CFAs: Financial Inclusion Lab to promote AI based Digital Solutions

The LIF is a platform that brings together the public and private sectors, entrepreneurs and investors with the aim of promoting business opportunities, fostering the interaction of members of the financial and entrepreneurial ecosystems, and providing concrete solutions to development needs raised by the partners of this initiative.

CAF and its partners aim to promote the financial inclusion of the low-income population, women, youth, entrepreneurs and MSMEs in the region, as well as support MSMEs with innovative financial products and services that incorporate artificial intelligence.

Objectives

• Promote innovative technological solutions that contribute to improving the financial inclusion of vulnerable groups and MSMEs in Latin America and the Caribbean.
• Scale and replicate solutions with a focus on financial inclusion of vulnerable groups and MSMEs to other countries in the region.
• Promote the generation of investment agreements with the private sector to promote the chosen ventures.
• Strengthen the Fintech entrepreneurial ecosystem with a focus on inclusion, financial education and development of the financial system in the region.

Prizes and Rewards

• Selection of outstanding startups
  • CAF, in collaboration with the evaluation committee and key partners from the public and private sectors, will identify the 20 most promising proposals from CAF member countries.
• Exclusive invitation to Pitch Day
  • The selected startups will have the exceptional opportunity to present their innovative initiatives at our virtual Pitch Day on December 11, 2024. This event offers unmatched visibility and the opportunity to present and network with key decision makers from allied organizations.
• Personalized support and growth opportunities for winners
  • The 8 winning proposals will access prestigious acceleration and preparation programs for investment and matchmaking, as well as support in impact measurement.
  • These programs will begin in January 2025 and end in November 2025 and will provide personalized mentoring from industry experts, strategic guidance in monitoring and impact evaluation, and extensive networking opportunities. Participants will also benefit from greater exposure within the entrepreneurship ecosystem, paving the way for future investment and partnership opportunities.
  • In the first phase, the 8 winning proposals will participate in the Seedstars acceleration program, tailored to the needs of each of the ventures. This program will begin in January 2025 and will end in May 2025.
  • Subsequently, the 8 winning proposals will begin an investment readiness and matchmaking program with Endeavor Colombia, which will begin at the end of May 2025 and will end in November 2025.
• Impact measurement
  • The 20 finalist proposals will receive support in identifying the theory of change and key impact indicators of their ventures. Likewise, they will be able to participate in a virtual workshop on the importance of measuring, as well as define the first steps to begin carrying out an impact measurement, with the aim of it serving as a driving force for raising funds.
  • This support in impact measurement will be carried out Agile Impacts and will develop between January and May 2025.
  • In addition, Google will provide the 8 winning startups of the LIF with USD 25,000 in Google Cloud credits, as well as technical support for the implementation of their solution. This is part of the Google for Startups program.

Categories and Subcategories

• The sixth edition of the Financial Inclusion Laboratory seeks to promote the implementation, growth and expansion of technology-based solutions that help solve the needs of the public and private sector in the following categories:
  • AI services for financial institutions – Fintech as a Service (FaaS) and Software as a Service (SaaS):
    • Development of artificial intelligence models to facilitate the credit evaluation process using alternative information to offer a credit score to various populations that have seen their access to formal credit products limited.
    • Indicator systems designed and implemented with artificial intelligence technology to monitor and promote the financial inclusion of diverse unserved or underserved populations in financial institutions.
    • Portfolio and market analysis focused on serving various population segments (gender perspective, rural population, migrants, young people, older adults, LGBTQ+ population, MSMEs, among others) using artificial intelligence for financial institutions.
  • Design of financial products and services assisted by AI, focused on the needs of different segments of the population and MSMEs:
    • Digital lending solutions that use artificial intelligence to evaluate solvency and risk more accurately and quickly.
    • Digital platforms that use AI algorithms to evaluate the risk profile and users’ payment capacity.
    • Personal and business financial management services that use artificial intelligence algorithms to optimize finances and decision making.
  • Education, training, advice and digital and financial consulting with AI:
    • Interactive digital financial education platforms that use differentiating elements such as behavioral economics, gamification, augmented reality, artificial intelligence, among others to motivate and stimulate the learning of concepts, generate skills and responsible use of financial and digital tools, and promote positive changes in financial behaviors.
    • Personalized financial product comparison platforms that use data analysis and machine learning to identify the preferences, risk profile and objectives of each client, and offer them the options most appropriate to their financial situation and return expectations.
  • AI-based solutions with a govtech, regtech and/or suptech focus:
    • Solutions with focus on govtech that use artificial intelligence to facilitate interaction between the government and citizens, through the use of chatbots, sentimentanalysis, among others, which allow, on the one hand, to strengthen consumer protection and, on the other hand, offer more efficient, transparent and accessible financial services.

Eligibility Criteria

• Legal entities legally constituted and that have operations in a CAF member country: Argentina, Antigua and Barbuda, Barbados, Bahamas, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominica, Ecuador, El Salvador, Spain, Grenada, Honduras, Jamaica, Mexico, Panama, Paraguay, Peru, Portugal, Dominican Republic, Trinidad and Tobago, Uruguay and Venezuela are eligible.
• Applicants must be developing technology-based projects focused on inclusion and financial education, specifically in one of the categories and subcategories.
• Applicants’ projects must be generating income and actively operating in the market.

For more information, visit CAF.