Klar, a fintech for those who don’t like banks

Klar is preparing to arrive in Mexico. They recognizes a need for credit and debit cards in the Latin American country.

In the Mexican digital economy, fintech maintain constant growth. In Latin America, Mexico is the second country with the most startups. More than 300 companies are offering innovative financial services. Also, since March 2018 the fintech law was signed, which provides a regulatory framework and gives legal certainty for these companies.

In this growth environment, Klar is preparing to arrive, which recognizes a need for credit and debit cards in the Latin American country. In the next few days, the unbanked population will begin to receive this type of products.

In Mexico, 68% of the population has financial products. This proportion is higher than the total in Latin America, where only 46% of the population is banked, but it is still far from the levels of developed countries, where 90% of the economically active population has access to financial services, as they are bank account or credits.

Stefan Möller, CEO of the startup, specifies that in the current month (April 2019) they will launch their credit and debit card products, in an alliance with MasterCard and complying with the regulations of the Bank of Mexico which, he says, allows to open basic accounts with its support.

Klar intends to deliver 25,000 accounts in the first year of operations in the country, and from there grow exponentially. This projection is realistic. Although Mexico has observed stagnation in banking penetration, the Fintech sector has grown in double digits.

Klar offers a cheaper, more accessible and more agile alternative than banks since all processes are entirely digital. In an interview for El Economista, Stefan Möller stated that “it can be done in four minutes fulfilling the requirements. It is an advantage because we have all experienced the pain of standing in a branch; it is much easier for the user; Your account is approved in four minutes; If you want to apply for a line of credit, it is also digital and in a matter of minutes, “he says.

On credit cards, he added that no annuity would be charged. Cashback will be offered to promote its use instead of a system of points that in general do not please users. The card is authorized digitally if the user complies with the requirements.

In Möller’s opinion, banks have failed to be close to users. This lack is the area of opportunity that Klar wants to take advantage of: making everything easy, cheaper and transparent. “Use technology to be closer to the users, to ask them, to know what is missing.”

Application at the CNBV, in process

To comply with the requirements established by law, Klar is in registering process with the National Banking and Securities Commission (CNBV). The conditions are quite reliable.

“The first ones (fintech) already formally put their request, which does not mean they are the only ones. We are in that process and in making the required adjustments, and in September is when they will begin to deliver the licenses, “he explains.

Regulation for fintech, very positive

For Möller, the Fintech law is a positive and opening signal from the CNBV.

“Legislation is a success story. Now regulator entities have to show that success stories arise from it. The law itself has many merits, but now it has to translate into success stories, especially on the consumer side. The product is facilitated by a simple, agile, light, more efficient structure and where we are returning part of that efficiency to the user. As long as we comply with the requirements, it is a success story for the regulator. We have seen quite an opening; there are people who want to see this kind of stories “, he emphasizes.

User can request debit and credit card at Klar’s website.

Interview with CEO of Klar (in Spanish).