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Mobile app offers financing options to unbanked Filipinos

Pic Credit : Manila Bulletin

In a bid to accelerate financial inclusion in the Philippines, Cashalo officially launched its standalone mobile app.

As reported, Cashalo delivers access to affordable and secure credit for millions of underbanked consumers and MSMEs in the Philippines who need access to reliable and trusted financing options.

It is a Filipino technology and financial services company whose app provides consumers with access to the following services:

  1. Multiple purpose-based financing options such as small cash loans, consumer goods financing, among others
  2. A service that is paperless, collateral-free and available 24×7 through their own mobile device
  3. The lowest non-bank interest rates on the market, as low as 3.95%, with no hidden fees
  4. Real-time credit-scoring
  5. A choice of repayment schedule
  6. Approval in as fast as 10 minutes

Cashalo is proud to be sharing a common mission with the Bangko Sentral ng Pilipinas (BSP), which is accelerating financial inclusion in the country.

Promoting responsible and customer-centric innovations has been the core theme of BSP’s financial inclusion initiatives.

Innovative digital solutions can potentially transform the lives of Filipinos by making financial services more convenient, affordable and contextualised to their needs and aspirations.

By leveraging next generation mobile and data technology, Cashalo has already empowered tens of thousands of Filipinos to take control of their financial futures since its beta-launch a few months ago.

Any consumer can apply for a Cashaloan any time whenever they need access to credit via the mobile app.

They can use their loans for tuition fees, household expenses, specific consumer goods, emergencies, or to start and grow their small businesses.

Consumers are in full control as they can keep track of their loan application status and repayment schedule.

The latest addiction to the offering is CashaQuick. It allows consumers to access a loan amount as small as US$ 28.34 (PHP 1,500), with just one valid ID.

It has also pioneered an exciting offline to online (O2O) consumer financing product called Cashacart.

This product, which has been in pilot since August, allows consumers to access a digital credit line for their specific shopping needs at retail stores.

This will enable them to purchase multiple products across a retail network of 250 partners covering electronics, appliances, and household items, among others.

Cashalo believes in purpose-based lending and has refined its suite of innovative products based on feedback from tens of thousands of consumers.

At the core of app’s unique product offering is the company’s ability to build on the technology infrastructure of Oriente.

The company leveraged on this and is able to collate and analyse a variety of alternative data signals including social consumer behaviour.

Thus, enabling it to develop reliable alternatives to risk and credit assessments in real-time.

Based on the Financial Inclusion Survey 2017 of the BSP, over 77% of the Philippine adult population remains unbanked.

Hence, it has become very difficult for traditional financial institutions to gain access to any financial or behavioural data points to analyse, on a majority of the population.

Existing financial systems were not designed to cope with tens of millions of new customers that came with rapidly increasing populations, or the opportunity risk that came with them.

Cashalo offers a reliable alternative to traditional credit assessment models that is purpose-built for the unbanked majority of consumers and MSMEs in the Philippines, thereby unlocking economic potential for millions.

Moreover, it understands that increasing awareness and understanding through financial literacy efforts is equally critical.

This will enable millions of Filipinos with no credit history to build financial identities to elevate their economic well-being and participate in the global economy.

The company recently partnered with a social-development NGO called Knowledge Community.

This is to develop a nation-wide, grassroots community engagement program to drive financial awareness and foster financially responsible habits through a set of simple learning modules.

The learning modules aim to guarantee that a wide demographic of Filipinos is able to attain a degree of knowledge, aptitude, and skills necessary to be more financially aware and responsible.

The program is currently underway in Metro Manila and will be rolled out in key cities in Visayas and Mindanao by mid-2019.

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