James Gutierrez is the Founder of Progreso Financiero, which distributes loans for people with limited credit histories, such as immigrants. Now an experienced FinTech entrepreneur, James Gutierrez started a new company, Insikt, with the goal of helping retail stores give installment loans to people with poor credit. The company has credit software that offers insight into the possibilities of repayment by these individuals. Marrying technology with innovative financial services, Gutierrez’s newest venture is poised to welcome non-traditional lendees into the fold.
James Gutierrez’s Progreso Financiero offers loans that have an APR better than payday loans and other options for lower-income people. APR for these options can run over 100%, and that bothered James Gutierrez, spearheading his own entrance into the realm of inclusive banking. Through his company, Gutierrez launched a loan origination system called Lendify as well. Speaking to the New York Times, James Gutierrez indicated that these types of incentives can eliminate the racial gap seen in the banking industry.
Insikt deals with collections and companies can brand the loans they offer. Over nine years, Progreso has loaned over $1 billion to Spanish immigrants who have come to the United States. James Gutierrez, a Venture Capital Investor in the world of FinTech, remains a shareholder of Progreso today. Insikt will fund loans with the marketplace loan strategy, which involves using payments on the loans to back securities for investors. The aim is to appeal to people who want more interest than is offered by a bank.
Though investing in loans can have some risk, the Insikt credit evaluations offer investors security in their loan investment. The company has performed three securitizations so far. These types of financial companies help money borrowers find investors that are looking to loan money at rates that are near a credit card. This industry is strengthening, and according to James Gutierrez’s TheHill article, this financial inclusion is key to an economic revival, led by traditionally marginalized people.