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[Guide] Open Banking Use Cases in Latin America OPEN BANKING USE CASES

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[Guide] Open Banking Use Cases in Latin America OPEN BANKING USE CASES [Guide] Open Banking Use Cases in Latin America OPEN BANKING USE CASES Guide Introduction Open Banking Open Banking goes beyond the access to bank Improve the user experience data. It is the foundation on which innovative use cases Sometimes users are frustrated by the complexity fintechs can create better experiences and products of onboarding flows and questionnaires. Through for their customers. Open Banking, their experience is made better and easier from start to finish. Want to implement an Open Banking strategy but don't know where to start? Neo-banks can auto-fill the data that their customers have in the banks, instead of asking Identifying your customers' problems and how to them to fill out forms manually and in several steps. solve them can directly impact your sales, customer satisfaction and user experience. Reduce dropout rate You are interested if you are... Boost sales When users sign up for an application, they find a lot of obstacles to register, and sometimes, they decide If you offer your customers exactly what they need, Neobank, Bank, to abandon the process. This is the first contact it will directly impact your sales numbers. with a product for a user, hence the importance of Personal Finance doing it automatically so that the user does not For example, a lender can improve conversion have to do it by hand. in its sales funnel by having more accurate app, Lender, information about its users, thus improving the For a lender, instead of asking for payroll receipts quantity and quality of data. Wallets in PDF format and having your client go to their bank to get that information, you can connect all that information inside the app and avoid potential fraud. 2 OPEN BANKING USE CASES Personal Finance Benefits Create more Connect all your bank accounts in one place: get all your customers' bank and tax data in one place and personalized in just seconds. financial Instantly updated data: receive the latest update of your customers' data to offer them a better service. Increase your users' financial health Understand your customers better and help them to through account aggregation, better improve their money management in a faster and spending analytics and proactive easier way. recommendations. Boost sales: By eliminating friction and providing a better user experience, you increase the user engagement to your service while increasing the chances for product or services recommendations. "Experts predict that 樂 the Fintech market in Latin America will Did you know: Belvo offers alternative sources of financial exceed $150 billion by data, to access other non-bank 2021" financial information providers, such as Uber, Rappi or the SAT in Mexico. 3 OPEN BANKING USE CASES About Heru Heru Case Study “We couldn't have Powering Heru’s In Mexico there are almost 5 million people who started Heru without work driving, delivering food, parcels and other gig-economy services through different applications. However, Belvo's support their way of working and generating income does financial not allow them to access the services and benefits to access reliable, that a worker with a formal contract would have. products Heru improves the conditions of independent consistent and workers by building, through technology, services and benefits according to their needs Personal Finance uniform financial data. and lifestyle. https://somosheru.com Mexico Its full coverage of Problem bank, fiscal and gig- Heru is building revolutionary financial products for gig economy workers in Mexico. For its bancarised economy platforms users they lack proper access to reliable data upon which to build its risk models. For its non- has been instrumental bancarised users, they don’t have data to build risk models. to us” Solution Thanks to Belvo, Heru is able to access bank and fiscal data for some of its users and run it through their models. For the majority of its non-banked gig economy workers, Belvo’s access to alternative data sources (e.g. Uber or Rappi payouts and earnings) provides one-of-a-kind data not accessible anywhere else. Mateo Jaramillo, CEO 4 OPEN BANKING USE CASES Credit Benefits Issue credit with Access your client's entire financial situation: Use account aggregation to access your customer's According to Kore better financial account data and understand their finances in real time. So you don't have to rely on outdated Fusion, credit data financial records. companies represent Reduce manual processes and costs: Offer each customer the best deal and reduce the risk to 24.5% of total fintechs your business. In addition, by eliminating manual Build innovative and secure processes, you improve the customer acceptance in Latin America experiences for borrowers. Reduce rate and user experience - you no longer have to your fraud risk and improve your provide paper documentation. scoring, while decreasing manual workload. Improve your scoring capabilities: accurately assess each customer's spending and overall financial situation, so you can make lower-risk credit decisions. 樂 Did you know: Belvo connects with +90% of personal and business bank accounts, as well as tax institutions. 5 OPEN BANKING USE CASES About askRobin askRobin Case Study “Belvo's cutting-edge Making better loan askRobin is a free loan search engine that works technology, industry recommendations through a chat called "Robin". Since 2017, Robin helps millions of people to get loans and uses know-how and top- automatic learning to know the user better and offer the best loan recommendations according to their notch support has Marketplace para prestarios profile. https://www.askrobin.com/ enabled us to connect Mexico and Colombia to the majority of Problem They rely on multiple forms and self-reported banks in Mexico and information during the onboarding to assess risk and make recommendations. truly enhance our product. Solution Belvo has helped askRobin to better profile their users and make more tailored loan recommendations. They have shortened their onboarding process and replaced many forms with the Connect widget to extract real and much more rich financial data they didn’t have access to before. Rain Sepp, CEO 6 OPEN BANKING USE CASES Accounting and ERP Automate your Benefits accounting Save hours of work by automating the management of your customers' accounting and invoicing. Reduce manual errors and costs via Boost efficiency with real-time access to verified automated accounting, simplified financial information. expense management and smoother invoicing. Experts predict that fintech companies will be able to represent up to 30% of the Mexican banking market in the next decade 樂 Did you know: At Belvo we use bank-grade standards and encryption algorithms to ensure data security. 7 OPEN BANKING USE CASES About Enconta Enconta Case Study “Belvo is helping us Automating Enconta offers a service of accounting, invoicing automate our processes accounting and payroll. All of this is supported by its digital platform, where users can track their statement without the need to reconciliation submission, stamp and manage their invoices. deal with the legacy Problem systems of banks.” Online Accounting / ERP https://enconta.com/ Enconta operates one of the leading online Mexico accounting & ERP platforms in Mexico. They still rely on manual reconciliation of bank statements at the end of every month to present their customers with an updated accounting picture. Solution Belvo helps Enconta automate its bank account Angel Buzany, CTO transaction reconciliation, thus saving hours of manual reconciliation work and reducing the risk of errors. Enconta is able to fetch transactions in all of its clients’ bank accounts through the Belvo API. 8 OPEN BANKING USE CASES Onboarding Simplify Benefits According to onboarding Improve the user experience: your customers will Finnovating, Fintech flows in your be able to connect to their banks without having to search for their account numbers and enter them investment in Latin app manually. America reached Increase conversion: if the sign up process is faster Auto-fill application forms and and easier for your customers, you will see an $2.7bn in 2019 instantly validate the owner of any increase in the number of users who sign up and do account to streamline your KYC not leave the registry at first. processes. Reduce errors: by automating the processes, you avoid human errors and optimize time. Instantly verified information: since the data comes directly from the users' banks (after completing the customer authentication), they can be trusted, no need to wait days to verify the information. 樂 Did you know: In just a few seconds your customers can connect to all their financial data 9 OPEN BANKING USE CASES About Nelo Nelo Case study “We leverage Belvo Helping to better Nelo runs an app and debit card they distribute in for identity verification profile users Mexico. and underwriting. Problem We've really enjoyed They need to verify user identity as part of their KYC process. They also issue out loans to their users Neobank working with the and don’t have a good and frictionless way to https://www.nelo.mx/ access reliable data for underwriting. Mexico team! They put their customers first and Solution have built a great For users that apply for a loan - even if they don’t have transactionality with the Nelo debit card - product. Looking Belvo provides quality and reliable data that can be used for underwriting and risk modelling. Loans forward to continuing are now approved in minutes as opposed to days. to work with them! Kyle Miller, CEO 10 OPEN BANKING USE CASES How it works for your All the data you Access different type of information through our need products: customers Banking: Access +90% of bank accounts in Latin 1. The customer chooses which bank to connect America to deliver more engaging experiences. 2. The customer completes the authentication process with their bank Fiscal: access fiscal data and turn it into meaningful 3.
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