Mobile-ready business growth
The impact story of UNI2
UNI2 Microcrédito, formerly known as Finamiga, is a microfinance institution located in the city of Cali, southwest Colombia. The company currently has a team of young, proactive IT staff that has been continuously strengthening its digital operation to ensure innovative solutions for clients and team members. UNI2 focuses on financing and opening formal credit opportunities for microentrepreneurs, farmers and small business owners who are usually excluded by the country’s formal banking sector. With more than 15,000 clients, UNI2 fast-growing and responsible expansion model has positioned it as the best portfolio quality in the country, according to reports by Colombia’s Microfinance Association.
In 2022, UNI2 received a loan from the Agri-Business Capital Fund (ABC Fund) of $3.000.000 USD, which will enable the company to expand and develop its loan portfolio more sustainably.
As part of the ABC Fund loan, UNI2 also received technical and advisory services support through the Technical Assistance Facility (TAF), managed by Agriterra. The support was supplied by TAF partner Rabo Partnership. The emphasis of the TA support was directed towards strengthening the development and technology department of the organisation, as it is moving from a start-up model to a scale-up operation. As part of the growth progression, the number of employees has increased more than 60% in the past years, reaching more than 250 active collaborators. A transition like this also comes with a lot of IT challenges.
The first specific goal of the TA process was directed towards supporting UNI2’s in building a digital APP based on their online platform, which could reach new customers and improve the efficiency and effectiveness of the loan officers. The APP needed the functionality to allow UNI2 team to fill in the forms used in assessing a client’s business during the loan study process. This new functionality provides many benefits. The loan assessment process is faster and more accurate as all calculations are made automatically. As a result, the loan handling time will be reduced, and clients may receive their loans quicker. This is important because microentrepreneurs often need to have these resources as soon as possible.
UNI2 development team is a young enthusiastic line-up that benefitted greatly from the share knowledge and best practices of Rabobank’s team. One of the key collaborations resulting from the TA process was the team’s construction of a strategic pipeline to expand its main server infrastructure and establish the necessary UX components to advance in a functional mobile application for the near future. This were transcendental tools that greatly help UNI2 to diagnosed potential opportunities to strengthen its digital operation and ensure the basis for innovative new ideas.
One small business that received microfinance from UNI2 is Jorge, a young yoghurt producer who began his business in his garage and has progressively grown it. Like almost 84% of Colombians, Jorge's business was previously informal and he used not to pay taxes which meant he could not get a loan at a formal institution. However, UNI2 opened an opportunity for Jorge to acquire a loan through the ‘Motoamiga’ product, which enabled him to buy a motorbike so he could transport supplies and sell his yogurt with more easiness not only in local parks near his house, but also by delivering to clients’ homes.
As a result, Jorge has been able to scale his operation: he registered his business at the Chamber of Commerce, sells yogurt to gyms in the neighbourhood and employs five people who continuously help him with the current operation. Jorge recently finished paying off his motorbike and is currently applying for another loan with UNI2 to expand his business further.
With the support of funding from partners like the ABC Fund along with its essential TA processes, UNI2 has constantly expand its operation to reach more clients like Jorge while enabling them to grow their business sustainably through vital financial inclusion opportunities.
