Klar bags $190m in new funding to capture a big credit opportunity

Hey Toaster Readers,

Happy July 4th!

This week, the battle for your wallet is heating up from every angle. In Mexico, the fintech scene is exploding, with Klar pulling in a massive $190 million in funding at a reported $800 million valuation. We’ll look at why investors are so bullish on a market where five big banks still control 85% of loans.

Meanwhile, the very nature of credit is being reshaped. In the U.S., lenders are finding a booming market in foreign grad students, betting on future salaries up to 15 times higher than their current income. But it's not all smooth sailing; a new study reveals one in three Canadian households are carrying credit card balances.

The biggest disruption, however, might be coming from crypto. Visa and Mastercard are racing to tame a $253 billion stablecoin threat that could completely bypass their networks. We'll also explore how the fallout from the Wells Fargo scandal is still pushing borrowers toward fintechs and how AI is now making 99.6% of some lending decisions in just two seconds.

There's a lot to break down. Let's get to it!