Open Co was created earlier this year by the merger of Geru, an eight-year-old online lender, and FTC portfolio company Rebel, a four-year-old startup using AI and bank account data to underwrite risk and assess clients’ financial health. Combining the results of its two predecessors, Open Co says it has helped consumers save more than $500m in interest expenses over the years and has been increasingly establishing partnerships with merchants, retailers and service providers to be closer to its clients’ point of need when requesting credit.
“Access to good quality credit at the point and time of need is the single most important obstacle for Brazilians to achieve financial wellness, increase consumption and create wealth,” said Sandro Reiss, Open Co’s co-founder. “It’s a huge market that is still controlled by incumbents charging extremely high interest rates, which makes it difficult for people to pay back their loans. It is a vicious cycle; delinquencies are high and interest rates even higher. Our mission is to change that.”