Financial inclusion in the Philippines will not be achieved by technology alone. Real progress will come when lenders combine digital tools, access to both traditional and alternative credit data, and human understanding to see borrowers more completely.
That was the central theme of the pilot episode of LenderLink Lounge podcast, where fintech consultant Krizelle Lazatin and Kasper Svendsen, CEO and co-founder of Datung.io, discussed what responsible lending looks like in a country where millions of people remain invisible to the financial system.
Their insights pointed to a simple truth: better credit decisions depend on better data—and the industry must create stronger demand for access to it.
The real currency of inclusion is data
The Philippines, like much of Southeast Asia, still faces a credit-visibility gap. Many small business owners and consumers have no formal credit history, limited documentation, and little access to bank services.
For Svendsen, that gap is not just about missing information. It is about recognition.
“Microfinance has been around for centuries,” he said. “But 42 million small business owners in Southeast Asia still can’t access fair credit. That tells you the system is measuring the wrong things.”
At Datung.io, Svendsen’s team builds alternative profiles for microentrepreneurs using more than 50 nontraditional data points, from utility records to behavioral patterns and even social accountability within local groups.
“We use AI to really create a holistic profile on small businesses who don’t have all the traditional documents needed for a bank loan,” he explained. “And we also rely heavily on psychology and sociology, where we put small business owners in groups with similar businesses so they’re accountable and helping each other out.”
For lenders, the lesson is clear: the future of inclusion depends on the ability to access and interpret data that extends beyond the bureau file.
Technology enables, but people decide
Automation and AI have changed how lenders process applications, but both experts cautioned against letting algorithms replace human discernment.
“If a client applies for five loans in one week, the data might not tell you why,” Svendsen said. “Is it desperation, or is it a legitimate need to fund an opportunity? That’s where psychology and context come in.”
Lazatin added that while lenders want to extend credit to new segments, they are still constrained by verification gaps.
“A borrower may have perfect utility payment records,” she said. “But without verified financial documents, many lenders will still hesitate. It’s not that they’re unwilling—it’s that the system doesn’t make it easy to trust the data.”
This tension creates a familiar paradox in credit markets: too little data forces conservative decisions, while too much unverified data creates noise. The right balance requires both technology and human judgment.
Fragmented data keeps the market from growing
When asked what they would fix first in the Philippine lending landscape, both Lazatin and Svendsen pointed to the same issue: fragmentation.
“There are verified data sources,” Lazatin said. “But they don’t always talk to each other. Even regulated ones like the CIC have accessibility and recency hurdles. What we need is a connected, standardized data environment—one where institutions can securely share verified data through interoperable systems.”
Svendsen echoed that point, emphasizing the lack of centralized, reliable credit databases across both formal and informal lending.
“If lenders had seamless access to accurate, up-to-date data, they could make faster and fairer decisions,” he said.
Across Southeast Asia, some progress is already visible. Singapore’s SingPass and Indonesia’s open API frameworks allow consumers to consent to share financial data seamlessly across institutions. The Bangko Sentral ng Pilipinas’ Open Finance Framework aims to achieve the same, but adoption is not as fast.
Creating demand for access to credit data
To accelerate progress, Lazatin said the financial industry must create stronger demand for access to both traditional and alternative data.
“When financial institutions actively push for better access to data, it signals that inclusion is a shared goal,” she said. “Technology can help, but without strong, interoperable data pipelines, lenders will always be working with an incomplete picture.”
Demand drives investment. The more lenders rely on verified and alternative data sources, the stronger the case for infrastructure, policy, and partnerships that make those sources available.
That collaboration between data providers, lenders, and regulators will determine how quickly credit data in the Philippines evolves from a compliance tool into an engine for growth.
The next chapter of credit in the Philippines
The path forward is clear: combine technology’s efficiency, data’s depth, and human insight’s empathy.
Fintechs such as Datung.io are showing that with the right signals, small businesses once deemed “unbankable” can build credible credit profiles. Platforms like LenderLink are helping lenders and data providers connect to make those signals visible.
To unlock the next stage of financial inclusion, the industry must not only innovate. It must insist. On better access. On cleaner data. On smarter collaboration.
Because credit data does more than determine who gets approved. It determines who gets seen.
Watch the full podcats below for the full conversation.
