Areas of impact
Financial inclusion for individuals: Kubo focuses on providing loans and savings products to the emerging middle class. The digital approach that the Company has allows them not only to offer more competitive conditions for already banked borrowers, but also to provide financial services to people that otherwise would not have access to (i.e. unbanked or underbanked population). Also, Kubo uses alternative technology-based credit assessment tools based on several parameters (other than borrowers’ income) to assess credit risk of potential borrowers. This allows the Company to provide credit to low income borrowers. As an example, in 2019, 23.4% of the loan applications did not require a proof of income. These two factors (i.e. better terms and flexibility in credit risk assessment) allow Kubo to focus on socioeconomic levels ranging from D to C+
Access to finance for SMEs: Although Kubo’s credit portfolio is focused onconsumer loans, the Company is able to reach SMEs as well, given that 25.6% of the people that request a consumer loan from Kubo, are SME owners that require funding for their business. of SME portfolio grew by 31% from 2018 to 2019 and is projected to continue growing moving forward. In particular, in 2019, of those consumer loans that were used by SMEs, 50% were requested by women.
Job Creation: Being one of the largest Mexican fintech companies, Kubo employs around 180 people, and had a rate of increase in new permanent hires from 2018 to 2019 of 32.3%. The company expects to grow its permanent employer base by 10% in 2020, by 36% in 2021 and by 42% by 2022. 1.74% permanent positions in 2019 were occupied by people with disabilities. Furthermore, Kubo’s staff is characterized by its youth. The average age of the Company’s employee base as of the end of 2019 was 34 years old and for 33% of the employees, Kubo was its first employer.
Gender: Kubo’s impact in gender comes in two different ways. First, as of the end of 2019, around 42% of Kubo’s total employees were female and within senior management, 33.3% of the positions were filled by women. As informed by the company, by 2021, the objective is to reach a 50% level of female employees both in senior management positions and in the Company as a whole. Second, in relation to its customer base, as of the end of 2019, 45% of Kubo´s loan portfolio was composed of loans to women. Also, in 2019, 42% of the loans that were disbursed were requested by women.
Innovation: Kubo is a digital bank that uses technology to provide access to finance to the emerging middle class. Around 80% of Kubo’s customers interactions are through a mobile phone app and the company spends a considerable amount of resources to improve customer experience digitally. As an example of the Company’s interest in innovation and technology, 24% of Kubo’s employees have a STEM degree. Additionally, for the purpose of risk modeling and decisioning, Kubo uses advanced technology, including digital identity and usage information.
