“Lending partners that have access to real-time data are at a significant advantage to provide credit in this market,” explains Jacob Haar, the Managing Partner at Community Investment Management and the first guest of Accion Venture Lab’s new VentureKast season, VentureKast: Rebuild.
Venture Lab spoke with Jacob about the challenges that many lenders are facing as a result of the COVID-19 pandemic and how fintechs are uniquely positioned to respond to challenges and continue driving inclusive finance in this environment.
As an investor, Jacob highlights the value of “capital that understands how to lend to underserved customers, how to rely on innovation to lower costs, [and] align incentives with the underlying borrower that you are trying to serve.” Although this period has been immensely difficult for many lenders and their borrowers, the fintechs that capitalize on their innovation have the opportunity to help lead a fundamental shift to digital financial services. In other words, says Jacob, for fintechs “this is their time to shine.”
Originally posted on Accion’s website.