Instaloan by Globe
Majority of Filipinos have no formal access to the financial system. Three out of four Filipinos have no bank accounts, 40% of the population have no access to physical banks, and 90% have no credit history. These factors constrain the common Filipino’s ability to take a loan to address small immediate needs or start a small enterprise. Despite these, however, Filipinos remain very connected. With penetration rates of 117% for mobile devices and 50% for the internet, an opportunity to reach out to financially excluded Filipinos through these channels exist.
Instaloan bridges the gap by offering non-traditional scoring models to determine credit worthiness, with approval of decisions being done through automated processes that take less than 30 minutes. With Instaloan, no documents are needed; just an email address and a Globe number. The application and approval process is simple and fast, and better loan terms are made available to repeat good borrowers.
In building its scoring model, the Instaloan team used three major data sets that all have significant penetration rates—telco data, social media data (particularly Facebook), and email. They combined this with repayment data gathered from an initial release of loans to a significant sample size of applicants. Big data and machine learning techniques were subsequently used to fine-tune the scoring model.
Instaloan has already been commercially rolled out within Fuse, a subsidiary of Globe Telecom. The project is continuing to evolve given recurring changes within the company and in the available data.