who is destacame? · rohit ramchandani | bar kafri who is destacame? founded in 2014 by three sloan...

FinancialInclusionat

15.389GlobalEntrepreneurshipLab2017ShelbyWhite|SarahRobinsonRohitRamchandani|BarKafri

WHOISDESTACAME?Foundedin2014bythreeSloanalums,DestacameisafintechstartupfocusedonhelpingtheunbankedandunderbankedaccesscreditinChileandMexico.Destacamestartedbyprovidinganalternativecreditscoringmodeltohelpbanksassess

riskofitscustomers.Byanalyzingpaymentbehaviorofitsusers,Destacameisabletorewardgoodpayerswithopportunitiestomanagetheirpastdebtandaccessfinancialinstrumentsatcompetitiverates.

PROJECTOBJECTIVE:Ourteamwastaskedwiththedesignofafullend-to-endcustomerlifecyclefocusedonthesegmentsofthepopulationthatarecurrentlyunderbankedorunbankedinChile.WewereaskedtohelpestablishaprocesstoobtainfinancialsupportforDestacameusersthatincludes:clearlydefinedcustomersegments,proposedproductsandservices,operationalchallengesthatcouldarise,

methodsofmonetizationandkeypartnershipstoaidinthesuccessofDestacame’smission.

NextStepsforDestacame

OPPORTUNITYI:PlatformStrategy

LeveragingDestacame’sstrongbrand,lowcostofcustomeracquisitionandearly-moverstatus,itcanstrengthenitscompetitiveadvantageandcreateincreasedbarrierstoentrybymovingbeyonditsalternativecreditscoreofferingandfocusingondevelopingcapabilitiesforbothconsumersandproducerstoreinforceitsplatformstrategy.

METHODOLOGYANDFINDINGS:Leveragingbothsecondaryresearchmethodswhileoff-siteinCambridge,andprimaryresearchmethodson-sitein

Santiago,ourteamevaluatedavarietyofcriticalquestions.

OPPORTUNITYII:eCapitalPartnershipModel

eCapitalisanexistingfinancialserviceplatformofferingservicessuchasfactoringandleasingtoSMEs.ApartnershipwithDestacameprovidesaccesstoanextensiveconsumeruser-base,whileeCapitaloffersthepotentialaccessto:•  Additionalcapitaltoextendcreditto

consumers•  Extendedloandistributionchannels

OPPORTUNITYIII:BancoEstadoPartnershipModel

Establishpartnershiptoexecutemulti-steppathtowardsre-bankerizationtogetherwithBancoEstado.Stepsofthisprocesswouldincludeissuanceofmicro-loansissuedbyDestacameandissuanceandtrackingofspendingonprepaidand/orcreditcards.Repaymentandspendingdatawouldthenbeusedtore-evaluateusercreditworthinessandofferloanthroughtraditionalfinancialinstitution(i.e.BancoEstado).

Whatbusinessmodelsarebeingutilizedbycompetitorsordeployedamongsimilarstartupsinemergingmarkets?

WhatchallengesareuniquetotheChileanandSouthAmericanmarkets?Whataresomewaytoaddressthesechallenges?

WhatregulatorychallengesexistorposeapotentialthreattoDestacame’sbusinessmodel?

KeyInsightsLearned:•  NewlegislationonprepaidcardsinChilepresentsapotential

opportunityforDestacametoutilizemoregranulartransaction-leveldatatoexpanditsscoringmodel

•  Theinabilitytoaccesscriticalconsumerdatafor~7MChileanspreventsmanybanksfromlendingcredittothissegment

•  Currentcreditratingsystemonlytakesintoaccountnegativecredithistory,openinguptheopportunitytoenhancethesystemwithmorepositiverepaymentbehaviorinformation

•  Asignificantneedexistsinthemarkettoincreasefinancialliteracywithmorethan75%ofthepopulationlackingageneralunderstandingofbasicfinancialproductsandservices

•  Exceptionallyhighmarginsforbanks(~30%)andexistingcontroldecreasesbanks’willingnesstoacceptchangeorseekorganicgrowththroughnewtargetsegments

•  Retailers,suchasFalabella,seemicroloanprovidersasathreattoitscurrentcreditoffering,butseepotentialpartnershipopportunitiesforthecollectionofpastduedebts