Credit as a Service Expands Access to Credit and Creates Business Opportunities in Latin America

Credit as a Service (CaaS) has played a key role in expanding access to credit in Latin America, allowing businesses to provide innovative financial solutions without the need for proprietary infrastructure or regulatory licenses.

The financial sector in Latin America is undergoing a technological transformation. With a combined GDP of $6,4 trillion and a population of over 666 million, the region would rank as the third-largest economy in the world if it were a single country. Despite this significant economic activity, 91 million Latin Americans—about 26% of the region’s population—do not have a bank account, according to a Mastercard and World Bank report. .

This scenario not only highlights the lack of access to financial services for a large segment of the population but also creates a fertile ground for financial sector innovation. A prime example of this is the rapid expansion of fintechs in Latin America. According to a report by the Inter-American Development Bank (IDB), the number of financial and banking startups increased from 703 in 2017 to 3.069 in 2023. Notably, more than 57% of these businesses are focused on serving the unbanked population.

Within this context, the Credit as a Service (CaaS) model has empowered banks, fintechs and companies across various industries to seamlessly offer credit in an integrated, agile, and tailored way—without having to build their own infrastructure.

In this article, we explore the features, benefits, and opportunities that the CaaS model brings, with a special focus on Latin America. We also explore how this approach fosters financial inclusion, while benefiting small and medium-sized enterprises (SMEs). Additionally, we examine how CaaS simplifies credit offerings, the technological advancements that support this model, and the process of implementing a credit platform.

 

What is Credit as a Service (CaaS)?

 

Credit as a Service (CaaS) is a technological infrastructure model that streamlines and accelerates credit offerings through an flexible, outsourced, and advanced architecture.

This model enables fintechs, banks, and companies to seamlessly integrate credit issuance services into their existing operations without having to build an in-house team, develop technology from scratch, or navigate complex regulatory challenges.

By adopting CaaS, businesses can focus on enhancing customer experience and creating value, while the service provider takes care of technical and regulatory complexities.

Technology providers specializing in financial services, such as Dock, further enhance the accessibility of this model, allowing companies to effortlessly integrate financial solutions into their operations.

This approach democratizes access to financial products that were once exclusive to large institutions, opening doors for new players to enter the market with tailored, scalable, and more accessible solutions for the general public.

 

How Does Credit as a Service Work?

 

The Credit as a Service model operates as an integrated, highly flexible solution, allowing any business to efficiently offer credit services. The process begins with API-based integration, connecting a company’s system with the credit provider’s infrastructure.

These APIs facilitate real-time communication, creating a seamless technology network that supports the full credit lifecycle—from origination and approval to collection and monitoring. Additionally, these API connectors establish data channels with public and private databases, providing critical insights for assessing consumers' creditworthiness.

 

Key Features of CaaS

 

• API Integration: Enables rapid deployment by connecting business systems to credit platforms, providing real-time data access and analysis.
• Risk management: Leverages public and private databases to conduct comprehensive and accurate consumer assessments, reducing defaults and enhancing operational security.
• Scalability: Adjusts to each company’s needs, ensuring that credit supply aligns with customer demand.
• Customization: offers flexible credit products, allowing businesses to tailor interest rates, terms, and limits based on consumer profiles.
• Plug-and-Play Model: enables organizations to seamlessly integrate credit solutions into their service ecosystem quickly and efficiently.

 

CaaS White-Label: Credit with Your Brand’s Identity

 

By enabling companies to integrate credit solutions into their ecosystems without the need to develop proprietary infrastructure, Credit as a Service (CaaS) makes white-label credit possible—a customized way to offer financial products and services directly to end consumers.

Through this approach, banks, fintechs, and companies can provide credit cards or loan services under their own brand and visual identity, strengthening customer loyalty and expanding market presence.

This model is particularly attractive for organizations looking to diversify their business models, expand revenue streams, and reach new audiences—without shifting focus from their core operations.

 

Benefits of White-Label Credit

 

• Brand reinforcement: by launching financial products under their own brand, companies strengthen customer relationships and enhance market credibility.
• Customer loyalty: Tailored credit solutions foster a stronger connection between businesses and consumers. Proprietary credit programs enable companies to offer exclusive benefits—such as cashback, discounts, and special terms— encouraging long-term loyalty.
• Increased sales: Easy access to credit stimulates spending, allowing customers to purchase higher-value products and services under terms that fit their monthly budget.
• New revenue streams: interest rates, fees, and other credit-related services serve as additional sources of profitability for companies.

 

The Credit Market in Latin America

 

Latin America is a dynamic credit market with significant potential for growth and financial inclusion. Despite structural challenges such as high unbanked rates and elevated interest rates, the region is positioning itself as a hub for financial innovation.

This was one of the key topics explored in "Terras de Oportunidades 2nd Ed. – The Financial Power of Latin America”", a study conducted by Dock’s Research and Market Intelligence team, which mapped out the trends shaping payments and financial services across the region.

As highlighted in the study, 91 million Latin Americans still do not have a bank account, and small and medium-sized entrepreneurs often struggle to access credit lines due to bureaucratic hurdles and high default risk.

At the same time, the rise of financial technology has fueled the expansion of new credit models, such as Buy Now, Pay Later (BNPL), improving credit accessibility for underserved populations.

 

Challenges and Opportunities in the Latin American Market

 

• High Unbanked Rates and Informal Credit : While many consumers and businesses struggle to access formal credit, alternative lending models—such as peer-to-peer loans and unregulated consumer credit—are filling the gap. In countries like Mexico and Peru, 50% and 40% of the population, respectively, do not have a bank account, significantly limiting their financing options.
• High Interest Rates and Credit Risk : In many Latin American countries, traditional banks charge high interest rates on credit operations. This restricts access to financing and fuels the rise of alternative models, such as fintech-driven credit solutions that leverage data-driven analysis to offer fairer and more accessible credit terms.
• Expansion of innovative models: The growth of the fintech sector is a direct response to the demand for a more inclusive and less bureaucratic financial system. Models such as BNPL, digital microcredit and CaaS-powered credit platforms are emerging as viable solutions to meet the needs of the underserved..
• Technology Adoption for Financial Inclusion : The rise of financial technology has been a key factor in the expansion of credit access across the region. Artificial Intelligence (IA) and Machine Learning (ML) are now being applied to enhance credit risk analysis, allowing consumers without a credit history to access financing options more efficiently.

 

The Importance of Credit as a Service in the Present and Future of Credit

 

Given this landscape, the Credit as a Service (CaaS) model emerges as a catalyst for financial inclusion and sustainable economic growth for businesses in Latin America.

By enabling companies to offer credit quickly and in a personalized manner—without requiring proprietary infrastructure—CaaS directly contributes to expanding credit access and transforming the region’s financial ecosystem:

• Financial inclusion at scale: By making credit more accessible, CaaS allows millions of people to enter the formal economy, generating benefits that extend beyond individuals and positively impact families and entire communities.
• Entrepreneurship Growth: small and medium-sized enterprises (SMEs)—which often face challenges obtaining credit—find CaaS to be an agile and accessible financing solution for their expansion.
• Local Economic Development: increasing the purchasing power of underserved populations creates positive ripple effects in local supply chains, fostering job creation and stimulating regional economies.

 

What Are the Benefits of CaaS for Credit Providers?

 

Implementing Credit as a Service offers strategic advantages for companies looking to deliver financial services in a fast, scalable, and efficient way.

This model provides multiple benefits, including significant cost and time savings when entering the market, while ensuring the flexibility to adapt offerings based on demand.

 

Speed to market

The implementation of CaaS is fast, enabling businesses to launch new credit products and services within weeks. This significantly reduces time-to-market and operational costs, which is crucial for companies competing in fast-changing financial landscapes.

 

Scalability

Companies can flexibly adjust their credit offerings. The CaaS infrastructure enables new credit products to scale or adapt as demand fluctuates, ensuring operational efficiency without compromising service quality.

 

Risk reduction

Integrated risk assessment and automated compliance help minimize default rates, providing greater security for financial operations. AI-driven predictive analytics enhance decision-making accuracy, reducing exposure to operational risks and improving portfolio performance.

 

Customer-Centric Experience

With fewer operational and regulatory concerns, businesses can focus on enhancing the customer experience by offering a seamless, fast, and tailored credit approval process. This strengthens customer relationships, fosters higher satisfaction levels, and increases long-term loyalty.

 

Access to and Integration of Advanced Technologies

Credit as a Service unlocks cutting-edge technologies such as Machine Learning and Big Data to enhance credit risk analysis and optimize financial operations. Through API-driven integration with public and private databases, CaaS enables a more robust assessment of customer risk profiles, improving credit decision accuracy and reducing fraud risks.

 

Discover Dock’s Credit Solutions

 

Dock, the leading financial technology provider in Latin America, offers a comprehensive suite of credit solutions for banks, fintechs, and companies looking to provide financial products to their customers.

With over 20 years of experience, Dock has helped organizations across various industries diversify their business models, create new revenue streams, reach new audiences, and stay competitive in dynamic markets.

As part of its Cards & Creditvertical, Dock provides the complete technological infrastructure needed for businesses to offer credit products to their end customers. With Dock’s Credit Card as a Service, banks, fintechs, and companies can quickly implement a secure and flexible credit issuance system—without the need to hire an internal team or develop their own infrastructure. Credit Card as a Service Dock, banks, fintechs and companies can implement a credit granting system quickly, securely and flexibly, without the need to hire an internal team or create their own infrastructure.

Operating end-to-end in the credit lifecycle, from origination and approval to ongoing monitoring, Dock delivers a robust solution with a wide range of benefits:

• Regulatory Compliance & Security: Dock adheres to all local and international financial regulations, ensuring that credit operations meet the highest industry standards, providing a secure environment for businesses and consumers.
• Fast and efficient integrationThrough robust APIs, businesses can easily connect their systems to Dock’s platform, enabling seamless and secure implementation while significantly reducing time to market.
• Flexible and scalable infrastructure: Companies can expand their credit offerings as demand grows—without the need for large-scale technology investments—ensuring greater operational efficiency.
• Enhanced risk analysis: Using Machine Learning and AI, Dock optimizes credit decision-making, minimizing risk and improving accuracy in customer evaluations, ultimately reducing default rates and overall credit exposure.
• Local Market Expertise: Dock has deep knowledge of Latin America’s financial regulations and market dynamics, allowing it to adapt solutions to regional needs.

 

Want to learn more about Dock’s credit solutions? Get in touch with our team!

 

Credit as a Service: key takeaways from this article

 

• Latin America’s credit market is dynamic, facing challenges such as high unbanked rates and high interest rates, while also emerging as a hub for financial innovation.
• The number of fintechs in Latin America has quadrupled in recent years, bringing innovative alternatives that expand credit access.
• Credit as a Service (CaaS) is a technology-driven model that enables credit solutions integration without requiring proprietary infrastructure, making access faster and more efficient.
• CaaS is built on API integration, enabling automated risk assessment, secure credit issuance, and efficient payment and collection management.
• With CaaS, businesses can offer credit under their own brand, increasing customer loyalty, generating new revenue streams, and strengthening their market presence.
• In Latin America, financial exclusion, informal credit markets, and limited access to financing create challenges—but also opportunities—for innovative solutions like CaaS.
• The key benefits of CaaS include: reduced time-to-market, scalability, lower credit risk, improved customer experience, and access to advanced financial technology.
• Dock provides regulatory security, scalable infrastructure, advanced risk analytics, local expertise, and customizable solutions to meet diverse customer needs.

 

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