![]() This gives us the flexibility to leverage the scale and infrastructure of our partners to drive long-term change for communities often overlooked," said Sean Salas.Ĭamino Financial is the first AI-powered Community Development Financial Institution ("neo-CDFI") expanding access to credit for underserved Latinx entrepreneurs in the U.S. "As a neo-CDFI, we're inherently a community partner and not a challenger to banks or other traditional financial institutions. ![]() The Company is actively engaging with community partners such as banks, corporations, government entities, and non-profit organizations seeking to further scale their impact in business communities of color. "We plan to combine the infinite scale of our AI-powered machine learning and data aggregation models, with the lower-cost capital and resources available to CDFIs, to drastically lower systemic costs and increase accessibility to capital among Latino and other underserved business segments." "As a neo-CDFI, we see the value in bridging the gap in capabilities between FinTechs and CDFIs," said Kenny Salas, Co-Founder and COO of Camino Financial. The larger scale of FinTech lenders was also apparent in PPP lending, where participating FinTech lenders moved on average 52x more unique loan volume and 23x more loan origination dollars than CDFIs. Using loan size as a proxy for inclusivity of capital, 76% of FinTech PPP loans were below $22,880, compared to 52% of CDFI PPP loans were below the same loan size. While it is clear CDFIs are a critical solution to finance underserved businesses, recent research reported by NYU Stern suggests FinTech lenders played a larger role in helping minority-owned businesses access PPP funding in 2020. The Biden administration, banks, and corporations have committed over $40 billion in capital to CDFIs and Minority Depository Institutions ("MDIs") in the form of grants and low cost debt. While CDFIs and community lenders have existed for decades, Camino Financial and other CDFIs are well positioned to augment their impact thanks to the unprecedented capital commitments by public and private sectors. ![]() We saw this dynamic further amplified during COVID-19 when CDFIs helped these business communities access PPP and other forms of relief." "For a long time, we've had a strong view that CDFIs play a critical role in narrowing the capital disparity gap experienced among minority business owners. ![]() "Today culminates a three year journey in becoming a CDFI," said Sean Salas, Co-Founder and CEO of Camino Financial. Camino Financial is the first national CDFI powered by artificial intelligence, referred to as a "neo-CDFI," focused on lending to underbanked businesses.As a neo-CDFI, we see the value in bridging the gap in capabilities between FinTechs and CDFIs LOS ANGELES, Ap/PRNewswire/ - Camino Financial, a Los Angeles based FinTech focused on lending to Latino-owned businesses, announced today that it has been certified as a national Community Development Financial Institution ("CDFI") by the U.S. ![]()
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