FinTech for the Unbanked -Promoting financial inclusion for the poor via automobile ownership and building of financial credit

Before founding GMS, founder Nakashima founded an EV startup in the Philippines to promote electric vehicles as a solution to air pollution. However, there he was confronted with a social structure where many people have the ability to earn money as long as they have a car, but are denied the opportunity to take out loans because they lack assets and credit. Faced with this reality, Nakashima felt the need to create a social system where people who truly need a car to work can own a car, and founded the company in November 2013. We have localized the system to fit the needs of each country. For example, in the Philippines, we conducted thorough interviews with over 1,000 people to calculate how much income the drivers have and how much they can afford to pay. Prior to starting the business, we coordinated with various parties including local power distribution companies and telecommunication carriers as well as the support of the Philippine local government. However, we had a hard time convincing financial institutions and investors when we first started the business because it was a new service that had never been attempted before and because the target of the business was the poor. In particular, financial institutions were cautious about lending to low-income groups due to the risk of default, although they understood that expanding loan credit would lead to business expansion. The opportunity to recover from this situation was to demonstrate the effectiveness of the business model in the market. Fortunately, GMS was able to test its business model on its own by utilizing the investment from SBI Investment Co. We are now working with many financial institutions, automobile dealers, and local governments and are expanding our services in four countries.