Payments

Blu Financiero announces credit card that doesn't require credit history in Mexico

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August 5, 2024

Blu Financiero, a fintech company based in Mexico, introduced a mass market credit card with a 99% approval rate and no credit history required. The waitlist included more than 50,000 users for the card, according to a press release.

The company aimed to help the financially underserved population in Mexico. In particular, only 14% have access to credit cards and 30% have a formal credit history.

"We see a classic oligopoly problem where four of the top five banks control 70% of the deposits but are all foreign-owned. With Mexico comprising less than 5% of their global balance sheets, these top few banks hold little incentive to develop the unique technology required to serve the growing middle class and mass market," Casper Yonel, CEO of Blu, said in the release.

The credit card uses AI underwriting to process traditional and alternative data points to make credit decisions at the application and in real-time.

"Our company is in the right place at the right time — with most of our customers having access to a smartphone and internet connection, we are able to extract large-scale behavioral data and build hyper-personalized models that tell a story about our customers otherwise overlooked by traditional banks," Paul Thomas, CTO of Blu, said in the release.