Product Overview of Tala
Tala is a mobile technology and data science company that specializes in providing financial services, particularly instant credit, to underserved populations in emerging markets such as Kenya, Tanzania, and the Philippines.
What Tala Does
Tala’s primary mission is to build financial identities and deliver instant credit to individuals who lack traditional credit histories. This is achieved through a user-friendly Android application that leverages alternative data and advanced machine learning algorithms to assess creditworthiness.
Key Features and Functionality
1. Instant Credit Access
- Users can apply for credit directly through the Tala app, without the need for collateral or extensive paperwork. The application process is streamlined, and decisions are made instantly based on data from the user’s smartphone.
2. Alternative Credit Scoring
- Tala uses over 250 data points, including device data and behavioral patterns, to create a personalized credit score. This includes information such as phone usage, social connections, and financial transactions, which are more indicative of creditworthiness than traditional credit scoring methods.
3. User-Friendly Application Process
- Upon downloading the app, users are required to answer a few short questions and grant access to their smartphone data. This data is then analyzed using machine learning algorithms to determine credit eligibility. The entire process can be completed offline, and 85% of customers receive their loan within 2 minutes.
4. Flexible Loan Options
- Tala offers flexible loan terms, allowing users to select a repayment date that suits them, with payment periods ranging from 15 to 61 days. The loans are uncollateralized and range from $10 to $500.
5. Additional Financial Services
- Beyond credit, Tala provides a range of financial services including bill payments, cash transfers, and savings options. The Tala Wallet, an e-money instrument, allows users to disburse loan funds quickly, pay bills, transfer cash via InstaPay, and save money securely.
6. Financial Inclusion and Reporting
- Tala helps users build a formal financial identity by reporting their repayment behavior to credit reference bureaus. This enables users to access services from traditional banks and other formal lenders, promoting financial inclusion.
7. High Repayment Rates
- Tala boasts a high repayment rate of over 90%, which is a testament to the accuracy and effectiveness of its credit scoring model. This also allows users to access larger loans as they exhibit reliable repayment behavior.
Benefits
- Accessibility: Tala’s app is available for free download on the Google Play store, making it accessible to anyone with a smartphone.
- Convenience: The application and approval process is fast, seamless, and can be completed anywhere, even without an internet connection.
- Financial Empowerment: By providing access to credit and other financial services, Tala empowers underserved individuals to manage their finances better, start businesses, and improve their quality of life.
Overall, Tala is a groundbreaking solution that leverages data science and mobile technology to address the financial exclusion faced by millions of people in emerging markets.