“Banco!? Que es?” Gone are the days when you need to leave the comfort of your home to secure a loan. With just one click, Kueski, an innovative new startup, allows Mexicans to secure micro consumer lending within minutes. And as if that wasn’t enough, Kueski is doing this while also successfully aligning its business and operating models!
Why is Kueski so good at what it does? Kueski is an online platform that has taken the Mexican financial services sector by storm. Its mission is to disrupt banks, reshaping how Mexicans (and in the future, Latin Americans) think about obtaining credit. With more than 50 employees, the Company which has raised millions of dollars from Silicon Valley venture capitalists has experienced record growth of loan origination and shows no sign of slowing down. This record growth is due to the relentless pursuit to iterate, iterate, and iterate twice more until its operating model reaches perfection.
So here’s a quick overview of Kueski’s business model:
Kueski’s loan process is quick and simple. It’s top-of-the line automation process and sophisticated credit models make the user experience extremely satisfying.
Here’s a Kueski team member talking about the Apply and Approval processes defined above:
Source: Kueski’s YouTube page; subtitles added by author of this post)
Here’s what I like about the operating model:
1. Best-in-Class Technology: Kueski’s online platform is powered by a very sophisticated algorithm that does a better job assessing consumers creditworthiness than traditional banks! Its credit scoring technology is unique in that it analyzes traditional credit bureau factors in addition to information pulled from social media accounts. As a result of this improved credit scoring model, Kueski is able to secure lower default rates than traditional banks.
2. Low Cost Structure: The Company’s model is extremely asset-lite. Kueski does not have branches because all loans are made on-line. It also does not need to hire loan officers or large staff because all loans are automatically approved / denied by its highly-sophisticated computer model. Most of its workforce consists of engineers and customer service / collections. As a result, it has a lower cost base and is able to use these cost savings to offer lower interest rates to consumers.
3. Customer Acquisition: Kueski believes in an omni-channel approach and allows customers to secure lending either from a desktop or from mobile devices. Also, the Company uses a combination of both inbound and outbound marketing to target its consumer market. Its website, Facebook page, and Youtube page, provide great tips for consumers looking for general finance advice. So, even before a consumer knows that it wants a loan, they have already built a relationship with Kueski and this increases the chances that they will return to the website when they need financing.
It’s impressive that a company as young as Kueski is focused on aligning its business and operating models to create maximum value for its customers. Because of this alignment, Kueski is well on its way to changing the face of finance in Mexico and indeed Latin America.
Check out the website and let me know your thoughts… it only takes one click!
Source: Company website and conversations with industry experts; as of December 6, 2015
Disclaimer: The author of this blog post will not be liable for any losses, injuries, or damages from the display or use of this information. This blog post is for informational / discussion purposes only and makes no representations as to the accuracy or completeness of any information found by following any link on this site. This blog post solely expresses the author’s views and not that of Kueski, its employees, management, nor shareholders.