Fintech lender Tala Philippines is doubling down on real-time data and artificial intelligence as it seeks to expand access to financing for the country’s vast but underserved micro, small, and medium enterprise (MSME) sector.
Speaking at the recent Money20/20 Asia conference, Tala Philippines General Manager Moritz Gastl said advances in real-time infrastructure, alternative data, and embedded finance are transforming how lenders evaluate risk and deliver credit to small businesses.
The shift is particularly significant in the Philippines, where MSMEs account for more than 99 percent of registered businesses but often struggle to secure financing due to limited credit histories and traditional collateral requirements.
“Many of our customers are already entrepreneurs in practice,” Gastl said, noting that short-term loans are frequently used as working capital to support daily business operations.
Tala currently serves around 4.5 million customers in the Philippines, with approximately one in four borrowers using loans for business purposes. The company said nine out of 10 borrowers reported improved business prospects after gaining access to credit.
The figures underscore a growing trend in digital finance: using technology to assess borrowers based on behavior and transaction patterns rather than relying solely on conventional credit metrics.
According to Gastl, Tala’s lending decisions are powered by machine-learning models trained on billions of data points accumulated over more than a decade. The approach allows the company to generate more nuanced risk assessments and extend credit to borrowers who may otherwise be excluded from the formal financial system.
The company is also expanding its embedded finance strategy by integrating lending services into digital platforms used by entrepreneurs, bringing credit closer to where business transactions actually occur.
Beyond growth, Tala said it is investing heavily in fraud prevention and responsible lending. Its AI-powered monitoring systems and “Debt with Dignity” framework are designed to promote sustainable borrowing while protecting customers from financial distress.
As digital adoption accelerates, Tala believes data-driven lending can play a larger role in narrowing the country’s financing gap and helping micro-entrepreneurs grow from survival mode into sustainable businesses.
