Tala & Metrics Report: Financial stress a silent pandemic, continues to rise in 2022

  • Inflexible due dates stand out as the root cause of financial stress for Mexicans followed by high rates according to a study by Tala and Metrics.
  • Tala offers a solution to customers by launching new Tala Loans, a credit option that allows borrowers to choose a repayment date and terms.

MEXICO CITY – June 1, 2022. Today, Tala, a global technology company on a mission to provide financial access for all, and Metrics, a data intelligence consulting firm, shared the findings of a joint large-scale research project aimed at understanding the effects of financial stress on Mexican consumers. As a part of the project, Tala performed an independent study amongst its customer base, which consists mostly of unbanked working class consumers, while Metrics, used artificial intelligence and social listening to gather a broadscale vision on digital conversations around financial stress throughout the country. Both studies were conducted during the same time period.

Tala found that inflexible due dates from digital lending products was the top cause of financial stress (52%) among borrowers, followed by high interest rates (31%) and managing multiple debts (29%). Other common stressors included the risk of defaulting on payments (14%) and the possibility of losing collateral (Tala does not require collateral).

Tala believes there are ways to reduce these stress triggers and has launched a new credit option that allows customers to choose their own loan amount and their loan term, up to 60 days, that works best for their needs. The new loans enable customers to time their due date around their next payday and other financial obligations, making repayment easier, and lowering fees depending on the chosen duration. Tala offers affordable, transparent and one-time fees on every loan. Customers who make timely payments can earn more favorable terms over time, including doubling and tripling their loan limits within just a few months.

Speaking at the launch event, David Lask, Managing Director of Tala México said, “The consequences of financial stress on the health of Mexicans is serious and needs to be addressed. We at Tala are constantly listening to our customers to provide solutions that meet their needs. Tala Flexible Loans is a first-of-its-kind credit option in Mexico that empowers Mexicans to be financially in control of their futures. Customers have the option of selecting dates that align with their income cycle or salary pay date, giving them more flexibility, empowerment and confidence to beat financial stress.”

Ximena Céspedes, president and founder of Metrics agreed that the pandemic has fundamentally reshaped the conversation around finance, technology, and digital transactions among lower-income consumers, especially women. The accelerated adoption of digital transactions is clear from the conversations tracked and reinforces official data regarding the role of digital finance in driving financial inclusion.

In the closure of the event, Lask highlighted that Tala is on a mission to empower the financially underserved using its proprietary technologies, encouraging responsible borrowing while preventing over-indebtedness. Tala’s commitment to its consumer base, includes financial and business education programs online through a robust library of educational content, which includes articles related to loans, savings, business, and general expenses.
Lask and Cespedes emphasized that products and programs that help relieve financial stress for Mexico’s working class represent a benefit for families and for the country as a whole.

About Tala

Tala is a global technology company building the world’s most accessible financial services. More than 6 million people across Kenya, the Philippines, Mexico, and India, have used Tala products to start and expand small businesses, manage day-to-day needs, and pursue their financial goals with confidence. Tala has raised more than $350 million from visionary investors including Upstart, the Stellar Development Foundation, RPS Ventures, the J. Safra Group, IVP, Revolution Growth, Lowercase Capital, and PayPal Ventures. Tala.co