Tala, the global financial infrastructure company, announced Wednesday a $100 million partnership deal with Malaysia-based bank CIMB to accelerate its launch in the fast-growing Vietnam market.
Tala said in a statement, the partnership introduces a flexible line of credit product, which eligible customers can access credit limits of up to VND 30 million ($1155) for permitted consumption purposes with tenor for each drawdown up to 61 days, with the flexibility to choose repayment due dates that align with their individual financial plans.
Customers may also proactively repay their loans at any time to ease financial pressure without incurring fees, including early repayment.
The registration and approval process is fully digitized through Tala’s application, significantly shortening processing time, and ensuring quick disbursement.
CIMB contributes its robust infrastructure, regulatory expertise, and strong insights into market knowledge, while Tala brings innovative technology and a deep understanding of underbanked populations.
The collaboration particularly benefits customers by offering a seamless, convenient, and efficient journey towards access to responsible and inclusive financial solutions.
According to the statement, while many Vietnamese adults have access to digital accounts, they are still underserved with little to no access to credit, an essential financial product.
Tala addresses financial access gaps with an end-to-end, artificial intelligence (AI) native solution from credit scoring, decisioning, and disbursement, all within a few minutes through its mobile app.
Headquartered in the United States, Tala has over 13 million customers and disbursed $7 billion across three continents in the last decade.
Vietnam is the latest addition to its Asia region. Tala has been serving the neighboring country, the Philippines, for eight years, disbursing $2 billion to its four million customers.
“We’re proud to partner with CIMB, one of the most respected banks in Vietnam, to provide safe, affordable credit to many people who don’t have access,
“Tala’s state-of-the-art proprietary technology combined with award-winning customer service makes us uniquely qualified to meet the financial needs of underserved Vietnamese,” said Shivani Siroya, Chief Executive Officer and Founder of Tala.
Steven Truong, General Manager of Tala, also said that he has seen first-hand the frustration and struggles of the lack of good credit options for everyday Vietnamese.
“The partnership with CIMB will enable us to reach the underbanked with our app and continue to fulfill Tala’s mission,” he added.
Le Hien Trang – Head of Partnership and Strategic Growth, CIMB Vietnam, said they expect to expand customers’ access to digital financial services, enabling them to proactively and easily achieve their personal financial goals with financial leverage from the collaborative product between Tala and CIMB.