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Chile’s Destacame raises $3 million to boost consumer financial access

ImpactAlpha, March 4 – Santiago, Chile-based Destacame uses alternative credit-scoring to underwrite loans and offer basic financial products to underserved customers. The company’s Series A round was backed by Fen Ventures and existing investors Accion Venture Lab and Mountain Nazca.

Destacame launched in 2015 to improve access to finance for consumers with slim or no credit history. It offers consumer loans, credit cards, and free financial health tools from 25 financial services company, and uses alternative credit metrics like utilities payment history to generate a credit score to help consumers prove their creditworthiness. 

Forget FICO: How alternative credit-scoring is driving financial inclusion

Destacame’s technology has made underwriting more efficient, pushing interest rates for first-time loans below that of microfinance institutions in Chile. Also, because the Chilean credit authority only records negative financial behavior, Destacame offers lenders and creditors a clearer picture of consumers’ financial habits. 

The funding will be used to help it expand its products and reach in Chile and Mexico, where it collectively serves 1.3 million customers.

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