There are approximately 2 billion financially under served people globally and micro loans help fill that gap. A Santa Monica based FinTech company is on a mission to bring access to cash to people in emerging markets around the globe.
TALA is a mobile technology and data science company changing the way credit scoring and financial services work in the under served global financial markets.
Their app, currently on Android instantly evaluates, scores customer applications for credit worthiness using only the data on their mobile devices and delivers customized micro loan offers in minutes. Micro loan funds are then deposited directly into the customers mobile wallet in less than a minute.
Simple? Not so.
More than 10,000 data points go into TALA’s underwriting models helping score even those with no credit or banking history. Repayment terms typically range from three weeks to three months with rates from 7% – 15%. Good borrowers over time can increase their limits and lower their rates and have more control and choice.
Traditional underwriting models for loans and micro loans in the financial sector are based on credit data and not smartphone data. This new underwriting model does have significant risk in terms of managing a healthy portfolio and TALA has exceeded expectations.
More than a million micro loans originated in increments of $10 – $250 totally more than $50 million. A very strong repayment rate of over 90% helps minimize exposure, delinquency and bad loans. 95% of their customer base comes back for more cash proving the huge appetite for cash globally and the lack of providers in the space.
Leading this charge is Shivani Siroyais the founder and CEO of TALA who was recently listed as one of the 10 Amazing Women Leaders. Having secured $30 million in new financing so far in 2017 Siroyais is focused on growth and expansion.
With operations in Los Angeles, Manila and Nairobi, entering new markets and increasing product value is important to TALA’s business goals and objectives.