ADB, GCash lending arm partner to fund MSMEs

THE Asian Development Bank (ADB) has extended a P1.75-billion loan facility to the lending arm of GCash, Fuse Financing Inc., to provide wider credit access to micro, small and medium enterprises (MSMEs), particularly women-led businesses and those operating in high-poverty areas.The partnership, sealed on Friday, was said to be the base of ADB’s first fintech-focused financing deal of its kind in the Asean region.The ADB financing will allow Fuse Financing to expand its lending portfolio and scale up digital credit access for underserved segments.The loan facility will be complemented by catalytic funding from the Mastercard Impact Fund, supported by the Mastercard Center for Inclusive Growth, to help ensure that financing reaches priority MSMEs and women entrepreneurs more effectively.MSMEs accounted for about 40 percent of gross domestic product and roughly 63 percent of total employment. Data from the Department of Trade and Industry show that out of 1.24 million registered business establishments in 2024, more than 99 percent were classified as micro, small or medium enterprises.Despite their economic importance, the ADB said that access to credit remained one of the biggest challenges faced by small businesses, second only to access to markets.ADB Director General Isabel Chatterton said the partnership would blend development financing with digital innovation to build a more inclusive financial ecosystem.“By combining Fuse’s digital reach with ADB’s development financing, we are building an inclusive digital financial ecosystem that expands access to finance for women-led and rural enterprises across the country,” she said.Beyond the loan facility, ADB will also provide up to $125,000 in technical assistance to support the development of tailored financial products, and to deliver financial and digital literacy training for women, particularly those with limited formal education.This aims to help borrowers better manage their finances, use digital tools and borrow responsibly, reinforcing the sustainability of the lending program.Fuse Financing President and CEO Tony Isidro said the funding would accelerate the company’s mission to deliver fair and accessible loans to Filipinos who need them most.“This investment enables us to accelerate our support for women entrepreneurs and small businesses in underserved areas, sectors with immense potential to drive the country’s long-term growth,” he added.Mastercard Center Senior Vice President Subhashini Chandran, meanwhile, said extending credit to underserved entrepreneurs would help ensure that the benefits of digitalization were more widely shared.
2026-02-06 16:18:00