Tricolor receives the Fintech Nexus Award for Excellence in Financial Inclusion
The CDF uses artificial intelligence to offer better economic outcomes to Hispanic communities.
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Tricolor Holdings, a U.S. Department of Treasury certified Community Development Financial Institution (CDFI), was recently announced as a winner of the Fintech Next Award for Excellence in Financial Inclusion.
This recognition was given based on Tricolor’s proven track record of leveraging innovation and artificial intelligence to improve physical and financial mobility.
The Fintech Nexus Award for Excellence in Financial Inclusion is given to the financial services companies that make the biggest difference in expanding access to financial services for diverse populations.
Daniel Chu, Tricolor’s founder and CEO, stated through a press release:
We’re grateful to be recognized by such a respected and prestigious financial technology publication, but more importantly for the growing awareness of the formidable challenges faced by credit invisible Hispanic consumers with respect to mobility.
Recognized in the market for its use of innovative and advanced technologies, as well as a disruptive business model that enables the purchase of used vehicles, this company empowers low-income and diverse communities and provides them with better access to conventional financing.
Since 2008, Tricolor has disbursed more than $2 billion in auto loans and has helped hundreds of thousands of customers, many of whom do not have access to affordable credit to purchase a high-quality used vehicle.
In addition to offering proprietary tools that enable self-selection for its clients, Tricolor is the only company in all of consumer ABS to issue multiple social bonds collateralized with loans that provide affordable access to low-income borrowers with no FICO score for financing the purchase of a car.
Focus on Hispanic Populations
As part of its business strategy, Tricolor references the FDIC's National Survey of Unbanked and Underbanked Households, which indicates that 32% of the U.S. Hispanic population has no access to conventional credit or has limited access to it.
“When this vast and growing population is left behind in terms of access to credit, we all risk falling short of achieving our economic goals as individuals and as a nation,” Chu highlighted, referring to the Hispanic communities.
Through its integrated retail lending platform, Tricolor unlocks financially inclusive opportunities for low-income and credit-invisible Hispanics that are ignored by major financial providers.
Using its proprietary customer knowledge and more than 25 million unique non-traditional credit attributes, Tricolor has saved borrowers more than $800 million in potential interest compared to loans they would otherwise have qualified for.
It has also helped more than 50% of its non-FICO borrowers establish a score with a major credit bureau, routinely earning Net Promoter Scores that are higher than even the biggest names among disruptors and traditional retailers.
“This award validates the inextricable link we’ve formed between doing well and doing good at scale and highlights our long history of executing a model that provides value for customers while creating long-term value as an enterprise,” concluded Chu.
Tricolor has been routinely recognized for its important consumer support work, including being named one of Inc. Magazine's Best in Business for 2022.