Square’s New Circle: Banking on Data

Square brought small business payment terminals into the modern day. The simple, clean Square dongle has become widely recognized as the icon of new-age payment. Now, the company is eyeing its valuable set of transaction data to make loans. Square’s visibility into otherwise secretive transaction data allows them to loan to business owners on the basis of business performance.

Could this be the future of lending?

Profitably lending to lower income households in Mexico

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Mexico´s largest microfinance lender, Banco Compartamos has more than 2.5 million customers with an average loans of US$360. Through an effective alignment of its business model and operating model, this lender has profitably served millions of lower income households by providing access to credit where other banks can´t reach.