Historic fintech deal targets MSME credit expansion

Fuse Financing, the credit arm of GCash operator Mynt, formalized a partnership with the Asian Development Bank and the Mastercard Impact Fund on Friday, Feb. 6, 2026, to expand credit access for micro, small, and medium enterprises.

Department of Trade and Industry Secretary Cristina A. Roque served as the official witness to the ceremony titled “Driving Inclusive Finance for Filipino MSMEs.”

The event established a PHP 1.75 billion credit facility that Fuse secured from ADB.

The press release described the PHP 1.75 billion facility as equivalent to USD 30 million.

While the initiative is private-led, Roque said it supports the “Bagong Pilipinas” vision and stressed that turning ambition into enterprise requires practical tools.

“Financing is the lifeblood of MSMEs,” she stated.

“Without it, they cannot move as fast as they envision.”

The release said the PHP 1.75 billion credit line is the first of its kind for a fintech company in the ASEAN region, framing it as a vote of confidence in Filipino digital innovation.

The partnership will use GCash’s GScore, which it described as an AI-powered system that evaluates creditworthiness based on digital behavior.

The release said the approach allows entrepreneurs to avoid traditional hurdles such as collateral and extensive paperwork, a common barrier for smaller firms seeking formal loans.

Beyond lending capital, the partnership includes development support intended to strengthen how credit is delivered and used.

ADB will provide USD 125,000 in technical assistance, described as around PHP 7.3 million, to help Fuse develop tailored products and deliver financial and digital literacy training for women, especially those with limited formal education.

Mastercard Impact Fund will provide USD 150,000 in catalytic funding, described as around PHP 8.7 million, to support Fuse’s reach and priority MSME segments.

Roque said the DTI is committed to “opening doors” for entrepreneurs who have long faced “closed doors” at traditional banks.

She said she wants digital credit tools to reach the palengke, or public markets, where vendors often enter high-interest informal loan cycles to buy daily inventory.

“We must not underestimate small businesses because many of our giants started at home,” Roque remarked.

“If we level up our MSMEs, we level up the entire Philippine economy.”

Roque also urged entrepreneurs to use e-commerce platforms to reach millions of consumers across the archipelago.

She said MSMEs and the creative industries will be centerpieces of the country’s upcoming ASEAN 2026 hosting.

Private sector leaders at the event said the partnership is aimed at translating large-scale funding into day-to-day financing that feels accessible to small business owners.

Tony Isidro, chief executive officer of Fuse Financing, said the platform is helping open doors across the country by delivering a faster, more transparent loan experience.

Subhashini Chandran, senior vice president at Mastercard, said access to credit is about “dignity and giving businesses a fair chance to grow,”

Christine Engstrom of ADB said MSMEs make up 99% of businesses but receive only 3.9% of total bank loans.

The release said bridging that gap would help bring millions of Filipinos into the formal financial sector.

The event ended with capitalization support awarded to 10 MSMEs nominated by the DTI for resilience and growth potential.

The awardees were Shekierl’s RTW Shop, Three-Cord Braided Bakery, Cattwrites Bags and Accessories Shop, Merly’s Craftcha Recycled Products, Dreamerscorner PH Events Management Services, Echel’s Home Made Peanut Butter, M.M.S-PSGA Online Shop, CAKE’LAB Cakes and Pastries Shop, Vitoy’s Panciteria, and VSC General Merchandise.

The release said the alliance of innovation and capital is intended to ensure that Filipinos who start businesses, including from home kitchens or local markets, have a fair shot at making their dreams a reality.