Bankamoda was born in Colombia in October 2018 with the aim of providing exclusive financial services to micro and small businesses in the fashion industry. This was stated in an article by Fashion United of Mexico on August 25th.
According to this publication, the initiative came from María del Mar Palau, CEO of the company, who, together with two other partners, decided to carry out a niche proposal, but one that has an air of innovation and potential. You highlighted that too It already has 690 active clients.
Palau provided some details with figures about what is happening in Colombia in this area: “There are more than 145,000 micro and small business production units that are part of the business fabric of the fashion system, excluding the medium and large ones. This means that with 27 percent of job creation and more than 850,000 direct jobs, it is the main manufacturing employer in the country and it is believed that there are 1.8 times formal indirect jobs and the additional informality can be around one and a half million jobs (based on 2019 data)”.
Then he added, “The sector is traditionally informal or pseudo-formal because 82 percent of the people in the industry are mothers, including many householders who often cannot work eight hours a day, but they do piecework or on-demand Times “.
In addition, he stated Working in industry offers the opportunity to generate social mobility: “Many generations of clothing-only women already have the option of having their children or grandchildren university educated, and this has enabled these generations to get into or into the fashion industry with more aggressive bets, with their own brands to let in more sophisticated channels for marketing products and these are the social impacts that attract Bankamoda. ”
As they noted from Bankamoda, The idea is that through instruments of financial leverage, small businesses can grow and have access to accelerated social mobility than that registered in the last two generations.
How do you work?
The development of the business model goes hand in hand with the aim of integrating more productive units into the formal credit system and granting them access.
In this regard, Palau stated: “Perhaps the most assertive way we’ve found is the B2B2C. Although we are a fintech focused on SMEs (we do a digital self-management through our website that any company can access, do the whole process online and we respond in a maximum of 24 or 48 hours depending on the amounts and the Condition of the customer). What happens to some companies is that since they traditionally have not had access to formal credit in the banking system, they are very afraid of reaching out to them without prior recommendation. They see it as too good to be true. That is why we decided to work with big players in the industry to bring these small businesses in with recommendations that would give them confidence and make us easier to reach. “
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