Tricolor Named Finovate Industry Awards Finalist for Both Excellence in Financial Inclusion and Best Consumer Lending Solution
Tricolor continues to earn plaudits for its use of technology and AI to lend affordably to underserved Hispanics and provide them a path to the financial mainstream
DALLAS, Aug. 03, 2022 (GLOBE NEWSWIRE) — Tricolor today announced it has been named a finalist in two categories for the annual Finovate Awards: Excellence in Financial Inclusion and Best Consumer Lending Solution. This latest recognition from one of the fintech industry’s leading awards programs builds on a growing list of milestones for the company as it delivers on its mission to help underserved Hispanics enter the financial mainstream and pursue a better life.
Sixty (60) million Hispanics live in the United States while accounting for more than half of the US population growth over the past decade, yet more than a third have no or limited access to mainstream credit, creating mobility challenges for a segment of the population in which fewer than one in six can work remotely. This high barrier to affordable financing results in scarce options and leaves many susceptible to predatory operators.
Applying artificial intelligence (AI) to nearly 15 years of proprietary customer insights and with over 25 million unique non-traditional credit attributes, Tricolor unlocks financially inclusive opportunities for low-income, credit invisible Hispanics left behind by mainstream solutions.
To date, Tricolor, a U.S. Department of the Treasury certified Community Development Financial Institution (CDFI), has disbursed over $2 billion in affordable auto loans as part of its mission to empower underserved Hispanics and provide them a path to a better future through both physical mobility and upward financial mobility. Over this term, Tricolor has saved borrowers more than $800M in potential interest compared to loans for which they would have otherwise qualified and has helped over 50% of its borrowers with no FICO score to establish a score with a major credit bureau.
Tricolor’s patent-pending, interactive tools provide unprecedented transparency and empower self-selection for its customers. Further, its integrated retail plus lending platform creates a seamless customer experience and superior value, resulting in high quality vehicles, backed by a free warranty, and made accessible through affordable credit. As a result, Tricolor routinely earns Net Promoter Scores that are superior to even the biggest names among both disruptors and traditional automotive retailers.
For its work providing a compelling value proposition within a largely predatory industry, Tricolor has logged a series of key milestones that recognize its work and enhance its ability to serve customers.
- In 2022, Tricolor was the first auto lender to issue a social bond in all of consumer ABS, uniquely certifying its overall lending platform versus a select cohort of specific loans.
- Tricolor is also the only issuer in consumer auto to be recognized by the US Treasury for serving the financially underserved and was awarded designation as a Community Development Financial Institution (CDFI).
- In 2021, Tricolor announced a $90 million equity investment from BlackRock’s Impact Opportunity Fund (“BlackRock Funds”), which focuses on empowering underserved communities.
“Underserved Hispanics continue to experience a significant wealth gap in America and are challenged to find reliable transportation at affordable prices and rates,” said Daniel Chu, founder and CEO of Tricolor. “Being recognized by Finovate for both the power of our lending platform and our track record of expanding financial inclusion is a tremendous validation of the vital role Tricolor plays in helping its customers pursue their dreams.”
Tricolor is a U.S. Department of the Treasury certified Community Development Financial Institution (CDFI) and a mission-driven company that leverages its direct-to-consumer, A.I.-powered platform to provide transportation and upward financial mobility solutions for underserved Hispanics in the United States. It utilizes advanced data analytics and technology to advance financial inclusion to a highly underserved market and offer responsible, affordable, credit-building auto loans to individuals with no or limited credit history.
Headquartered in Dallas, Texas, Tricolor and its affiliate Ganas Auto Group operate 50 retail centers across 20 markets in Texas, California, Nevada, and Arizona with a shared services center in Guadalajara, Mexico. On a combined basis, Tricolor and Ganas have served over 90,000 customers and disbursed over $2 billion in affordable auto loans using their proprietary model to segment risk.
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