GCash lends PHP155B to 5.4M Filipinos, boosting financial inclusion

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GCash, the Philippines’ leading finance super app, through its lending arm Fuse, has disbursed over PHP 155 billion in loans to more than 5.4 million Filipinos, playing a crucial role in advancing financial inclusion across the country.

Since its establishment in 2016 by GCash’s parent company Mynt, Fuse Lending has been at the forefront of offering financial services to underbanked Filipinos.

The launch of GLoan in 2022 marked a significant development, offering first-time borrowers access to credit without requiring a credit history or collateral. The initiative has opened doors for many Filipinos who previously relied on informal lending sources.

Among the 5.4 million beneficiaries, a significant portion comes from the grassroots sector, including sari-sari store owners, public market vendors, and farmers.

Notably, 68% of GLoan borrowers are women, and one in three are micro, small, and medium enterprises (MSMEs).

Additionally, 86% of GLoan users are first-time formal borrowers, highlighting the platform’s success in reaching those previously excluded from formal financial systems.

“We saw GLoan as a lifeline for millions of Filipinos to get by in the aftermath of the pandemic, where there was the increased need for easier access to credit,” said Fuse Lending President and CEO Tony Isidro.

“We pulled many individuals and businesses from the dark, and fast forward to today, the enterprises we’ve helped are thriving, while the individuals have been able to bounce back. That is the transformative power of digital finance—to harness technology for good.”

The achievement aligns with the Bangko Sentral ng Pilipinas’ National Strategy for Financial Inclusion 2022-2028, which aims to increase the percentage share of MSME and agricultural loans to 10% by 2028.

Currently, these sectors, vital to the country’s economic growth, represent just 1% of total loans each.

GLoan’s introduction has been timely, as the overall percentage of these loans has been declining.

Despite these successes, GCash and Fuse are continuously innovating to reach more Filipinos still trapped in what the company calls a “credit vacuum.”

New initiatives and partnerships are crucial to achieving the goal of Finance For All.

Recent partnerships with organizations like Lazada and Mayani are expanding GCash’s reach.

The collaboration with Lazada provides online sellers with digital loans that can accelerate business growth, while the partnership with Mayani and Farm Konekt offers farmers and fisherfolk non-collateral loans, access to GCash services, and financial literacy sessions.

In addition to these, GCash is rolling out Borrow Load and Borrow on the Spot, services aimed at providing prepaid subscribers with emergency access to load or data during critical moments.

“GCash and Fuse have always built their relationship with their customers around trust,” Isidro added. “That also means being able to tell Filipinos that we trust them with these loans, which they might need for varying circumstances. It has been our vision since Day One, and we’re glad that our users have also placed their trust in us.”

As GCash continues to innovate and expand its services, it remains a key player in the nation’s drive toward greater financial inclusion, bringing millions of Filipinos into the formal financial fold and helping them achieve economic stability.