Tala highlights role of real-time data in reshaping SME lending at Money20/20 Asia

The recently concluded Money20/20 Asia held in Bangkok, Thailand convened players and leaders in the fintech, payments, and financial services sectors in the Asia-Pacific region. During the event, Tala Philippines General Manager Moritz Gastl lent his expertise and insights in a panel discussion titled, “Winning the SME Lending Market with Real-Time Data.”

The panel weighed in on how real-time infrastructure, alternative data, and embedded finance models are reshaping SME financing, particularly in assessing risks, personalizing credit offers and improving access to capital for small businesses.

In the Philippines, where micro, small and medium enterprises (MSMEs) are regarded as the backbone of the economy, Tala has 4.5 million customers and around a quarter of them use their loans for business purposes. Further, nine out of 10 of these customers reported their business outlook improved because of their Tala loan.

“While our foundation is built on unsecured loans, we’ve recognized that many of our customers are also micro-entrepreneurs who are using these funds for their businesses as working capital,” Gastl said. This insight has sparked Tala’s strategic pivot into the MSME space with speed as a core value proposition. “In many of our customer interviews, we found that people are already at… a store where they need to purchase something [for their business] and only start the user journey then.”

The speed and quality of Tala’s underwriting is attributed to its machine learning models that are trained on billions of data points from 12 years of customer relationships across multiple geographies. These provide deep proprietary insights that yield increasingly personalized credit offers and experiences that get better with every transaction.

Gastl also shared that Tala is increasingly becoming an embedded finance player to expand its reach and deepen its impact, offering its expertise and infrastructure to partners. Through this, they can increase their suite of financial solutions while Tala stays true to its mission of empowering the global majority by bridging gaps in financial inclusion. For micro-entrepreneurs, this strategy centers on integrating financial services directly into the digital platforms they use for daily operations.

Aside from this panel, Gastl also participated in a discussion at Policy20 that focused on the use of alternative data to create financial identities for the financially invisible.

How Tala empowers SMEs

Beyond access to credit that levels the playing field for SMEs, Tala is also shaping a safe, fair, and inclusive financial landscape where they could thrive and ultimately, achieve financial agency.

Combined with its 24/7 fraud monitoring that utilizes a sophisticated AI/ML risk management model, Tala works with regulators and industry players to proactively detect fraud patterns through investigations and intelligence sharing. It also strongly pushes for responsible debt collection practices through its Debt with Dignity advocacy, which is anchored in the belief that borrowers who are treated with kindness and respect are more likely to honor their obligations and participate actively in the formal economy.

Berla, a 34-year-old Tala customer from Baseco, Manila, used her Tala loan to start a sari-sari store as another source of income. According to her, the trust Tala has given her since 2021 is something that she has always been grateful for. “These days, it’s really not easy to find a job. I told myself if nobody will give me an opportunity then I’ll make opportunities for myself.  To those who want to start their own businesses, just trust yourself and give your best, because you’ll never know unless you really try,” she said.

“The success stories of our customers are a testament to the powerful impact of access to MSMEs. Oftentimes, micro-entrepreneurs are excluded from the formal financial ecosystem due to lack of collateral and limited credit history,” said Gastl. “We want to continue being part of their journeys by being their partner in growing their business and achieving their goals.”

Through its proprietary global technology and responsible lending practices, Tala is redefining financial inclusion for Filipinos, creating entrepreneurs who are empowered to start and scale their businesses with confidence.

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