Cadence, a leader in the digital securitization of alternative investments, is partnering with Zinobe to expand its offering of investment products.
Cadence is pleased to announce a strategic partnership with Zinobe, its first partnership with a South American originator of high-quality private credit assets.
Leveraging data science and digital technology, Bogotá based Zinobe has become a leading non-bank finance company in Colombia since its inception in 2011. Traditional credit penetration in Colombia is low, and Zinobe more than doubled loan disbursements last year in this underserved market. In all, Zinobe has served over 250,000 consumer borrowers across Colombia.
Zinobe employs a data-driven approach to approving customer applications. This process starts with a 40-question application, with the answers being used as algorithm inputs. These inputs are also complemented by data from credit bureaus and other public and private databases to make a credit decision. Following the application, loan approval takes an average of 18 seconds, and disbursement usually happens within 4 hours.
By contrast, incumbent banking institutions are burdened with older IT infrastructure, making it challenging to conduct data-intensive analysis and provide the paperless and fast service that consumers increasingly expect.
According to Prath Reddy, Head of Capital Markets at Cadence, the new partnership is the product of Cadence’s intent to work with data-driven, best-in-class originators serving under-resourced populations and industries. “Low availability of credit and dissatisfaction with traditional banks has created an opening for specialty finance lenders like Zinobe,” Prath explained. “We believe that data-savvy originators are poised to see greater adoption of their products as consumers and businesses alike search for transparent, competitive, and customer-focused financing solutions.”
Zinobe has both consumer (d/b/a Lineru) and SMB (d/b/a Aliatu) lending products that offer short term credit to customers on a revolving basis. Tarek El Sherif, Zinobe’s Founder and CEO shared, “We are very excited to work with Cadence who we feel shares our approach to using technology to provide better service for our clients and a more intelligent risk management for our investors.”
As an alternative investment platform, Cadence continues to offer accredited investors uncorrelated, high-yield investment products while providing non-dilutive growth capital to its origination partners. Cadence is excited to partner with Zinobe to continue building an extensive network of best-in-class emerging market originators.