Tala, a data science and mobile technology company, is enabling its users in East Africa and Southeast Asia to download an Android application that provides them with a new kind of credit score. The app gathers 10,000 data points for each customer, forms a financial identity for them within five seconds, and then uses mobile money or other payment gateways to send capital their way.
“Our mission is to provide customers with choice and control over their financial lives,” Shivani Siroya, the founder and CEO of Tala, told Devex in an interview at the company's Santa Monica, California headquarters, where her team is currently exploring markets for expansion.
Those who lack collateral are excluded from the formal financial system and cannot access loans largely because they cannot demonstrate their creditworthiness. A growing number of companies are responding to the exponential growth of mobile phone usage and the rapid escalation of processing power with new ways to turn digital trails into financial track records. This new approach to consumer risk assessment can reduce the risk of lending and the cost of borrowing, but it remains to be seen which of the organizations tackling the challenge will move the needle from disrupting the industry to transforming it by redefining and democratizing credit scores in developing countries.
About the author
Catherine Cheneycatherinecheney
Catherine Cheney is the Senior Editor for Special Coverage at Devex. She leads the editorial vision of Devex’s news events and editorial coverage of key moments on the global development calendar. Catherine joined Devex as a reporter, focusing on technology and innovation in making progress on the Sustainable Development Goals. Prior to joining Devex, Catherine earned her bachelor’s and master’s degrees from Yale University, and worked as a web producer for POLITICO, a reporter for World Politics Review, and special projects editor at NationSwell. She has reported domestically and internationally for outlets including The Atlantic and the Washington Post. Catherine also works for the Solutions Journalism Network, a non profit organization that supports journalists and news organizations to report on responses to problems.