GCash lending, programs to bridge MSME digital divide

Ayala Group’s financial service provider GCash aims to bridge the digital divide within the micro, small and medium enterprise (MSME) sector through its lending services and specialized programs.

Tony Isidro, president and chief executive officer at Fuse Lending, the credit arm of GCash, said providing fair access to sustainable lending to MSME owners and even farmers will complement government efforts to push for inclusive economic growth.

“At GCash, we address these challenges by leveraging digital, data modeling, and AI technology to facilitate access to fair credit and pave the way for sustainable growth,” Isidro told a recent forum.

Frictionless experience

“More importantly, what that means is that it translates into a 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,” he added.

MSMEs make up 99.5 percent of total business enterprises nationwide. However, starting capital poses a significant obstacle with 57 percent of small businesses relying on informal loans, as reported by the Bangko Sentral ng Pilipinas.

To address this challenge, GCash utilizes its comprehensive Know-Your-Customer and lending trust rating systems to offer quick and accessible loans to aspiring entrepreneurs.

GScore

Business owners can borrow up to P125,000 based on their GScore, directly deposited into their GCash wallet, eliminating the burden of excessive paperwork.

Beyond MSMEs, GCash has expanded its reach to local farmers by partnering with Mayani and Farm Konekt to provide farmers and fishermen with access to non-collateralized loans and financial literacy sessions.

GCash said the initiatives aim to educate local farming and fishing communities about available climate investment opportunity.