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MANILA – The Gokongwei group's financial technology venture Cashalo was using data science to help unbanked Filipinos get access to credit, it's general manager said Monday.

Cashalo uses technology to create credit scores for borrowers, which then give them access to loans. This eliminates the need to borrow from informal lenders that charge "exorbitant" amount, its general manager Hamilton Angluben told ANC.

Data such as social media accounts and contact lists, among others, could help the unbanked get access to as much as P10,000 in loans, Angluben said.

“Cashalo leverages on data science and technology and the smartphone, so with the borrowers permission and consent we were able to pull different kinds of data,” Angluben said.

The Gokongweis and Hong Kong-based Oriente invested an initial P10 billion over 3 years for Cashalo in June.

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Angluben said the app was downloaded 500,000 times.

Aside from cash loans, the fintech company is testing its “consumer purchase” loan scheme which can be used to purchase appliances in retail stores, Angluben said.

The model could succeed in the country because of the the Bangko Sentral's support to technology and financial inclusion, Angluben said.

Cashalo has a huge potential to grow since some 40 million people have no access to formal credit, co-founder Lance Gokongwei earlier said.

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-- with a report by Michelle Ong