Listo! announced that it is celebrating Cinco de Mayo with the launch of its consumer financial services to provide equitable financial products to millions of Latino borrowers in the US.
“We democratize access to fairly priced, life-changing financial services for millions of Latino and often ‘credit invisible’ families in the US,” said Samuel Ulloa, Co-Founder and CEO, Listo!
What is the strategy behind the new program by Listo!?
According to Ulloa, the digital marketplace continues to grow and there are proven players like Upstart (NASD:UPST) that went public at a market capitalization of $1.45 billion, creating alternate solutions to measure borrower risk in a more equitable manner, and offering a series of essential financial services including credit, auto and life insurance.
Through its marketplace, it also brings credit unions, banks and insurance carriers closer to the Latino market in the US, also an underestimated market, standing at $2.6 trillion, making it the 8th largest GDP in the world and growing 57% faster than the United States GDP.
“I decided to start Listo! to help millions of hardworking families, like my parents, in marginalized communities get a fair chance at achieving the American Dream. We built the Listo! platform to help mainstream financial services companies reach this underserved community, which continues to fuel economic growth in the US,” commented Ulloa.
What is the market reach of Listo!?
As of 2019, 12.2% of Hispanic households in the United States were unbanked, compared to 2.5% white households, per Federal Deposit Insurance Corporation (FDIC) surveys. A big blocker for customers looking to build credit today is accessing a fair and true depiction of the risk of a loan. Instead of over-relying on FICO scores, Listo! Aims to create a better model.
Listo! has already helped many families save over $100m in loan interest and auto insurance related fees when compared to other options available with little or no credit history.
Founder and CEO Samuel Ulloa, a former executive at now publicly-traded financial services company, Oportun understands this challenge well. His former company worked to provide affordable loans to people with little or no credit. Providing Latino communities with access to financial services has been a mission of his as a first-generation Mexican immigrant.