GCash represents the Philippines on the global sustainability stage at Madrid positive impact summit

Innovative financial technology solutions that leverage AI help underserved individuals shift from informal, exploitative lending systems to more secure financial options, opening doors to economic growth and entrepreneurship.

This was one of the main points highlighted at the prestigious Syzygy event in Madrid, Spain. Held at the Espacio Rastro, the annual global forum focused on “Positive Impact Innovation,” uniting leaders to address sustainability, equity, and inclusion through innovative solutions.

During the event, Fuse president and CEO Tony Isidro highlighted how GCash empowers underserved Filipinos and contributes to global discussions on sustainability and innovation.  “Inclusion is empowerment, and at the heart of inclusion is credit. When credit providers are purpose-driven, we can create lasting, positive change where it’s needed most,” Isidro emphasized.

A study by GCash revealed that 57% of Filipinos still rely on informal loans, often from loan sharks, which charge interest rates as high as 20% per week. These predatory practices have left millions trapped in cycles of debt and poverty, underscoring the urgent need for fair and accessible credit solutions.

As the leading finance super app in the Philippines, the presence of GCash and its lending arm Fuse in this year’s Syzygy event was an opportunity to showcase the importance of grassroots solutions in bridging digital financial gaps for unbanked Filipinos, demonstrating how technology can improve lives and foster economic resilience.

Breaking barriers to financial independence

Together with GCash, Fuse has removed barriers for Filipino borrowers through its AI-driven GScore. This feature uses AI to generate predictions for data collection, credit history, and user’s behavioral patterns on the app including loan repayments, which then determines the user’s eligibility to access fair loans. This has also enabled 86% of Fuse borrowers to shift from informal to formal credit without collateral. Isidro highlighted the seamless experience, with real-time disbursement, integrated repayments, and GINA, a multilingual voice bot. Using these advanced technologies, GCash and Fuse are able to scale and reach more customers, empowering them to become financially independent by giving them easy access to formal and fair loans.

Transforming lives with accessible and sustainable lending

Currently, GCash and Fuse has disbursed over $2.67 billion (Php 155 billion) in loans to 5.4 million borrowers, maintaining single-digit non-performing loan rates. Products like Sakto Loans, offering amounts starting at PHP 100 ($2) with 30-day terms, support low-income individuals. Since its 2023 launch, Sakto Loans has helped 1.6 million borrowers with a healthy repayment rate of 90%.

“Sakto Loans aren’t just a quick fix, they’re an entry point to formal credit, giving borrowers the opportunity to build their credit history and graduate to higher-value products,” Isidro explained.

Looking ahead

GCash and Fuse demonstrate how technology can reshape financial systems and uplift underserved communities, with plans to reach more  farmers, fisherfolk, and small businesses. Their approach bridges gaps in financial access, fostering resilience and growth. Isidro emphasized the importance of collaboration with innovators, NGOs, and government agencies to scale their impact.

As they continue to develop new products and enhance accessibility, GCash and Fuse remain committed to delivering meaningful credit solutions to even more Filipinos.

For more information, please visit www.gcash.com