MILLIONS of Filipinos have no chance to transact business with banks, like getting a loan, Thus, they are left at the mercy of loan sharks, including the notorious “5/6” scheme.
The “5/6” scheme offered mostly by nationals of India to Filipinos — among them sari-sari store owners and market vendors hard-pressed with cash for their capital — is an onerous transaction where the lender puts a 20 percent interest on the loan proceeds.
It’s a dire situation for poor families, millions of them, the so-called unbanked, that once prompted President Rodrigo R. Duterte to call out those who are doing it. In fairness, even fellow Filipinos also do the same “5/6” scheme of lending to their countrymen.
With financial inclusion the objective of many organizations, particularly the digitally-powered companies and startups, hopefully the situation would be remedied.
And remedy is the idea behind Cashalo as it introduced on Tuesday, November 27, Cashacart, which it dubbed the “Philippines’ first-ever O2O (offline to online) digital basket consumer finance solution.”
So, what awaits Filipinos, even those who have no chance to get a loan from traditional lending institutions?
Through Cashacart, consumers have access to:
- Digital credit between Php2,000 up to a maximum of Php19,999.
- A service that is paperless, collateral-free and available via their own mobile device.
- 0 percent interest or as low as 3.99% monthly interest rate (depending on the product).
- Approval in as fast as 10 minutes.
- Available across a retail network of 250 partner stores.
Filipino consumers may avail themselves of Cashacart, for all their specific shopping needs via the Cashalo app and across a growing network of 250 retail partners, among them, Robinsons Appliances, Robinsons Department stores, Handyman, Oppo, Cherry Mobile, and Memoxpress.
Unlike traditional consumer financing solutions that are restrictive, Cashacart gives consumers the freedom and flexibility to purchase multiple products that they need whether it be appliances, electronics, household items, apparel, or school supplies and choose from a variety of payment options.
Officials of Cashalo’s lending platform said the entire process is completed within minutes in a few easy steps: simply visit a Cashalo partner store and look out for a Cashalo representative who will help them complete a digital application in a few minutes.
Cashalo executives Hamilton Angluben (left), general manager, and Gerard Betita, head of sales, at the launch of Cashacart on Tuesday aimed at financial inclusion. (EKU)
The application requires consumers to submit basic personal information and a valid ID. A customer then chooses a loan amount and payment terms of their choice.
Upon approval a customer can shop for their basket of goods up to a value of the digital credit they have been approved for.
Consumers in the Philippines have been clamoring for just this kind of innovative financing solution.
Recently, Ms. Rose Ong, the newly elected president of the Philippine Retailers Association (PRA) stated that the share of online shopping in the country was only about 1-2% of total retail sales, and according to research by RF Group, 80% of online sales are still cash on delivery.
“We know that millions of consumers still appreciate the physical retail experience but want greater flexibility in how they pay,” Hamilton Angluben, general manager of Cashalo, said.
“With Cashacart, we’re able to give hardworking Filipinos unrivaled financial freedom and flexibility, serving them wherever they are, both offline and online,” he added.
Gerard Betita, head of Sales, Cashalo, added:
“We are thrilled to launch the Philippines’ first-ever O2O basket consumer finance solution. Since our pilot two months ago, we’ve received an overwhelming response from customers who are amazed by the convenience, transparency and flexibility Cashacart provides. We’re excited to expand our network of retail partners in the months ahead to serve even more Filipinos.”
It can be recalled that Oriente and JG Summit Holdings, Inc. officially launched Cashalo on October 23,
Cashalo is a “standalone mobile app that delivers access to affordable and secure credit for millions of unbanked consumers and MSMEs (micro, small and medium enterprises) in the Philippines who need access to reliable and trusted financing options.”
Unlocking financial access for all Filipinos is Cashalo’s avowed mission.
In a nutshell, here’s the “new kid” on the digital block’s reasons for being:
- To provide on-demand lending and other personalized financial services to millions of unbanked Filipinos and underbanked consumers and MSMEs across the Philippines.
- Proprietary technology provides robust alternatives to traditional credit scoring.
- Extensive offline retail partner network of 250 stores to drive O2O (online to offline) offering for consumers.
- Strong partnership ecosystem in development to accelerate financial literacy and inclusion in the Philippines in support of Bangko Sentral ng Pilipinas (BSP).
Oriente and JG Summit partnered to establish Cashalo. (EKU)