The private and public sectors must come together to improve Filipinos’ access to financial services, according to a GCash official, highlighting the need for coordinated actions to close the credit gap.
Tony Isidro, president and CEO of GCash lending arm Fuse Financing Inc., said in a panel discussion at the Money 20/20 Philippines Summit that no one company can resolve the pain points of millions of Filipinos when it comes to securing formal loans.
“It really takes a village, and a lot of partnerships,” he stressed, noting that GCash has been doing its part in reaching out to many collaborators with the same goal of furthering financial inclusion.
Just recently, Fuse launched a partnership with the Asian Development Bank (ADB) for a PHP1.75-billion credit facility aimed at scaling credit access to micro, small, and medium enterprises (MSMEs) and women entrepreneurs, especially those in high-poverty areas.
This fintech partnership is the first of its kind for ADB in the ASEAN region, combining Fuse’s digital reach with ADB’s development expertise and financial strength.
In addition, the lending arm of GCash has improved its customer servicing by teaming up with artificial intelligence (AI) solutions provider Wiz.AI, automating key processes within its collections operations, particularly quality assurance to strengthen the audit process and overall service quality. This integration will help ensure that human agents remain respectful and uphold the company’s commitment to fair and responsible collection practices.
On the government side, GCash has set up a partnership with the Securities and Exchange Commission (SEC) to strengthen protection against the proliferation of online fraud and scams amid the growing digital economy. This complements its collaboration with the Department of Trade and Industry (DTI), which supports MSMEs in scaling their operations through digital platforms and building long-term resilience.
These efforts are in line with the company’s goal of making credit more accessible to the small entrepreneurs who usually are shut out by traditional lenders due to a lack of credit history and other documentary requirements.
In a panel discussion titled “Open Banking and Embedded Finance Empowering SMEs,” industry leaders talk about the need to improve access capital to micro, small and medium enterprises via innovative financial solutions.
Some MSMEs, Isidro noted, unfortunately resort to borrowing from loan sharks who impose exorbitant interest rates. As such, the MSMEs were left with an even bigger financial burden that burns deep in their pockets.
“How do we move them to a more regulated, more formal sector?” Isidro addressed the audience. “The answer is it has to be very convenient for them to do so.”
At GCash, the MSME loan application process is simplified via the app and no collateral is required, allowing first-time borrowers to secure their own financing.
Beyond access, Isidro underscored the importance of embedding security in digital loans to make borrowers feel confident and assured when making transactions.
“A lot of them hesitate to go digital because of that fear of being scammed, which is real. So the challenge is really to assure them, by our own actions, that it’s safe,” Isidro stressed.
As of the latest report, Fuse has disbursed a total of PHP362 billion to 10.5 million unique borrowers. One in three borrowers is a small business owner, three in five are women, and four in five come from the mass market.