Tricolor receives the Fintech Nexus Award for Excellence in Financial Inclusion

Tricolor Holdings, a US Department of Treasury-certified Community Development Financial Institution (CDFI), was recently announced as the 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 economic mobility.

The Fintech Nexus Award for Excellence in Financial Inclusion is given to the financial 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 are grateful to be recognized by such a respected and prestigious financial technology publication, but more importantly for the growing awareness of the formidable challenges credit-invisible Latin American consumers face with regard 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 gives them 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 quality used vehicle.

In addition to providing proprietary tools that enable self-selection for its clients, Tricolor is the only company in consumer ABS to issue multiple social bonds secured by loans that provide affordable access to low-income borrowers without FICO scores to finance the purchase of a car .

As part of its business strategy, Tricolor refers to the FDIC’s National Survey of Unbanked and Underbanked Households, which indicates that 32% of the US Hispanic population does not have access to conventional credit or has limited access to it.

“When this huge and growing population is left behind in terms of access to credit, we all risk falling short of our economic goals as individuals and as a nation“, Chu highlighted, referring to the Latin American communities.

Fintech’s top innovators were recognized today when the Fintech Nexus Industry Awards were presented at the Fintech Nexus USA conference.#FintechNexus2023 #FintechNexusAwardshttps://t.co/3SxdhU7D1F

— Fintech Nexus (@Fintechnexus) 10 May 2023

Through its integrated retail lending platform, Tricolor unlocks financially inclusive opportunities for low-income and credit-invisible Hispanics who 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 have otherwise qualified for.

It has also helped more than 50% of non-FICO borrowers establish a score with a major credit bureau, routinely earning Net Promoter Scores higher than even the biggest names among disruptors and traditional retailers.

“This award confirms the inextricable link we have formed between doing it well and doing it well at scale, and highlights our long history of executing a model that delivers value for customers while creating long-term value as a business“, Chu concluded.

Tricolor has been routinely recognized for its important consumer advocacy work, including being named one of Inc. Magazine’s Best in Business for 2022.