Tala has become a large trend lately. the main reason is that it uses an unconventional way of lending people money. Often when we are going to the bank to lend money. They are requesting things like stable income, good payment history etc.
But there is a huge flaw in this approach. The main reason being that most emerging markets or people trying to start something, do not have this kind of foundation to stand on. They are trying to make something happen.
And the market for this kind of money is huge. You could call it a mini angle investing market. This is not only a third world problem. Even in bigger markets the banks are restrictive to lending money without security.
It looks at the person behind? It looks at multiple signals on your mobile phone like usage pattern, charge cycles, apps you have installed etc etc. Obviously there is patterns in behaviour that could tell if the person is going to be a good lender. There is microsignal that tell so much about the person that you could start to make informed decisions about this person. How will he build the company. Will it succeed? And as an effect of that, will we get our money bac?
Microsignals is going to be huge. It´s not only in lending we will see this shift. Every form of industri is going to see an rapid transformation. From e-commerce to dating. Computers will learn how to harness the power of the individual behind the user!