Fintech & Ecommerce

Tala Kenya Digital Lender Plans to Diversify Product Portfolio With a Savings Offering

The new saving product targets Tala Kenya’s existing pool of 3.5 million customers, helping the company’s transition from a digital lender to a full-scale financial provider.

Tala Kenya Digital Lender Plans to Diversify Product Portfolio With a Savings Offering

Tala Kenya, a mobile-first financial platform, is moving from loans to savings to diversify its business and bring more utility to its 3.5 million customers.

Tala Kenya currently offers a consumer credit platform that instantly underwrites and disburses loans between KSh 2,000 – KSh 50,000 to customers regardless of their credit history in traditional banks. First-time lines of credit start from KSh 1000 – 2000. With timely payments, customers can build a strong credit history with the fintech and increase available loan amounts up to KSh 50,000.

With over ten years of operations, the company is now ready to move beyond lending and bring its customers the benefits of financial health tools.

According to the company’s general manager Annstella Mumbi, the pilot version of the new savings product will launch later this year, with a full-fledged rollout planned for the beginning of 2025. Later on, the firm aims to develop the app into a multi-purpose platform with payments and investment functions.

Using advanced data science, blockchain-powered infrastructure, AI and machine learning technology, Tala targets traditionally overlooked populations. The firm has already disbursed over $3.4 billion to more than 8 million customers across Kenya, the Philippines, Mexico, and India.

Tala first launched its mobile application to offer credit and collateral-free loans to consumers in Kenya in 2014 but has since expanded to other locations. In 2021, the fintech secured a $145M funding round to expand the range of offered services – the goal it currently plans to realise.

Ms Mumbi also said the company was pondering the acquisition of a microfinance institution (MFI) in Kenya in future. At the same time, it’s not an urgent priority for the firm due to the absence of proper regulations for neobanks in the market. Thus, Tala and other digital lenders are going to propose changes to current MFI regulations to broaden its scope with neobank institutions.

Nina Bobro

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Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.