Alternate information SME microfinance

Financing

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Alternate information SME microfinance
Alternate information SME microfinance
Emerging financial technology to take advantage of alternative information to support credit scoring and expand SMEs’ access to credit
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Financials
Corporate and Retail Banking
Business Model Description

Take advantgae of emerging financial technology and innovations in traditional business models for the information generated by the growing social and economic activities (e.g., e-commerce transactions, invoice data, and customer surveys) to support credit scoring, financial education to expand SMEs' access to credit.

Expected Impact

This initiative intends to support credit scoring and financial education to expand SMEs' access to credit.

How is this information gathered?
Updated: 4 Aug, 2021 Date of Production: 1 Oct, 2020
Colombia
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Reduced Inequalities (SDG 10) Partnerships For the Goals (SDG 17)

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Sector Sources
  • 1) ElEspectador (2019) - El 62% de las PYMES colombianas no tiene acceso a financiamiento. Accessed June 10th 2020 2) Asobancaria (2018) - Supervivencia de las MiPyme: un problema por resolver. Accessed June 15th 3) Asobancaria (2016) – Regulación y gestión de riesgos financieros. Accessed June 10th 2020 4) DNP (2005) – Censo económico. Accessed June 11th 2020 5) Bancoldex (2020) – Portafolio líneas de crédito para enfrentar el Covid-19. Accessed August 21st 2020 6) Giang et al (2019) - The Causal Effect of Access to Finance on Productivity of Small and Medium Enterprises in Vietnam. Accessed August 21st 2020 7) Digital Holding: https://holding.digital/. Accessed February 8th 8) Konfio: https://konfio.mx/. Accessed February 8th 9) First Circle: https://www.firstcircle.ph/about/our-story. Accessed February 8th 10) Pomona Impact's Portfolio: ePesos - https://www.epesos.com/acerca-de. Accessed February 8th. 11) La República (2020) - El índice de inclusión financiera de Colombia se ubicó en 85,9% a finales de junio de 2020 12) Banca de las Oportunidades (n.d) Who are we? 13) Colombia Fintech (2018) - Invertir en Fintech, una oportunidad en Colombia 14) Colombia Fintech (2016) Fintech Companies in Colombia: an investment opportunity with potential growth 15) Rodriguez (2015) - Las barreras para acceder al crédito formal dificultan la subsistencia de los microempresarios 16) Cano et. Al (2014) - Inclusión financiera en Colombia 17) MinComercio (2019) - Sistema Nacional de Apoyo a las micro, pequeñas y medianas empresas. Plan de Acción 2019 18) FCI (2020) Annual Review 2020 19) EMIS (2019) Colombia insurance sector 2020/2021
IOA Sources
  • 20) El Mundo (2014) – Colombia es tercero en el mercado de factoring. Accessed May 22nd 2020 21) Mesfix (2019) – Crowdfactoring: qué es y cómo funciona. Accessed May 21st 2020 22) Plan Nacional de Desarrollo (2018 – 2020) 23) Colombiafintech (2019) - Fintech en el Plan Nacional de Desarrollo de Colombia. Accessed May 22nd 2020 24) Legis (2019) - Esta es la propuesta de reglamentación del 'sandbox' regulatorio. Accessed May 22nd 2020 25) Colombiafintech (2019) - Overview of Fintech in Latin America: Startups, Funding and Opportunities. Aceesed May 21st 2020 26) Forbes (2019) - Auge de constitución en el país de empresas ‘fintech’. Accessed May 20th 2020 27) National Planning Department (2019) - 2030 Agenda in Colombia 28) ColombiaFintech (2020) Government regulates circulation of the electronic sales invoice as a security in Colombia 29) LatamFintech (2020) The new rules for Crowdfunding in Colombia 30) Legis (2020) Government regulates the issuance of debt securities in the stock market by SAS 31) Colombia Fintech (2020) 62% of Colombian SMEs have no access to financing 32) MisionPYME (n.d) The regions speak 33) DNP (2005) – Censo económico. Accessed June 11th 2020 34) La República (2019) - Mipymes representan 96% del tejido empresarial y aportan 40% al PIB 35) La Republica (2019) - Al menos 10,7 millones de colombianos ganan el mínimo o menos actualmente 36) Franco-Ángel et al. (2019) Caracterización de las pymes colombianas y de sus fundadores: un análisis desde dos regiones del país Estudios Gerenciales vol. 35, N° 150, pg. 81-91 37) Portafolio (2019) - En el país, seis de cada 10 empresas son informales 38) Colombia Fintech (2020) - Congreso de Colombia aprueba fast-track de licencias para Fintechs