ADB and GCash Fuse partner to unlock MSMEs, women and fight poverty in PHL
ADB is providing GCash’s lending arm Fuse Financing with a P1.75-B credit facility, accompanied by financing from Mastercard to help Fuse access critical components.
Small, micro, and medium enterprises (MSMEs) and women entrepreneurs across the Philippines are set to get better access to finance after the Asian Development Bank (ADB) approved a P1.75-billion ($30 million) loan facility to Fuse Financing, Inc., the lending arm of GCash, the country’s leading financial app and the largest cashless ecosystem.
This is the first collaboration of its kind in the Association of Southeast Asian Nations (ASEAN) region was officially launched on Feb. 6 at the SMX Convention Center in Taguig City with the theme “Driving Inclusive Finance for Filipino MSMEs” and was witnessed by more than 250 MSMEs, including them. sari-sari shop and the carinderia owners and businesswomen. This landmark partnership enables Fuse to expand its lending portfolio and scale credit access to the country’s most important economic drivers.
MSMEs are the backbone of the Philippine economy, accounting for about 40% of gross domestic product and 63% of all employment. According to the Department of Trade and Industry (DTI)there are 1.24 million registered business establishments as of 2024, more than 99% of which are micro, small and medium enterprises.
However, access to finance remains a major barrier. In accordance with ADB research, access to credit and capital levels as the second key challenge for MSMEs, after access to markets1. With such a financial challenge, it takes less than 12 months for a small business to shut down2.
“This fintech partnership is the first of its kind for ADB in the ASEAN region and marks an important step in promoting financial inclusion in the Philippines,” said Isabel Chatterton, Director-General, Private Sector Operations Department of the Asian Development Bank. “By combining Fuse’s digital access with ADB’s development financing, we are creating an inclusive digital finance system that increases access to finance for women-led and rural businesses across the country.”
“We value our partnership with ADB as it strengthens our ability to expand access to credit for MSMEs and women entrepreneurs, who are underserved by the market. By combining our shared expertise and digital access, we are improving financial inclusion and helping more Filipinos grow their businesses,” said Mynt President and CEO Martha Sazon.
ADB will also provide technical assistance of up to $125,000 to help Fuse Financing develop personalized financial products and deliver financial and digital literacy training to women, especially those with limited formal education. This is in line with ADB and GCash’s broader push for digital finance and inclusion across Asia and the Pacific.
Complementing ADB funding, the Mastercard Impact Fund, with the support of the Mastercard Center for Inclusive Growth and extended core funding to support Fuse in successfully reaching and serving key MSME segments.
President of Fuse Financing, Inc. and CEO Tony Isidro emphasized the importance of this partnership especially in supporting Fuse’s mission of bringing fair credit and expanding credit access to all underserved Filipinos.
“Through our partnership with ADB, with additional support from the Mastercard Impact Fund, we are strengthening our mission to make credit accessible to every Filipino who needs it most,” said Isidro. “This investment enables us to accelerate our support for women entrepreneurs and small businesses in underserved areas, sectors that have the greatest potential to boost the country’s long-term growth,” he added.
“This partnership combines capital, digital infrastructure and inclusive design to unlock new ways of financial security. By working with Fuse Financing and the Asian Development Bank to extend credit to uncut entrepreneurs, we are ensuring that the growth of the digital economy is fair and sustainable,” said Subhashini Chandran, senior vice president, Asia Pacific, Europe, Middle East and Inclusive Mastercard Center for Africa.
In commemoration of this partnership, 10 MSMEs nominated by the Department of Trade and Industry (DTI) have been awarded financial support to help advance their business activities. DTI Secretary Ma. Cristina Roque also graced the event and presented an important message to all the MSMEs present highlighting that synergies like this open up growth and inclusion.
“In addition to the scale of funding, what makes this relationship meaningful is its purpose: to ensure that money reaches entrepreneurs who are ready to grow but have been neglected by traditional programs for a long time. By combining public sector priorities with private sector innovation, this partnership helps pave the way towards legal, fair, and sustainable access to finance for MSMEs,” Secretary Roque said in his speech.
FinLit Day for MSMEs
Alongside this partnership launch, Fuse has collected more than 250 sari-sari shop owners and women entrepreneurs will experience financial workshops designed to help them manage their finances better, borrow responsibly, and build strong businesses.
Attendees were equipped with information on accessing digital credit, improving their eligibility for loans, and practicing proper borrowing. In addition, MSMEs are taught how to integrate digital platforms into their operations to improve efficiency.
MSMEs are important to national progress but remain neglected by traditional financial institutions. According to the ADB researchAccess to credit remains a critical challenge for MSMEs3. GCash’s GSCore trust scoring system as part of the creditworthiness assessment, Fuse removes common barriers to borrowing, with no collateral or documentary requirements needed to obtain a loan, allowing greater access to credit for everyday Filipinos.
The ADB-Fuse partnership aims to unlock the growth potential of MSMEs and contribute to the expansion of an inclusive economy. Unlike traditional financing, capital is designed for impact, carrying strong social mandates that ensure measurable inclusion. This serves as an example of how fintech and development institutions can be aligned with purpose, transforming access to finance by ensuring that opportunity reaches those who can create lasting social and economic change.
For more information, please visit www.gcash.com.
1 Asian Development Bank. Factors affecting the development of micro, small and medium enterprises in developing Asia.
2 Philippine Institute for Development Studies. Evaluation of a Sustainable Livelihoods Seed Fund for Small Business Development.
3 Asian Development Bank. Factors affecting the development of micro, small and medium enterprises in developing Asia.
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