GCash lending arm Fuse bullish on loan growth

FUSE FINANCING, INC., the lending arm of e-wallet GCash, is optimistic about its loan growth this year as it continues to expand its reach to underserved consumers and small businesses that remain reliant on informal channels for credit.

“We’ve seen quite significant growth over the last years, and we continue to be optimistic about the growth prospects,” Fuse Financing President and Chief Executive Officer Tony Isidro told reporters on the sidelines of an event on Friday.

“The reality is there’s still a lot of our countrymen who rely on informal lending and that applies for both end-customers and micro, small, and medium enterprises (MSMEs). And that’s something we feel strongly about. It’s a space we really want to make an impact on. And so, we feel that there’s still so much opportunity to grow and help more Filipinos moving forward.”

As of end-June 2025, GCash has disbursed P287 billion in loans to 9.5 million borrowers.

Mr. Isidro said they aim to ramp up their lending to support efforts to bring more Filipinos into the formal financial system.

“[The number of] customers and MSMEs that still rely on ‘5-6’ and loan sharks is still so big. That’s where the drive to keep on pushing the business to grow and offer more loans to deserving Filipinos is coming from,” he said.

“We’re looking at growth for end-consumers, to retail customers, but also aiming to source growth also from loans extended to micro and small enterprises.”

He said they want to support MSMEs by providing them with access to financing, noting their significant economic contribution. MSMEs make up over 99% of business establishments in the country and generate over 60% of total employment.

On Friday, GCash and Fuse Financing signed a P1.75-billion ($30 million) credit facility with the Asian Development Bank (ADB) to expand working capital loan products offered to MSMEs through the e-wallet.

The partnership includes an additional $125,000 in technical assistance from ADB to help Fuse Financing develop tailored financial products and deliver financial and digital literacy training for women, especially those with limited formal education.

The transaction marked ADB’s first partnership with a financial technology company in the region.

“I think it is a matter of pride for the Philippines that out of all Asia, this is the first fintech lending facility that ADB has done with anybody. And that gives me pride to say that obviously, that was based on our very thorough due diligence on how Mynt (Globe Fintech Innovations, Inc.) is doing and how Fuse is doing,” ADB Director for Private Sector Financial Institutions Suhail Khan said. — A.M.C. Sy