CALIFORNIA – The National Asian American Coalition (NAAC), a US Department of Treasury-certified Community Development Financial Institution (CDFI), has partnered with global venture studio Talino Venture Labs’ portfolio startup Asenso Finance to build NAAC Finance, a digital lending service designed to facilitate loans for Low to Moderate Income (LMI) communities who have historically been left out of traditional banking services.
This partnership was born out of NAAC and Talino Venture Labs’ Market Readiness category win in the tech sprint organized by the Federal Deposit Insurance Corporation entitled, Breaking Down Barriers: Reaching the Last Mile of the Unbanked. The tech sprint aimed to explore new technologies and techniques to help banks meet the needs of unbanked consumers.
“NAAC has always championed collaboration with industry experts who share our same vision in finding the most effective ways for supporting growth and capacity for the underserved; often these paths are the more unbeaten ones that require a proven spirit for innovation. We found these qualities in the forward-thinking leadership of Talino Venture Labs and Asenso Finance”, said Faith Bautista, NAAC President and CEO.
“We are honored to collaborate with an organization whose mission is aligned with ours: to give financial access to minority and underserved communities and bring them closer to creditworthiness,” said Winston Damarillo, Talino Venture Labs CEO.
The SPRING Small Dollar Loan
Getting quick access to cash can be difficult in the best of times; even harder when times are tough. Even if it’s just a small amount of money to cover an emergency, a payday loan could leave one worse off than before they borrowed with loan fees equivalent to an annual percentage rate (APR) of nearly 400% according to the Consumer Financial Protection Bureau (CFPB).
“The NAAC has worked hard to bring about long term solutions faced by the underserved communities we represent. Financial resources must be inclusive. The launch of NAAC Finance digital lending services addresses a low-cost access to credit for consumers who are credit invisible, lacking credit history to obtain a credit score. The impact of NAAC Finance loan products that allows unconventional sources of information called “alternative data” to gain access to credit to build credit history is a substantial factor that leads to improvements in the socioeconomic circumstances of U.S. households.”, said Bautista. The two-thirds decline in the unbanked rate between 2011 to 2019 reported by the Federal Deposit Insurance Corporation (FDIC) was attributed to socioeconomic improvements.
NAAC Finance’s initial offering is the SPRING Small Dollar Loan, which aims to provide borrowers immediate financial relief even if they have a limited credit score. Loan applications are reviewed and approved within 2 business days, while funds are disbursed within 2 weeks. Borrowers can apply for $1,000, $2,000 and $2,500 loans, payable in 12 months.
What sets the SPRING Small Dollar Loan apart is it requires borrowers to complete financial literacy training, which equips them with essential money management skills.
NAAC Finance will also provide Small Business Loans, designed to give small businesses—the backbone of the American economy—access to the capital they need to bounce back after the onslaught of the global COVID-19 pandemic.
The National Asian American Coalition (NAAC) is a US Dept. of Treasury Certified CDFI and a HUD-Approved 501(c)(3) nonprofit Housing Counseling Agency providing its services to over 10,000 minority families in diverse communities throughout California by preparing clients for mortgages and becoming sustainable homeowners. As an approved SBA Microloan Intermediary Lender and IBank-guaranteed lender, NAAC is a resource by qualified small businesses & non-traditional borrowers for access to capital and other financing options to assist underserved communities.
Talino Venture Labs is a global venture studio for inclusive fintech that is on a mission to bridge financial inclusion for over 1.7 billion people around the world. It uses the successful venture studio model to build repeatable, scalable, and profitable fintechs that empower underserved, underrepresented groups around the world with financial access and mobility. Visit www.talinolabs.com for more information.