Tala targets over 30-M small clients

Tala Philippines, a loan app provider, is reaching out to Filipinos in non-urban areas to expand its client base from 3.5 million to 30 to 40 million.

“We’ve done multiple trips to Davao and Iloilo, but we also look at the outskirts. We want to grow that further,” Tala Philippines general manager Moritz Gastl told Daily Tribune on its online show Straight Talk.

Since Tala started operations in the country eight years ago, the firm has distributed loans amounting to P110 billion. Globally, Tala has lent over P350 billion or $6 billion.

Aside from the Philippines, Los Angeles-based Tala offers serves clients in Mexico, Peru, and Kenya, which is its first market.

“Philippines is a key market. We realized that its underserved population is massive or around 60 to 70 million people,” Gastl said.

Tala offers loans of up to P25,000 to multiple income classes or the global majority.

“It includes everyone that cannot access financing through traditional channels, so it’s not just the ones at the bottom but everyone in between the top and bottom. At least 52 percent of the global population needs financing,” Gastl said.

Most needy

He said many of Tala clients are teachers, drivers, house helpers, and small entrepreneurs.

“During the pandemic, the market grew much larger as inflation is still quite high in the Philippines,” Gastl said.

Gastl said it has attracted clients through affordable interest rates of as low as 0.43 percent per day on the clients’ first loan and flexible repayment terms.

“It’s about building relationships. You give the customers what they expect but when they run into trouble, you give them flexibility. Some repay 31 days later,” he said.

Gastl stressed Filipinos are honest borrowers, resulting in the lender’s 94 percent repayment rate.

Through a smart data analysis system, Gastl added Tala quickly determines whether a borrower has some financial capability.

“Over the last 10 years, we’ve built an algorithm. We get a lot of data from customers. For example, we ask what kind of device you have or where you are located. We can instantly say if you’re eligible for a loan,” he said.

To extend its lending and repayment channels, Tala partners with other industry players like digital bank Maya, traditional banks, and pawnshops.