The previous co-founder of Skype wants to provide millions of people in Southeast Asia with access to credit, even if they don't have the traditional credit metrics.
Geoff Prentice, currently co-founder of Oriente, wants to put credit into the hands of millions of consumers in Southeast Asia despite their lack of credit history. The Hong Kong-based financial services and technology company Oriente has already managed to raise $105 million (S$144.7 million) in its initial funding and does not plan to stop there.
«If it’s not as big as Skype, it is not worth doing,» Geoffrey Prentice, Co-founder of Oriente mentioned in a recent interview with finews.asia. Currently, the firm has 1,400 employees working with 341 stores throughout the Philippines. The firm's Cashalo app, which operates in the Philippines, has a review rating of 3.1 out of 5 on Facebook.
Screening Process
The start-up collects personal data from its users via quick questionnaires and observation of shopping behaviors at major malls, and decides whether a user with no credit history can receive a loan within minutes. As long as the shopper's profile matches the type they target, they can approve the loan.
These are the people who would have otherwise not be able to borrow money from a legal channel as they do not qualify for a loan, often turning towards informal lending channels with incredulous interest rates of 20–30 percent a month.
Managing Growth
Despite Prentice’s aspirations to make Oriente's apps the household name in each country, he aims to grow prudently and safely through investing in digital infrastructure rather than gaining market share through lowering the lending rates.
Oriente is also taking rigorous steps to assess risks such as engaging in both online and offline security methods to minimize identity thefts and souring loans.
The Difference
When asked how Oriente differs from other online lending platforms, he explained that plenty of current online lending systems merely shift the broken offline system online, and does not address the root of the issues.
«The important thing for us is we do not want to be loading people up with unnecessary debt,» said Prentice, whose firm prefers lending to ladies in the Philippines who are buying household items.
The company aims to spread awareness and educate the public, running financial literacy programs on how to save, budget and manage money through their partnerships with NGOs.
