As many Filipinos still do not have access to traditional credit cards or small-ticket credit through banks, BillEase offers a solution that allows them to meet this financial need.
BillEase CEO and co-founder Georg Steiger explained to the DAILY TRIBUNE that the lack of access to small-ticket credit stems from the limited offerings of traditional banks. Many Filipinos earning P15,000 to P25,000 monthly can only afford credit “that is maybe up to P50,000.”
He further noted that traditional banks find small loans too costly to underwrite manually because the process involves extensive verification and labor. As a result, banks tend to avoid small-ticket credit since it is not cost-efficient.
BillEase, on the other hand, provides a solution through automated underwriting powered by artificial intelligence and machine learning, allowing for a faster and more efficient loan approval process. Through the BillEase system, customers receive a decision within a minute after signing up.
“We run a lot of checks in the background to make sure that it makes sense to give you credit and you can afford this. But it's all automated, and therefore it’s quite cheap to operate, and we can do small-ticket loans,” Steiger explained.
BillEase also helps customers build their credit history, which can later qualify them for traditional bank loans or credit cards.
“BillEase is an enabler to get people who are fairly fresh to credit into the formal banking and financial system,” Steiger said.
The platform offers a minimum credit limit of P500, typically ranging from P2,000 to P6,000, with a maximum limit of P50,000. After a loan is completed, the fintech company reviews a customer’s repayment history, which may lead to an increase in their credit limit over time.
This setup is ideal for everyday small transactions, which typically come with no fees or interest “as long as you pay on your next payday,” Steiger said. “It becomes almost like a credit card without the plastic,” he added.
Additionally, payments are made convenient through QR codes, which users can scan and pay via any banking app or e-wallet.