There is a lot of hype going on about providing access to finance using digital platform. Fintech companies providing loans are either providing loans directly or through peer-to-peer arrangements where loan applications are matched with funders. The companies promised fast service, few requirements and with range of amount from as low as P2,000. to as high as P300, 000.
With a list of fintech companies, I tried applying for personal loans and failed! Summary of the challenges in dealing with fintech companies:
– Cash wagon: after completing all the data requirements and going through the whole process, I received this message: 500, Something went wrong. Try again in four weeks
– Robo cash: the template required the company phone number, but the field was designed for a 12-digit mobile phone number. So when I typed the 7-digit landline, it showed error, and I cannot move on to the next step.
– Asteria: there is a requirement for a bank specified credit score which I do not have
– Loan Ranger: required a Facebook account which I do not have.
– Tala: same with Loan Ranger, a Facebook account is needed and I do not want to open one.
– Quickpera: a long list of requirements more than what traditional banks are requiring
– Cash smart: 2 proof of billing, the problem here is that I live in a place where the bills are in the name of the previous owner of our house. I do not maintain a postpaid mobile phone, so no bills in may name. And they even require two!
– PeraJet: same proof of billing requirements.
Online lending maybe practical for millennial who are familiar with the internet, but it may be a struggle for an ordinary entrepreneur or even a farmer. So talks about fintech as the relevant tool in expanding financial inclusion has still a long way to go.