Trusting Social, Datung expand credit access for PH microbusinesses

Insider Spotlight

• Trusting Social Philippines and Datung are using AI-powered alternative credit scoring to expand financing access for Filipino micro-entrepreneurs without formal borrowing histories
• The integration enables loan approvals within minutes by assessing behavioral and telecommunications data instead of relying solely on traditional financial documents
• The partnership addresses a financing gap as MSMEs account for 99.63 percent of registered Philippine businesses but receive less than 5 percent of total bank lending
  
  
  
  

Limited access to formal credit continues to constrain Filipino micro-entrepreneurs, particularly new business owners who lack financial statements and borrowing histories required by traditional lenders.

To address this gap, Trusting Social Philippines has integrated its AI-powered telecommunications credit scoring technology into the underwriting system of Singapore- and Manila-based microfinance company Datung, allowing eligible borrowers to receive loan decisions within minutes.

The partnership aims to make financing more accessible to entrepreneurs who may be financially reliable but remain excluded from conventional lending because they lack documented credit records.

The integration covers unsecured personal loans and microfinance, using alternative behavioral data to assess applicants instead of relying exclusively on traditional financial documents.

For business financing

Demand for business financing is growing alongside entrepreneurship in the Philippines.

Department of Trade and Industry data showed nearly 850,000 business name registrations in the first eight months of 2026, an eight percent increase from a year earlier. Of these, 726,386 were new registrations.

Meanwhile, micro, small and medium enterprises (MSMEs) accounted for 99.63 percent of the country's 1.24 million registered businesses in 2024 and generated approximately two-thirds of employment.

Despite their economic contribution, MSME loans represented less than five percent of the banking system's total loan portfolio, below the 10 percent benchmark under the Magna Carta for MSMEs.

Generate credit scores within seconds

Trusting Social's technology analyzes behavioral indicators, including payment consistency and activity patterns, to generate credit scores within seconds.

Datung incorporates these scores into its AI-driven underwriting system alongside e-wallet cash flows, field officer assessments and repayment information.

Trusting Social has operated in the Philippines since 2019 and has scored more than 110 million Filipinos.

Trusting Social Philippines CEO Johnny Escaler said the partnership could help businesses overcome barriers created by limited financial documentation.

"Without a formal bank history, new businesses are usually locked out from day one," Escaler said in a press statement.

The companies expect the system to help borrowers establish formal repayment histories through their initial loans, potentially improving their eligibility for financing from other institutions. —Vanessa Hidalgo | Ed: Corrie S. Narisma