ImpactAlpha, June 11 – Only about 30% of Filipinos have a bank account and to access credit, they often have to resort to predatory lenders and pay punishingly high interest rates.
Cashalo offers small loans to individuals on a mobile platform using non-traditional credit scoring methods to assess risk. It launched last year as a joint-venture between Filipino billionaire John Gokongwei and fintech startup Oriente, who have pledged to invest $200 million into the venture over the next three years. Cashalo officials said the country’s high mobile penetration rate, its tech savvy population and the low use of credit cards will help boost its success.
- Small loans… First-time borrowers can apply for loans of 3,000 to 5,000 Philippine pesos ($65 to $95).
- Inclusive banking… The name is a play on words between “cash” and the Filipino word for “inclusions”.