Tala’s borrowers experience empowerment thru microloans

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Mobile Loans has helped Unbanked Filipinos’ Financial Burden

81% of borrowers report quality of life improvements; 86% of women borrowers gained confidence; 99% of borrowers trust Tala

Global digital lending platform Tala revealed on its real world socio-economic impact that Tala customers experienced improved quality of life after having utilized the company’s services.

Among the findings of the “Lender’s 2022 Impact Report” is that out of 250 Filipino Tala borrowers interviewed, 81% of respondents shared that their quality of life improved thanks to Tala’s service. The Report was prepared by 60 Decibels, a global, tech-enabled impact measurement company, between October – November 2022. It details the real world societal impact that that lending service has had in the countries in which it is present.

The report further showed that the top three self-reported outcomes for the 81% of borrowers who reported quality of life improvements were: 55% talked about having improved access to finance, 31% reported being able to better afford household expenses and 17% reported the ability to face emergency expenses.

“We’re happy to see that our services have granted our customers confidence where they didn’t before, gave them the ability to better withstand emergencies, and provided them the avenue to pursue their dreams. Tala has definitely made a big impact in the Philippines,” Missy Santos, Marketing Manager of Tala shared at the briefing.

Apart from improvements in quality of life, Tala respondents also reported improvements in how they manage their finances. As a result of Tala’s microloans, about 45% respondents said they increased their savings, 69% were able to reduce their financial stress, and 89% improved their financial management skills.

Positive impact on women
Sharing the most significant impact Tala has made in the lives of Filipino women, Iona Iñigo-Mayo, Tala’s Senior Director and Global Customer Experience Operations said, “It gives me great pride to share that 70% of female borrowers cite an increase in their influence on household decision-making thanks to financial access. For these women, their financial independence (56%), capability to pay for household bills/expenses (53%), and money for education (15%) improved the most because of Tala. Moreover, the self-confidence of 86% of Tala’s female borrowers increased while another 78% experienced a rise in respect from their household.”

Tala customers’ satisfaction was also rated highly by the interviewees, citing the efficient loan approval process and the reliable and easy-to-use Tala application as one of the key reasons. About 98% of borrowers agree that they understand the terms and conditions of their loan, and 99% of them trust Tala with their personal information.

In the report, an average Philippine Tala user was defined: a 37-year-old who has been a Tala member for about 32 months; with 56% of them having to take out loans every two months. They’ve experienced challenges including paying off their bills, having the confidence to avail of a loan, and acquiring financial independence. When asked if they have experienced a similar service elsewhere, 70% said they did not, and 84% could not find a good alternative to Tala’s digital loans.

“The Philippines is a key market for Tala as it provides opportunities for growth. All the figures and statistics we’ve shown today showcase the love, dedication, and care we have for our Filipino customers which, in turn, is returned by them in full. We strive to continue to be a trustworthy, transparent, and life-changing service to all Filipinos,” said Kunal Kaul, Chief Risk & Strategy Officer, Tala.