Tala pushes for responsible and transparent AI adoption in lending 

Industry leaders and experts weighed in on how the transformative power of Artificial Intelligence (AI) can shape the nation’s future during the Manila Tech Summit 2024.

During a panel on balancing consumer and creditor protection, General Manager of Tala Philippines, Mr. Moritz Gastl talked about how global fintech uses AI and machine learning to increase economic resilience and financial inclusion among Filipinos.

“We ultimately improve our underwriting using machine learning to give better access to customers—better access to, ideally, cheaper prices for good customers to give them the ability to access larger loans as we learn more about them,” said Gastl.

Tala, the world’s first financial platform for the Global Majority, provides customers with flexible and convenient online credit. Tala’s mobile application where all its transactions take place—from loan application and approval to disbursement and repayment—harnesses next-generation technology like alternative data to assess creditworthiness, enabling customers without a traditional credit history to access loans. 

“It’s all about transparency of the industry: of the lenders towards their consumers and of the regulators with the lenders. It has to be clear how AI is being used to underwrite customers and further the industry. It’s all about putting out all the cards on the table and giving fairness and transparency to the customers so the lenders and the bureaus have a level playing field,” said Gastl when asked about the key to balancing consumer and creditor protection.

Gastl also expounded on the importance of ensuring utmost fairness, transparency and data privacy in AI-driven lending practices, acknowledging the challenges regulators and private companies face in the digital lending landscape. 

“As Tala advances further, we remain committed to using high ethical standards without discrimination. Whether AI is there or not, we must educate our customers. What happens to your data posted on social media? What technology are we using? Industries and regulators must work together to educate our customers,” he added.

With the emergence of new technologies, Tala is committed to help foster a fair and transparent lending industry where customers are of top priority. Aside from abiding by existing laws on data privacy and technology use, it also continues to support regulators and legislators in crafting new AI and data privacy regulations to educate customers and protect them from AI-assisted fraud and scams.

ADVT.

This article is brought to you by Tala.