More and more Filipinos are using digital financial applications and platforms due to the convenience they offer in every transaction. With the increased interest in these, fraudsters have also found ways to target users with online scams and unethical practices. To veer away from these, it’s important to know what qualities a legitimate financial app possesses. Make sure to check for these green flags before choosing a financial partner to trust:

A clean track record

When you come across a new app or platform, it’s always best to do a background check to assess whether it can be trusted or not. Start with basic information you can easily access online such as business registration status, compliance with laws and regulations, and company reputation.

Keep an eye out for controversies and negative reviews but make sure to verify these as some claims can also be fabricated. Some signs of a fake review are the use of overly positive or negative language, suspicious reviewer profiles, and spam-like posting. Always be discerning and only trust reliable sources when doing your research.

Compliant with regulatory bodies

Given that the Securities Exchange Commission (SEC) and the Bangko Sentral ng Pilipinas (BSP) have a dominant role in regulating the fintech industry in the country and ensuring that consumer interest is protected, it is mandatory for a legitimate fintech company to be registered with these regulating bodies—a bare minimum requirement to have.

When a company is registered with the SEC, it means it is allowed to operate legally as a financing company and engage in business. Check the List of Recorded Online Lending Platforms to verify if an app or company is SEC-registered. BSP, on the other hand, regulates banks, quasi-banks, and non-bank financial institutions and ensures that their operations are within the standards and banking laws in the country.

Transparent with terms and conditions

From the get go, your financial partner should be open and truthful with its offerings, payment terms, interest rates, repayment schedules, policies, and other related information. All these should be clearly indicated on its platform or website for easy access of users, and followed accordingly throughout the transaction. Otherwise, customers can be misled and made to pay more than what they expected and even have their personal information compromised.

Has respect-based practices

A financial app that respects its customers’ privacy and dignity is an app that you can trust. Particularly, your financial partner shouldn’t share your personal information to other entities, including “sister” or affiliate apps, and have you be bombarded with all sorts of offers you didn’t sign up for. It also should never resort to any form of harassment when it comes to repayment. Horror stories of companies calling a customer’s contacts, sending threatening text messages, and even visiting their address have become all too common nowadays when it shouldn’t be the case.

So when searching for the right financial partner for your needs, make sure to look for the green flags! Only transact with an app or platform that puts customers’ best interest at the forefront like Tala, the world’s first fintech company for the Global Majority.

Tala provides its customers with flexible, convenient online credit to help them manage their finances and achieve their goals. Regulated by the SEC and BSP, you are assured that all transactions with the Tala app are secure and legitimate.

Customer Ginalyn, who had a previous unfortunate experience with a rogue online lending company, shared how this made her become more vigilant in transacting with apps, making sure to check reviews and research about the company first.

“With Tala, the interest fee is low. It’s very safe and friendly. It doesn’t force you to pay. If your due date is coming up, it will encourage you to get in touch with them in case you still can’t afford to pay,” she said. “Whenever I’m short on budget, Tala is my go-to. I know I can depend on Tala.”

“For our customers to be able to trust us and our services, we maintain fair and ethical standards and practices in every transaction,” said Charisse P. Alvarez, Tala Philippines President and Head of Finance, Strategy & Analytics. “We will continue to uphold this kind of radical trust, where we trust in our customers first, and be the chosen partner of more Filipinos when it comes to their financial needs.”

Start your journey with Tala by visiting tala.ph and downloading the official Tala app.