The startup has raised US$880,000 through angel investors and since its founding in 2022 to date has granted a total of US$1.9 million to its clients.
According to data from the National Banking and Securities Commission (CNBV) with information from June 2023, the Mexican market has more than 32 million credit cards. These increased by 5.4% in just 6 months, which shows rapid growth in the use of cards as the main financial tool for consumer loans.
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However, this growth has problems. Mismanagement and excessive spending have put many Mexicans in risky economic situations. They are forced to pay only the minimum on their cards so as not to accumulate interest, which creates a cycle of debt. In the end, they end up paying much more than what they had initially asked for.
The Mexican startup bzero Financial aims to free credit card users trapped in the endless interest cycle. Their approach is to pay off users’ debt each month, giving them a fresh start to the next period with no outstanding debt or interest.
The key lies in the collaboration between the financial company and the client: eThe client pays the minimum required, and BZERO covers the remaining balance, returning the surplus to the client. This pioneering strategy avoids the accumulation of additional interest, marking a notable difference from the common practice of paying only the minimum and perpetuating the debt.
With the purpose of providing a real response to the financial needs of credit card users in Mexico, Jorge Mata, CEO of the startup, highlights: “At bzero Financiera, we not only seek to eliminate interest, but also change the financial narrative. “We want our clients to stop paying only interest and begin to pay off their debt effectively, thus regaining control of their finances and economic stability.”
The beginning of the process to request the loan is requested on its website. From this step, a risk analysis is carried out considering hundreds of variables to evaluate the client’s profile. Once the customer registers, the acceptance response time is 24 to 48 hours.
The startup has raised US$880,000 through angel investors and since its founding in 2022 to date has granted a total of US$1.9 million to its clients. During 2024 they expect accelerated growth, as they will launch a technological solution that will help make their operations more efficient.
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2024-01-11 04:43:32
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