Daily Tribune‘There are many who have expressed interest in partnering with us. We have a dedicated department for big partnerships but it also focuses on tapping retail shops and sari-sari stores. This is the best way to reach the market.’
A subsidiary of Globe Telecom, Fuse Lending Inc., is eyeing link-ups with community-based establishments and small lenders for loans to MSMEs. | photograph courtesy of globe/fb
Fuse Lending Inc., a subsidiary of Globe Telecom Inc., is exploring partnerships with community-based stores and small lenders like cooperatives to provide business loans to more micro, small and medium enterprises or MSMEs.
"We have no partnerships with cooperatives but there are discussions with some. Nothing is final yet. But we're always open to partnerships," Baby Aquino, Fuse vice president for strategy and chief of product, told the Daily Tribune last Wednesday at an event by GCash and Fuse entitled "Borrow for Tomorrow" in Bonifacio Global City, Taguig.
Fuse and Globe's GCash provide a range of loan products using the mobile app. Fuse said 35 percent of its P100-billion loan disbursements as of July went to MSMEs. In terms of client locations, 70 percent are based in Metro Manila.
Best way to reach the market
"There are many who have expressed interest in partnering with us. We have a dedicated department for big partnerships but it also focuses on tapping retail shops and sari-sari stores. This is the best way to reach the market," Aquino said
Aquino said the firm is maximizing artificial intelligence or AI to determine possible business loan borrowers based on their behaviors when using GCash's various transactions.
"We're using AI because customers don't declare all the time that they are doing retail business on the side. For these customers, we give different communications or messages," she said.
Based on clients' feedback, Aquino said many MSME owners need bigger amounts but for short-term use.
"We continue to explore other products which can offer bigger loan amounts. Retail shops really appreciate that we can enable them to have stocks for their products but with GGives because they often are not able to sell all their inventory in one day or short period of time," Aquino explained.
GLoan offers credit up to P125,000 on a one-at-a-time disbursement with repayment period of up to 24 months.
GGives, on the other hand, offer multiple loans at the same time with a total amount of up to P125,000 which is paid in installments.
Campaign in public markets
As the Christmas season starts in the Philippines as early as this month, she said Fuse and GCash will be putting up campaigns, including financial literacy activities, in various public areas including public markets to reach MSMEs that will be setting up their stalls to sell products for Christmas gifts.
"We'll not stop and focus on MSMEs because there are still many of them to serve. They can use bigger credit amounts to buy additional stocks of their products and so increase their sales, as well," Aquino said.
GCash's marketplace links clients with financing firms and banks that can provide bigger amounts for long-term goals, such as purchase of equipment or real estate.
