After more than a decade in business, global fintech company Tala has yet to turn a profit. But instead of pulling back, it is making an even bigger bet on its future.
The Santa Monica–based lender is doubling down on global expansion, revamping its technology, and introducing a new underwriting approach that it believes will sharpen risk assessments and improve its bottom line.
Why the Philippines matters
Shivani Siroya, Tala’s founder and CEO
“Our mission requires us to stay growth-focused,” said Shivani Siroya, Tala’s founder and CEO. “In the Philippines, we see a market where access, trust, and digital readiness come together to create real impact. That’s why we’re doubling down here.”
Since entering the Philippine market in 2016, Santa Monica–based lender has become a crucial lifeline for millions of Filipinos excluded from formal banking. Traditional lenders often demand collateral, pay slips, or proof of residency — requirements that many low-income families cannot meet.
As a result, borrowers are frequently left with no choice but to turn to informal lenders or loan sharks charging interest rates of up to 20% on short-term credit, trapping households in a cycle of debt.
Tala offers a digital-first alternative: small, short-term loans that require only a government ID, an Android phone, and a selfie. Customers can set their own repayment dates, pay only for the days they use, and receive approval decisions within minutes.
The results highlight its impact. As of June 2025, the company has served more than 3.6 million Filipinos, disbursing over 24 million loans worth ₱333 trillion. Globally, it surpassed 10 million customers in 2024 and has provided nearly US$6 billion (₱333 trillion) in credit across multiple markets.
Tala: Rebuilding after a crisis
Tala’s resilience was tested during the COVID-19 pandemic, when the Philippines endured one of the world’s longest lockdowns.
As incomes collapsed and defaults surged, the company slashed its lending from US$80 million to just US$3 million per month worldwide and reduced its Philippine customer service team.
Those tough measures allowed the company to weather the storm. By 2021, lending volumes had returned to pre-pandemic levels, and the Philippines once again became one of its strongest markets.
With a young, digitally savvy population of 115 million, smartphone penetration of over 84%, and regulators actively engaging with fintech players, the country offers fertile ground for Tala’s continued growth.
Radical trust and local growth
In the Philippines, Tala emphasizes what it calls “radical trust.”
By prioritizing accessibility and transparency, it has built a loyal customer base with a 95% repeat rate and over 90% repayment rate worldwide.
Earlier this year, the company launched the Tala Wallet, a digital tool that enables Filipinos to manage loan proceeds, transfer money, pay bills, and store funds securely. Within four months, the wallet attracted more than one million users, underscoring strong demand for digital-first financial tools.
Tala has also invested in financial literacy through “TALAkayan” workshops and partnerships with advocates like veteran journalist Salve Ibañez (formerly Salve Duplito), helping equip Filipinos with money management skills that support long-term stability.
Challenges and the road ahead
Looking ahead, Tala plans to expand its Philippine customer base from 3.6 million today to 10 million within the next three years, with a focus on underserved communities in non-urban areas.
Future innovations include installment options, longer loan tenors, and rewards programs tailored to Filipino borrowers.
Despite criticisms of its high interest rates — up to 15% per month, the legal maximum — Tala stresses that its terms are transparent and structured to prevent the revolving debt traps common in informal lending. Borrowers pay only for the days they use, ensuring clarity and predictability.
Globally, Tala is targeting break-even by early 2026, with growth in the Philippines expected to play a central role. For sari-sari store owners, small entrepreneurs, and households across the archipelago, Tala continues to serve as a digital bridge from financial exclusion to opportunity.
Six years in, Tala’s Philippine journey demonstrates that while profitability remains a challenge, its bet on technology, inclusion, and trust is reshaping how millions access credit — and why the country remains at the heart of its global ambitions.
