MICROWD is a social microfinance fintech dedicated to accelerating community development by empowering female entrepreneurs. With operations in Nicaragua, Perú, México and Costa Rica, MICROWD has provided 18,800 microloans to women entrepreneurs since 2017 with investment from 1,400 investors.
COO Beatriz Tena de la Peña shared MICROWD’s unique model to support under-served women entrepreneurs with access to finance, knowledge, tools, mentorship, and business support—with measurable impact on business success and livelihoods.
Alliance: Tell us about MICROWD, the customers you target, and your customer value proposition.
Beatriz Tena de la Peña: MICROWD focuses on supporting entrepreneur women who, driven by their ambition and desire to succeed, want to grow a business. Through its web platform and investment vehicles, MICROWD connects these women with social investors who believe in them, establishing an attractive model for all involved.
With a presence in México, Nicaragua, Perú, and Costa Rica, MICROWD has positively impacted the lives of more than 10,000 extraordinary women. Access to fair financing has had a transformative effect not only on their business and their income, but also other areas of their lives. For instance, 55 percent of the entrepreneurs can save more, providing them with greater financial security and making them less vulnerable to uncertainty. Additionally, 43 percent of our clients report being able to spend more on their children’s education, improving their future opportunities; and 49 percent say they have more capacity to cover healthcare expenses, ensuring physical and mental well-being for themselves and their families.
It is important to highlight that MICROWD has not only focused on providing capital access to its clients, but has adopted a broader approach to meet their needs. From the moment a client receives the first loan with MICROWD, she becomes part of the MICROWDX incubator, an accelerator that provides personalized follow-up for four months. This ensures she gains the knowledge, training and tools needed to effectively invest her first microloan.
The client will complete this course, supported by artificial intelligence, while maintaining a very personalized approach. A mentor regularly communicates with the client to ensure she feels comfortable with her progress.
After completing the four-month course, the client has the opportunity to continue growing with MICROWD, receiving more financial support and access to new tools and bigger microloans. She will have the option to join the “MICROWD Community”, where she can connect with hundreds of women in similar situations. She will also have the chance to receive support from volunteers who offer personalized business consulting and can access hours with a professional designer to help improve her business branding, for example her logo and marketing materials.
Alliance: What gap are you filling in the market?
Beatriz: On one hand, our product offers significant advantages for women compared to other lenders. We are able to charge much lower interest rates than our competitors, thanks to our innovative technology that eliminates intermediaries. We provide access to credit without requiring collateral or shared liability, offering a generous two-month grace period. Additionally, we support women with a mentorship and training program designed to enhance their entrepreneurial skills. This program also connects them to a network of over 10,000 women entrepreneurs from different countries and communities who face similar challenges and can share their valuable experiences.
On the other hand, for investors, we offer a unique opportunity to invest in a financial product that not only provides returns of up to 12 percent in local currency, but also generates a measurable social impact. Furthermore, MICROWD fosters direct connections between investors and entrepreneurs through calls or video chats, creating meaningful relationships and allowing investors to engage with the women they are supporting.
Alliance: How have you designed your sales funnel to reach women entrepreneurs?
Beatriz: Our product is specifically designed to meet the needs of women, and it has been co-created with their input. From the very beginning, we knew it had to be simple, accessible and easy to understand. For example, we decided on equal monthly payments without adding mandatory services like insurance contracts. Additionally, we wanted to offer a customer service experience that felt close and personal, so we hired a local team from the same communities as the women, creating a sense of trust and connection.
Throughout our journey, we have continuously adapted both the product and the way we work with women, based on the feedback we’ve received from them and our team.
For instance, when we launched our first initiative, we offered in-person workshops. However, we soon realized that many clients preferred not to attend face-to-face sessions, as they felt it took up too much time and forced them to leave their businesses and children behind. They preferred something they could do when and where they wanted.
After receiving this feedback, we decided to develop an app to give them access to videos and information about their credit. But, we found that many women were not downloading the app. After discussing this with them, we learned that many didn’t have smartphones, or the app was too heavy for their devices, or they didn’t want to use up too much data. So, we had to adjust again and adapt the service to offer it through WhatsApp, a tool they were already familiar with and used daily.
Alliance: You recently participated in the Alliance Hackathon 2024. How did the Hack add value to your fintech?
Beatriz: It was an amazing experience. Not only did we have the opportunity to gain valuable knowledge through the various training and mentoring sessions organized by the Alliance, but we were also fortunate to pitch our case in front of an impressive network of professionals. We’ve been truly inspired by other institutions involved, and the Alliance’s outstanding reputation has instilled confidence in our investors, reassuring them that they are backing a credible and promising initiative.
Alliance: Why did you join the Financial Alliance for Women? As a startup fintech, what support does our network provide you that you can’t find elsewhere?
Beatriz: We decided to join for several reasons. Among them, the strong focus it places on helping organizations improve their approach and offerings to women. For us, this is key, as our entire model revolves around them. We are convinced that the mentorship, access to training and exposure to a vast network of contacts will inspire us and help drive new initiatives within our organization, implementing improvements that will allow us to create a greater impact in the communities where we work. And we are fully committed to that.
