store owners with access to revolving capital micro-loans to buy goods directly from their suppliers and help grow their businesses. The product allowed store owners to easily access these lines of credit through a mobile application at the point of purchase. We used alternative credit scoring factors and risk indicators, such as an analysis of their income and purchasing history from known suppliers in the region to support quick loan approvals.

Results

The pilot program of the new product yielded outstanding results. During the first few months, the product achieved a 30% product market fit and a net promoter score of 9. This demonstrated that the product was well-received and had a high potential for success. The product also helped micro-entrepreneurs gain access to working capital, which allowed them to grow their businesses and contribute to the overall growth of the economy.

The success of the pilot project serves as proof of the power of financial innovation to address real-world problems and improve the lives of people. It also underscores the importance of collaboration between corporations and partners like Rokk3r to drive innovation in their own sectors.

Contact us at info@rokk3r.com to learn more about how we can help your company to build new digital businesses and become digital leaders in your sector.