GLoan lords over microfinance trade

In a country where access to financial services has historically been a challenge for many, GCash’s GLoan has reshaped the digital lending landscape.

According to a recent study by RLR Research and Analysis, GLoan has emerged as the leading digital lending brand for last year, cornering 61 percent of digital lending users.

This achievement not only sets GLoan apart from 12 competing financial applications but also underscores its role as a catalyst for financial inclusion.

GCash owes much of its success to GLoan, its digital micro-lending feature powered by Fuse Lending, GCash’s official lending arm.

RLR Research and Analysis’ study revealed that the app has become the go-to platform for Filipinos seeking accessible and fair financial solutions.

The numbers speak volumes: 84 percent of GLoan users are first-time borrowers in the formal credit system. Among these borrowers, six out of ten had never utilized digital or traditional loan services before. This breakthrough highlights GLoan’s impact on bridging the gap for the unserved and underserved segments of society.

Financial inclusion empowers poor

Fuse Lending’s President and CEO, Tony Isidro, attributes GLoan’s success to its mission-driven approach. “We are pleased to see the RLR report, which reaffirms our commitment to drive financial inclusion by serving more of our financially underserved and unserved kababayans,” Isidro said.

“Through GLoan, we are fulfilling our mission of making financial opportunities accessible for all Filipinos, especially those who do not have access to formal lending to help them during rainy days.”

GLoan’s focus on innovation and tailored solutions has enabled it to meet the unique needs of its users. This is particularly evident in the demographic profile of its borrowers. According to the study, four out of ten GLoan borrowers are manual laborers, such as factory workers, janitors and drivers, while two out of ten are housewives or househusbands.

These groups, often overlooked by traditional financial institutions, now have a lifeline to credit that allows them to manage finances, build credit histories and improve their financial literacy.

Accessible financing transforms lives

The transformative power of GLoan lies in its ability to provide fair and accessible loans, even to first-time borrowers. By offering a seamless and user-friendly experience, GLoan has redefined the way Filipinos interact with formal lending services.

This approach has not only increased financial literacy but also empowered users to make informed decisions about managing their finances.

One of the most striking aspects of GLoan’s impact is its role in addressing the needs of micro-entrepreneurs and small business owners.

Fuse Lending has disbursed over P155 billion to more than 5.4 million unique borrowers, many of whom belong to the SME sector. This access to credit has enhanced cash flow, promoted job creation, and contributed to community development — all of which underscore the broader economic benefits of financial inclusion.

GLoan’s diverse user base

The study painted a compelling picture of GLoan’s borrowers. The fact that the majority are first-time users of formal credit systems highlights a significant step forward in democratizing financial services.

For many, GLoan serves as a gateway to better financial opportunities. By extending credit to those previously excluded by traditional financial institutions, GLoan is fostering a culture of financial empowerment.

“Over the last three years that we’ve been tracking the Philippine loans category, the exponential growth of GLoan signals the rising relevance of digital loans, especially among the unserved and underserved markets where access to traditional formal loans remains a challenge,” RLR Research and Analysis’s research director Homer Marundan said.

Driving innovation

The success of GLoan is also a testament to the power of financial technology in addressing the unique needs of Filipinos. By leveraging the capabilities of digital platforms, Fuse Lending has created innovative loan products that cater to the specific challenges faced by its users.