Woveo: Community Wallet for Savings and Credit Building

A large portion of the global population is deemed "credit invisible" or "unscored," with no credit history or a credit score that is too low to qualify for credit products. This creates a significant barrier for individuals who want to access loans, credit cards, or other financial services. The World Bank estimates that around 1.7 billion adults worldwide, or 45% of the global adult population, are unbanked or underbanked, with limited or no access to formal financial services. In North America, there are over 132 million consumers who are credit invisible, or 23% of the North American population.

The lack of credit history or a low credit score presents a range of challenges for individuals and families, including immigrants. A study by the Federal Deposit Insurance Corporation (FDIC) found that in the United States, immigrants are more likely to be unbanked or underbanked than the general population. In 2019, 14.1% of foreign-born households in the US were unbanked, compared to 5.4% of US-born households. Additionally, 31.2% of foreign-born households were underbanked, compared to 18.7% of US-born households. Newcomers to a country often face difficulties in building credit history, as their credit history from their country of origin is not transferable. Additionally, they may not have established financial relationships, such as a bank account, and may have limited access to financial products and services. Immigrants with no credit history or a low credit score may find it challenging to obtain a mortgage, secure a car loan, or even get approved for a credit card. This can make it difficult to build assets, such as a home or car, that are often necessary for economic mobility. In addition, credit invisibility can lead to higher costs for basic services, such as utilities and insurance, as these providers may require a credit check to determine eligibility or charge higher rates to those with no credit history. This can exacerbate financial insecurity for those who are already struggling to make ends meet.

Overall, credit invisibility and unscored individuals, including immigrants, face significant economic challenges and barriers to financial stability. Addressing this issue requires a comprehensive approach that includes changes to credit reporting practices, increased access to financial services, and support for those who have been historically excluded from credit markets. By taking action to address credit invisibility, we can help ensure that all individuals, including immigrants, have the opportunity to build wealth and achieve financial security.

Woveo is a community wallet for rotational savings and credit-building. We help newcomers build credit and better lives through community savings. Our technology enables groups of people to self-organize, pool funds instantly and share payments. More specifically, we offer two key solutions:

Credit and savings groups - Woveo solves the problem of access to credit and credit building for thin-file consumers by utilizing a community-driven approach. Participants can pool their savings to access credit by using a rotational savings model and, importantly, build credit profiles with the repayment history. Woveo, as mandated as an accredited lender of the Canadian Lenders Association, reports all payment activities to Equifax as installment tradelines. Cooperative savings provide access to no-interest loans, build credit and increase savings over time.

Spend Management - Woveo provides laddered services to these financial communities of interest, offering prepaid card programs to enable users to spend their wallet balance and incentivize them to spend at community-based businesses to earn rewards. This is part of our vision of building a digital-first community banking platform where communities can save, borrow, spend and invest together to build community wealth.

To ensure the security and reliability of its platform, Woveo has deployed three environments to AWS: development, staging, and production. The company's architecture is managed with Terraform, allowing us to modify any infrastructure requirements without manual interaction. Auto-scaling rules are in place, load balancers, and high availability for its production environment. Additionally, virtual private clouds (VPCs) and subnets have also been configured for all three environments.

Woveo's current stack has been developed in a monorepo, allowing us to have one single code base that shares resources between the app, the web app, and the backend. One single API handles all the requests, including the third-party vendor services for user screening and transactions. This approach allows Woveo to streamline its development process and make updates to its platform more efficiently.

Woveo's technology is designed to provide a secure and user-friendly platform for its community-driven approach to credit building and spend management. By partnering with banks and payment processors, Woveo can ensure the safety and reliability of its platform while leveraging technology to provide a comprehensive assessment of creditworthiness.

Woveo's solution targets newcomer communities with the aim of providing financial health and retention services to help improve their access to credit and help them build wealth.

Newcomer communities are a significant market opportunity, with over 60,000 communities in North America serving more than 132 million individuals, many of whom are newcomers and local mom-and-pop SMBs with limited access to credit. Immigrants account for 75% of population growth, but they often face barriers to accessing affordable credit, which makes it challenging for them to build a new life. Woveo's platform aims to provide a secure and accessible way for these individuals to self-organize, pool funds instantly, and share payments, thereby enabling them to build a credit history and access credit in the future. By targeting this overlooked demographic, Woveo aims to provide financial empowerment and inclusion, ultimately helping these communities to thrive.

Woveo's solution aims to address the needs of these underserved populations by providing a secure and accessible platform that enables individuals to self-organize, pool funds instantly, and share payments. Woveo is helping to build credit histories for individuals who may not have access to traditional financial institutions. By providing affordable credit and financial health services to these underserved populations, Woveo could help many individuals build a new life, purchase necessary goods and services, and improve their credit scores. This could result in improved economic mobility, increased financial security, and greater opportunities for small businesses to thrive.

The Woveo founding/leadership team has faced first hand the challenges that our target population faces regularly. We were all newcomers to Canada in the past, and personally faced the same challenges that we've outlined in this application. While our professional experiences attest to how we can successfully grow this company, our personal experiences trying to access the Canadian financial system as newcomers is what's critical to building a product that will truly serve the communities we work with. We continue to be deeply rooted in these communities and work with them to gather feedback on what they truly want from our product. Bios for the founding team are below:

Jonah Chininga is the CEO and co-founder of Woveo. Jonah moved to Canada and was faced with financial challenges around accessing credit, building credit and being underserved by the current financial system, because he was a Newcomer with no Canadian credit experience. This experience, and exposure to the practice of rotational savings, led him and his co-founders to found Woveo

Maryheth Cabrera is the co-founder and CPO at Woveo. Having immigrated to Canada in 2018, Maryheth knows first-hand the financial struggles of joining a new economy; this experience has fueled her unwavering commitment to her work at Woveo and given her a distinctive perspective on the obstacles faced by individuals and businesses when navigating similar situations. She profoundly understands emerging technologies and industry trends and is dedicated to delivering outstanding results through creative problem-solving and technical expertise.

Sergio is the co-founder and CTO of Woveo. Sergio's entrepreneurial journey began with the creation of Agama in Colombia, which he later expanded to Canada in 2018. During this time, he encountered firsthand the economic barriers that newcomers face. Despite his experience with multiple startups in Canada, Sergio is deeply committed to Woveo's ethical mission and is dedicated to delivering the best technology solutions to communities. 

James Muhato is a passionate community leader and accomplished business professional, currently serving as the co-founder and COO of Woveo. James managed a provincial funding program that invested in local regulatory bodies and associations to build capacity for credential recognition, professional training, and support. This work was a turning point for James, where he gained a deep understanding of the barriers and challenges that immigrants face when migrating to a new country. He is interested in the study of communities, banking, and finance, with a particular focus on the intersection of communities and access to financial services. With ten years of experience in business development and managing programs, James is a dedicated community servant, always looking for ways to positively impact those around him.

We're in Beta with 1,000 users and 16 communities with 14,450 members on the waitlist

We are applying to Solve for a few critical reasons. First, as a purpose-driven company, we would greatly benefit from joining Solve’s powerful network of impact-minded leaders who could advise us from the lens of not only building a successful business, but building an impactful one. Second, we want to connect with peers in Solve’s network to chat with other purpose-driven individuals in the space to learn from them while sharing our own experiences. Third, we want to utilize the funds from the competition and any subsequent investment that may occur to catalyze our growth so that we can grow our reach and have a real impact on credit invisible populations faster.

Woveo's solution approaches the credit invisible problem in a new and innovative way by leveraging technology to create a secure and user-friendly platform that allows groups of people to pool funds and share payments. This approach is unique because it provides an alternative to traditional banking systems, which often have stringent credit requirements that exclude individuals who are credit invisible.

Unlike traditional banking systems, Woveo does not require users to have a credit history or a bank account to use its services. This is made possible through our partnerships with banks and payment processors, which allow users to link their Woveo account to a bank account or debit card. Our technology also enables users to self-organize, pool funds instantly, and share payments with ease, making it a convenient and accessible solution for the credit invisible population.

Woveo's solution will catalyze broader positive impacts from others in this space by demonstrating the viability of alternative financial systems and encouraging more companies to invest in technology-driven solutions for financial inclusion. As more individuals and communities are empowered to access financial services, they will be better equipped to participate in the global economy and improve their standard of living. This will drive economic growth and contribute to the achievement of the United Nations Sustainable Development Goals, particularly goal 1 (No Poverty) and goal 8 (Decent Work and Economic Growth).

Furthermore, Woveo's approach will change the market by disrupting traditional banking systems and encouraging competition among financial service providers. This could lead to more innovation in the financial sector, which will benefit not only the credit invisible population but also other underserved communities. By demonstrating that there is a large market for alternative financial services, Woveo will encourage other companies to invest in similar solutions and ultimately contribute to a more inclusive and equitable financial system.

In summary, Woveo's solution is innovative in its use of technology to create a secure and accessible platform for financial inclusion. Its approach will catalyze broader positive impacts by encouraging more companies to invest in technology-driven solutions for financial inclusion, and it will change the market by disrupting traditional banking systems and encouraging competition among financial service providers. Overall, Woveo's solution has the potential to drive economic growth, reduce poverty, and promote greater financial inclusion for all.

We aim to help 50,000 users improve their credit scores (on average 168 points/year), access affordable credit and increase their savings over the next year. Our goal is to reach 1 million people by 2028 and help them to build wealth. Our impact goals include:

Increased financial inclusion: Credit building services help credit-underserved people build credit histories, which is often a key barrier to accessing financial services such as loans, credit cards, and mortgages. By helping people establish credit, we can increase their access to financial services and promote financial inclusion.

Improved economic mobility: We help new immigrants improve their credit scores and financial literacy by providing them with tools and guidance to manage their credit more effectively. Improving credit scores can help people qualify for better interest rates and terms on loans and other financial products, reducing the cost of borrowing and building wealth long-term.

Greater financial stability: We can promote greater financial stability by helping credit-underserved people build credit and improve their credit scores. With access to credit, people can better manage unexpected expenses and take advantage of opportunities to invest in education or start a business.

We measure our impact through:

Access to financial services - we measure the number of active transacting users. This indicates how many people we are enabling with access to financial services. This also indicates the extent to which our products and services reach underserved populations, such as low-income individuals and new immigrants. 

Credit Health - we measure the repayment rate and cost of payment obligations. This is an important measure of financial behaviour and wellness because it reflects our user's ability to manage their debt and meet their financial obligations.

Financial stability - we measure this by the total assets under management and the savings rate per user. This is a signal of the ability of users to cover unexpected expenses

Community Economic Impact - we measure this by business ownership and homeownership growth in communities. Credit is important for building wealth because it allows individuals to access financial resources that can help them invest in assets that appreciate in value and generate income over time. Our mission is to build community wealth by enhancing how communities and capital work together. 

Woveo's solution has the potential to impact the credit invisible population globally in a positive way. By offering a community-driven approach to credit building and savings, Woveo can provide a solution for individuals who may not have access to traditional banking systems. This includes immigrants, refugees, and those with thin credit files, who may struggle to access credit and financial services due to a lack of credit history or other factors.

By utilizing a rotational savings model, Woveo allows participants to pool their savings to access credit and build credit profiles with repayment history. This can help individuals establish creditworthiness and gain access to more traditional forms of credit in the future. Additionally, Woveo's reporting of payment activities to Equifax as installment tradelines can further help build credit history and improve credit scores.

Moreover, by providing prepaid card programs and incentivizing spending at community-based businesses, Woveo can help build community wealth and support local economies. This can have a positive impact on individuals and communities who may otherwise struggle to access financial services and resources.

Research conducted by the Aspen Institute found that access to safe and affordable credit is a significant barrier for low-income households, immigrants, and other vulnerable populations. This lack of access to credit often leads to reliance on predatory lenders, which can result in a cycle of debt and financial instability. Community-based savings and credit-building models, like Woveo's, can break this cycle by providing access to credit through community-driven approaches.

Additionally, research conducted by the World Bank found that community-based savings and credit models have been successful in improving financial access and inclusion in low-income communities in several countries. The report found that these models are effective because they rely on trust, social capital, and shared values within communities to mobilize savings and distribute credit. Woveo's platform is built on these same principles of trust and social capital within communities, providing a proven path to financial inclusion for credit-invisible populations.

Woveo has developed a unified platform that seamlessly integrates a mobile application, a web application, and a backend. This unified platform allows users to access the same information across different devices, whether they are using a mobile device or a desktop computer.

The platform is built in a monorepo architecture, therefore we have a single code base that shares resources between the app, the web app, and the backend. This approach saves us time and resources by preventing the need to maintain multiple code bases for each application.

To manage the platform's various components, we uses a single API that handles all requests, including those for third-party vendor services for user screening and transactions. This helps ensure that the platform is secure and that user data is protected at all times.

Woveo has deployed three environments to AWS: development, staging, and production. This allows the team to test changes in a safe environment before deploying them to the production environment. The architecture is managed with Terraform, a tool that allows us to modify any infrastructure requirements without manual interaction.

In addition, Woveo has implemented auto-scaling rules and load balancers to ensure high availability for the production environment. This means that the platform can handle increased traffic without downtime or performance issues. We have also configured Virtual Private Clouds (VPCs) and subnets for all three environments, providing an extra layer of security for user data.

Our founding and leadership team is composed entirely of visible minority immigrants to Canada, one of whom is a woman. The rest of our team is also composed of visible minorities. Our company’s mission is focused on improving equity for marginalized groups, and this extends to our hiring practice. We understand the challenges that marginalized groups face when attempting to enter the workforce, and we approach each candidate with compassion, empathy and understanding to ensure we understand their full story and potential before coming to a decision. For current employees, we strive to create an environment that is inclusive, safe and supportive.

We generate revenue through two means. First, a $5/per user/month subscription fee, paid by the newcomer or community organization. We also earn an interchange fee of 100 basis points (1%) for every transaction. This simplified and affordable price structure will give communities access to a community wallet to help their communities save money, build credit and spend the money they’ve saved at community-based businesses to support their community further. Our product includes a web app, a mobile app with a virtual card, and will include a physical card in the near future, all of which are accessible at no extra charge. This provides users with convenience and flexibility for their banking needs

We are currently raising a private equity round to fund our activities, focused on product development and customer acquisition. We will also pursue non-dilutive funding to limit the dilution of our company. We also plan to use our revenues to sustain our activities and are forecasted to be cash flow positive by Q4 2024

We previously received a $33K grant from NRC IRAP to fund the development of our product. We also won second place at the inaugural 2022 Calgary FinTech Awards, which came with a $60K cash prize. We generated $8K in revenue in 2022. We raised a pre-seed round of $1.5M last September, and are currently raising a pre-seed extension round of $2M.