GCash Lending Arm Fuse Over PHP 155 Billion in Loans Disbursed to 5.4 Million

Fuse Lending Opens Doors to Digital Lending for Unbanked Communities and MSMEs

In the Philippines’ quest for financial inclusion, access to fair lending is a crucial pillar that empowers individuals and businesses. GCash, the country’s leading finance super app and largest cashless ecosystem, through its lending arm Fuse, is driving economic empowerment by providing accessible and affordable credit to millions of Filipinos.

Launch and Expansion of Fuse Lending

In 2016, GCash’s parent company Mynt launched Fuse Lending to better serve underbanked Filipinos. By 2022, Fuse introduced GLoan, a pioneering lending product that offers first-time access to credit without the need for credit history or collateral.

Fuse has since expanded its services beyond GLoan to include:

• GCredit: Revolving credit line
• GGives: Installment loan for partner merchants
• GLoan Sakto: Nano-loans
• Borrow Load

With loans starting as low as PHP 100, GCash has disbursed over PHP 155 billion in loans to more than 5.4 million Filipinos, including those in grassroots sectors such as sari-sari store owners, public market vendors, and farmers.

Empowering Women and MSMEs

Notably, 68% of GLoan borrowers are women, and one out of three borrowers are micro, small, and medium enterprises (MSMEs). GCash has opened the door to digital lending for many Filipinos who previously relied on informal sources, with 86% of GLoan users being first-time formal borrowers.

Transformative Power of Digital Finance

“We saw GLoan as a lifeline for millions of Filipinos to get by in the aftermath of the pandemic, where there was an 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.”

Supporting the National Strategy for Financial Inclusion

The progress enabled by GCash and Fuse aligns with the Bangko Sentral ng Pilipinas’ National Strategy for Financial Inclusion 2022-2028. The BSP aims for a 10% share of MSME and agricultural loans by 2028. Data from the Philippine Guarantee Corporation in 2021 shows that the percentage share for these sectors, which drive the country’s economic growth, is at 1% separately. GLoan’s entry came at a time when the total percentage of their loan portfolios had been declining.

The BSP cited several reasons that hinder Filipinos from accessing credit, including:

• Lack of money to open bank accounts (45%)
• Documentary requirements (26%)
• Proximity to financial institutions (8%)
• Intimidation by traditional bank processes (31%)

Despite their successes, GCash and Fuse are constantly innovating to reach more Filipinos who remain in the “credit vacuum,” aiming for Finance For All.

Expanding Through Business Partnerships

GCash and Fuse have expanded their lending services through partnerships with various organizations such as Lazada (seller loans), and Mayani and Farm Konekt (farmer loans).

• Lazada Partnership: GCash supports online sellers by providing digital loans that accelerate business growth. Fuse has integrated its seller loan product within the Lazada Philippines Seller Center app, extending its reach to MSMEs beyond the GCash platform.
• Mayani and Farm Konekt Partnership: This partnership provides farmers and fisherfolk with non-collateral loans, access to other GCash services, and sessions on financial literacy and digital finance. This aligns with GCash’s vision of financial inclusion, empowering the agricultural sector through technology and access to credit to withstand challenges such as calamities and weather disturbances.

Innovating to Address Various Needs

GCash is also rolling out Borrow Load and Borrow on the Spot, which will be useful for prepaid subscribers needing access to load or data during emergencies while on a budget.

“GCash and Fuse have always built their relationship with their customers around trust," Isidro said. "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.”

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FAQs

1. What is Fuse Lending? Fuse Lending is the lending arm of GCash, launched by Mynt in 2016 to provide accessible and affordable credit to underbanked Filipinos.

2. What products does Fuse Lending offer? Fuse Lending offers various products including GLoan, GCredit, GGives, GLoan Sakto, and Borrow Load.

3. Who can avail of Fuse Lending services? Fuse Lending services are available to all Filipinos, including those in grassroots sectors such as sari-sari store owners, public market vendors, and farmers.

4. How has Fuse Lending impacted women and MSMEs? 68% of GLoan borrowers are women, and one out of three borrowers are micro, small, and medium enterprises (MSMEs).

5. What partnerships has Fuse Lending established? Fuse Lending has partnered with organizations like Lazada, Mayani, and Farm Konekt to expand its lending services to online sellers and farmers.

6. What is the goal of GCash and Fuse in terms of financial inclusion? GCash and Fuse aim to reach more Filipinos who remain in the “credit vacuum,” supporting the national strategy for financial inclusion and empowering various sectors through technology and access to credit.