Yotepresto: Crowdfunding Maintains Growth Potential

In a panorama of investment offerings that are increasingly diversified by options such as Popular Financial Companies (Sofipos) that offer high returns, the crowdfunding segment sees an opportunity to grow its investor base.

The Collective Funding Institution (IFC) Yotepresto indicated that despite the competition from these emerging entities, crowdfunding will maintain its competitiveness, once Banco de México (Banxico) begins to lower the reference rate.

“It is a period in which entities will adapt little by little, as inflation recedes. There the advantage will not focus on offering six or seven points of difference against the risk-free rate, on the contrary, it will be because of the ease that they will give to users,” said Luis Rubén Chávez, executive director of the IFC.

According to Banxico figures, Yotepresto is the largest IFC specialized in personal loans in its segment

Internal figures from the platform Yotepresto show that it has facilitated 3,234 million pesos since the beginning of its operations, in 2015.

However, Chávez pointed out that after almost 10 years of operation, Yotepresto’s objectives point to greater growth in users and increasing monthly placement volumes.

“Now the challenge is to grow 100 times more, we are placing close to 100 million pesos per month and we seek to reach 10,000 million pesos of placement each month,” said Chávez.

The manager added that crowdfunding platforms are seen as a complement for those who already have investments in other institutions, which is why they see possibility in the public that has recently been banked by new players.

“In the distribution of an investor’s products, we want to offer that fixed income, with high interest rates and compound interest, a collective financing product is difficult to replicate, because the business model cannot be replicated by anyone who does not is within the regulatory framework,” commented Chávez.

According to information from Banxico, of the 25 Collective Financing platforms that are authorized under the Fintech Law, seven specialize in personal financing.

Debt consolidation for Yotepresto

On the other hand, Yotepresto pointed out that the majority of the financing granted is intended for debt consolidation, because it allows users to reduce the interest they pay on several loans, by unifying them into a single one requested from the IFC.

According to information from the platform, 65.8% of the loans were allocated for debt consolidation.

“It is to consolidate basically bank debts, it is a real issue that people use us to get out of toxic debts and to improve their personal finances,” explained the manager.

According to the latest Banxico Financial Stability Report corresponding to December 2023, financing granted through debt IFCs showed a growing trend with an annual increase of 11.6% and a quarterly growth of 11.7 percent.

However, non-compliant financing was relevant for some institutions, with levels close to 30%, in the case of Yotepresto this amounts to 4.47% of the total accumulated financing.

(Featured image by Alexander Grey via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in EL ECONOMISTA. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us

J. Frank Sigerson is a business and financial journalist primarily covering crypto, cannabis, crowdfunding, technology, and marketing. He also writes about the movers and shakers in the stock market, especially in biotech, healthcare, mining, and blockchain. In the past, he has shared his thoughts on IT and design, social media, pop culture, food and wine, TV, film, and music. His works have been published in Investing.com, Equities.com, Seeking Alpha, Mogul, Small Cap Network, CNN, Technology.org, among others.