Despite major strides in digital technology, close to half of Filipino adults remain unbanked, and a significant majority of loans—around 76 percent—still go to large corporations. This leaves small business owners, informal workers, and underserved rural communities with limited access to credit. While technological infrastructure is no longer the main hurdle, trust, usability, and access to relevant borrower data continue to hinder financial inclusion.
Artificial intelligence (AI) is now helping to close that gap. By tapping into alternative data—such as utility bills, e-commerce patterns, and even social media behavior—AI allows for faster and more inclusive credit evaluations. The Bangko Sentral ng Pilipinas (BSP) has highlighted alternative data as a critical tool in expanding financial access, a view echoed by the Alliance for Financial Inclusion (AFI). Fintech platforms like JuanHand are turning this vision into action.
How AI powers inclusive lending
JuanHand, the Philippine affiliate of NYSE-listed FinVolution Group, is at the forefront of AI-driven lending in the country. It uses a proprietary AI engine, honed in China’s fast-paced fintech sector, to assess creditworthiness beyond traditional metrics. With only one valid ID, borrowers can receive loan approval in as little as five minutes. Nearly every aspect of the lending process is powered by AI—from credit scoring and fraud detection to customer onboarding—achieving a 99 percent fraud detection rate.
The system also analyzes unstructured data, such as chat logs and in-app behavior, using deep learning to refine credit assessments. This allows JuanHand to serve individuals who are often overlooked by traditional financial institutions.
JuanHand’s broader mission is to help borrowers transition from micro-loans to formal banking. By tracking repayment patterns and responsible usage, the platform gradually increases loan limits, enabling users to access larger credit lines and better terms. The long-term goal is to help these users build a solid financial track record that can qualify them for mainstream banking services.
To accelerate its mission, JuanHand has formed strategic alliances with both digital and traditional banks, including Maya Bank, Netbank, and Security Bank. These partnerships enable shared funding resources and API-based onboarding, allowing banks to reach customer segments they traditionally couldn’t serve.
Balancing innovation with responsibility
JuanHand is equally committed to responsible AI. It has integrated explainability tools and complies with global data privacy and fairness standards, ensuring that automated decisions remain transparent and equitable.
So far, JuanHand has disbursed over PHP 55 billion in nano-loans and helped more than 2.5 million Filipinos—many of them first-time borrowers—enter the formal financial system.
The company is also broadening its services to cater to semi-prime and prime borrowers—individuals with stronger credit histories who still encounter roadblocks in traditional banking. This expansion demonstrates how AI-driven credit evaluation can flexibly address diverse borrower profiles while maintaining financial sustainability.
As AI continues to evolve, JuanHand aims to remain a key player in reshaping financial inclusion in the Philippines—providing millions with not just access to loans, but a pathway toward long-term financial empowerment.