In many Western countries, access to credit is taken for granted. Banks rely on long credit histories, steady wages, and government datasets to determine who is eligible for loans.
But for billions of people around the world, such systems either don’t exist or aren’t working. Builders involved in Solana’s development say crypto-based lending models are forcing them to rethink how credit risk is actually measured.
In a recent interview with TheStreet Roundtable at Solana Breakpoint, Tala Chief Product Officer Nicolas Cabrera explained that many of the customers his company serves are not high-risk by choice, but by circumstance.
Blind spots for banks
“Many of our customers are underserved or unbanked,” he explained. “These are small business owners who are running actual businesses, but they don’t have the formal income statements or credit history that banks require.”
Rather than forcing these borrowers into a traditional credit scoring system, Cabrera said his team built a new underwriting model from the ground up.
“The traditional way banks and financial institutions try to create scores and risk levels for their audiences doesn’t work,” he said. “These systems rely on centralized data that doesn’t exist in large parts of the world.”
Instead, Tala uses its own data. Cabrera described a system that collects information directly from borrowers and uses machine learning to dynamically assess risk.
Access credit without traditional documentation
This includes behavioral data, device-level signals, and real-time insights into how your business operates.
“We’ve built some very smart models to understand their level of risk and their loan repayment trends,” he said.
One example involves image-based input. Borrowers can upload photos of their store inventory and operations and analyze signals about the scale of activity and revenue potential.
“You can actually get some very interesting signals from that photo,” Cabrera said. “You can see things like inventory levels and foot traffic metrics that help you understand whether your business is active and profitable.”
Risk management is a deliberate step-by-step process. Cabrera said loans typically start with small amounts for a short period of time.
“We start with smaller loans and shorter terms,” he said. “As customers successfully repay, our confidence increases and our model adjusts to suit them.”
This feedback loop causes both credit limits and pricing to evolve over time.
More news:
- Robinhood CEO warns Congressional delays are hurting Americans
- Riot Platforms stock soars after $1 billion AI deal
- Veteran Analyst Warns of Biggest Financial Surveillance Since Patriot Act
This adaptive approach changes the relationship between lenders and borrowers. Rather than issuing one-time loans, the platform is designed to grow with your company as the quality of your data improves. Over time, uncertainty decreases and credit becomes easier to price.
Cabrera said the company, which has operated off-chain for more than a decade, is now bringing some of its lending and liquidity infrastructure to Solana.
“We’ve been doing this off-chain for over 10 years,” he said. “Now we are moving some of that infrastructure onto chain, allowing liquidity and settlement to happen more efficiently.”
The broader meaning extends beyond the code. By redefining how creditworthiness is measured, Solana-based lending models challenge the assumptions built into global finance.
For small businesses long excluded from traditional banking, access to capital may finally reflect real economic activity rather than lack of paperwork.
