TBC News

In digital lending, speed is rapidly becoming the baseline expectation. A recent survey from the Bangko Sentral ng Pilipinas reveals that 31% of Filipino borrowers prioritize fast processing and rapid loan approvals above all else when selecting a provider.

However, SEC-registered fintech company Skyro is pushing back against the industry impulse to simply gather massive amounts of data to accelerate approvals, demonstrating instead that prioritizing data quality over volume has increased its portfolio profitability by up to 10%.

Rather than piling on data sources, Skyro deploys a targeted framework that blends traditional credit records with alternative data, behavioral analytics, automated fraud controls, and dynamic verification tools. The objective is to make rapid, well-informed credit choices while maintaining rigorous risk management.

The Challenge of Fragmented Data

Evaluating borrowers in emerging markets presents a persistent structural barrier: a significant portion of the population lacks a formal financial footprint. While alternative data—such as telecommunications records, digital transaction logs, and utility histories—can bridge this gap, the information remains highly fragmented across multiple vendors.

“The biggest challenge is data fragmentation. In many emerging markets, information is spread across different providers, and the quality and availability of data can vary significantly,” said Emmanuel Ebuen, Skyro Head of Risk Portfolio Management.

This fragmentation leads to uneven data updates, costly integration fees, and varying levels of reliability across providers. Skyro addresses these hurdles by testing each source for performance and economic efficiency before integrating it into its evaluation engine.

“There are a lot of alternative data providers in the market for telco, credit bureaus, transactions, and more. For each of them, we test to learn which ones are most effective and economically efficient,” Ebuen explained. “Having more alternative sources adds more dimensions to how well we understand our clients. It makes decisions fairer.”

Rather than discarding or replacing traditional credit metrics, Skyro uses alternative data to supplement conventional records, creating a clearer picture of first-time borrowers without adding friction to the application process.

Layered Risk Controls and Fraud Prevention

Delivering rapid credit decisions requires risk assessment and fraud detection to operate simultaneously rather than as sequential hurdles.

“Skyro combines several layers of verification and analytics to make fast credit decisions while keeping risks under control,” explained Serhii Shelest, Skyro Deputy Head of Risk.

Skyro’s security and risk assessment infrastructure combines several key components:

• Electronic Know-Your-Customer (eKYC): Incorporates liveness detection, document verification, face matching, and automated forgery detection.
• Environmental & Behavioral Signals: Analyzes device data, user behavior, and contextual indicators to flag suspicious discrepancies.
• Early Warning System (EWS): Cross-references application details with internal and external data points to detect high-risk patterns.

This integrated defense explicitly targets sophisticated digital financial threats, including identity theft, synthetic identities, mule accounts, and coordinated batch applications.

“Some of the most common fraud cases in digital lending include identity theft, the use of mule accounts, synthetic identities, and multiple coordinated applications,” Shelest noted.

“The goal is not only to speed up approval times, but also to maintain verification quality and fraud prevention standards,” Shelest added. Skyro’s EWS currently identifies approximately one in four fraud attempts at an early stage, blunting potential losses before transactions are executed.

Dynamic Verification for Broader Financial Access

Skyro applies a flexible, risk-based approach to applicant screening. When potential inconsistencies or missing records surface, the system automatically triggers supplementary verification checks or consults alternative data points rather than issuing an immediate rejection.

“If we identify inconsistencies or missing information, we may apply additional verification checks, request supplementary data, or use alternative data points to support the assessment,” Ebuen said. “The idea is to balance risk control with a smooth customer experience.”

As competition across the digital lending landscape intensifies, competitive advantages will depend less on raw data accumulation and more on precision analytical execution.

“At the end of the day, we want all Filipinos to have a fair chance at accessing financial services. Our technologies are constantly being upgraded to ensure the safety and convenience of both our current and future customers,” Ebuen said.