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CountryMexico
Case of useCollections
ProductDirect Debit
GoalIncrease repayment rate
About ALVOS
ALVOS provides microloans to over 300,000 customers and has processed 900,000 applications in a year.
ALVOS is an online lending fintech that has transformed Mexico’s microcredit market in just over a year and a half. Founded with the mission of helping customers achieve their financial goals, ALVOS has become a key platform for individuals who, for various reasons, lack access to traditional banking services. Starting with just five employees and 300 clients in its first month, the company has experienced exponential growth. Today, it serves more than 300,000 active customers and has processed over 900,000 loan applications, reinforcing its commitment to providing accessible and personalized financial solutions.
THE CHALLENGE
ALVOS faced a rising default rate of 38%
Like many microcredit-focused fintechs, ALVOS encountered a significant challenge: payment recovery. While its digital model allowed it to offer fast and efficient loans, it also exposed the company to a high risk of default. Without physical contact with customers and with a rapidly growing portfolio, fraud risk became a critical concern.
During its first six months, ALVOS maintained a relatively low default rate of 28% for the industry. However, as its portfolio expanded, the default rate surged to 38%.
Additionally, the initial attempt to implement direct debit directly with banks posed multiple obstacles. Bureaucratic hurdles and strict regulations made the process cumbersome, negatively impacting loan recovery rates and operational efficiency. ALVOS needed a solution that not only improved payment recovery but also ensured transparency and security for customers—key pillars of its value proposition.
THE SOLUTION
Belvo enabled ALVOS to connect with multiple financial institutions through a single integration
Initially, ALVOS used Belvo’s platform to recover between 150,000 and 180,000 pesos per month—a modest amount given its portfolio size. However, in the past two months, that figure has grown exponentially, reaching over 1.3 million pesos in monthly recoveries, now accounting for 4% of the company’s total recovery.
Belvo’s implementation has allowed ALVOS to scale operations sustainably and improve customer relationships. Thanks to transparent direct debit terms, customers now better understand the process, and ALVOS has significantly reduced complaints related to automatic payments. This new approach has not only enhanced the company’s credibility and trustworthiness but also deterred fraudulent customers.
HOW IT WORKS
After selecting direct debit as a payment method, the user provides their CLABE (bank account number) to the company.
Once ALVOS has the CLABE, the user gives consent for automatic withdrawals from their bank account.
With the user’s authorization, ALVOS can collect payments automatically at the required frequency, directly through the bank.
THE RESULTS
With Belvo, ALVOS increased its monthly loan recovery to 1.3 million pesos, reduced complaints, and improved customer retention.
Increase in monthly recovery
The implementation of Belvo’s direct debit solution allowed ALVOS to boost its monthly loan recovery from 150,000–180,000 pesos to over 1.3 million pesos in just two months.
4% contribution to total recovery
While Belvo currently accounts for 4% of ALVOS’ total recovery, the company aims to scale this to 30–40% in the coming months through automation and continuous improvements in the collection process.
Reduction in customer complaints
Despite portfolio growth and rising default risks, Belvo’s integration has enabled ALVOS to maintain stricter control over payments and continue offering accessible financial services to a larger customer base.
WHAT THE CLIENT SAYS
"Since implementing Belvo, our recovery capacity has taken a major leap. Not only have we increased our monthly recovery by over a million pesos, but we’ve also gained something even more valuable: trust and transparency with our customers. Belvo has allowed us to automate a previously inefficient process, and we can now see the results both financially and in customer satisfaction. This partnership has been crucial to our growth, and I’m convinced it will be a key part of our future strategy."
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