Gcash system eases credit access for SMEs, farmers

CEBU, Philippines — Ayala-led mobile wallet, GCash, has reiterated its commitment to providing financial solutions to small business owners, farmers, and fisherfolk across the Philippines, through its financing arm Fuse Lending.

“At GCash, we address financial access challenges by leveraging digital, data modelling, and AI technology to facilitate access to fair credit and pave the way for sustainable growth. More importantly, what that means is that it translates into a totally frictionless experience where eligible merchants can avail of a loan with zero documents, and no waiting time. All they have to do is log in to the app, tap its services, and get access to credit and loans,” said Fuse Lending president and CEO Tony Isidro.

In a country where 99.5 percent of businesses account for the micro, small, and medium enterprise (MSME) sector, providing fair access to sustainable lending and credit to more Filipino MSME owners and farmers is key to helping the country achieve sustainable and inclusive economic growth.

Isidro was one of the speakers during the recently concluded 2nd Philippine Climate Forum hosted by the International Finance Corporation (IFC).

The forum aims to accelerate the promotion of green lending and climate investment opportunities in the country and raise awareness of sustainability initiatives across both the private and public sectors.

In one of the panel discussions titled “Promoting Green and Inclusive Growth in the Micro, Small, and Medium Enterprises (MSMEs) Sector in the Philippines,” Isidro, bannered the financial inclusion story of the country’s number one finance super app.

Isidro was one of the key speakers at the event, along with global and local key leaders from the SME Finance Forum, Sustainable Finance and Banking Network (SFBN), and IFC.

According to the Bangko Sentral ng Pilipinas (BSP) starting capital is a major barrier for MSMEs, with 57 percent of small businesses still relying on informal loans.

Through its extensive Know-Your-Customer (KYC) and lending trust rating systems, GCash can provide quick and accessible loans for aspiring business owners, Isidro explained.

“They can borrow up to P125,000, depending on their GScore, which is deposited straight to their GCash wallet, reducing the need for filing multiple paperwork,” Isidro added.

Aside from MSMEs, GCash has been helping provide better opportunities to local farmers, partnering with Mayani and Farm Konekt to give farmers and fishermen access to non-collateralized loans, and to conduct financial literacy sessions to further educate local farming and fishing communities about climate investment opportunities available to them.