Daily Tribune‘More than the scale of financing, what makes this partnership meaningful is its intent: To ensure that capital reaches entrepreneurs ready to grow but have long been underserved by traditional systems.’
THE partnership between the ADB and GCash’s lending arm, Fuse Finance Inc. aims to build an inclusive digital financial ecosystem by combining Fuse’s digital reach with ADB’s development financing.
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GCash’s lending arm, Fuse Finance Inc., secured a P1.75-billion (about $30 million) credit facility from the Asian Development Bank (ADB) to expand lending to micro, small and medium enterprises (MSMEs) in the Philippines.
The agreement, signed Friday, 6 February, marks ADB’s first fintech partnership of this kind in the ASEAN region.
The signing ceremony was held in Taguig City, with Mynt (GCash parent company) president and CEO Martha Sazon, Fuse Financing president and CEO Tony Isidro, and ADB director general for the Finance Sectors Department Christine Engstrom in attendance. The accord is titled “Driving Inclusive Finance for Filipino MSMEs.”
By Mico Virata
“This fintech partnership is the first of its kind for ADB in the ASEAN region and marks a significant step in advancing financial inclusion in the Philippines,” said Isabel Chatterton, director general for private sector operations department of ADB.
Chatterton said the partnership aims to build an inclusive digital financial ecosystem by combining Fuse’s digital reach with ADB’s development financing. “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.
The initiative is further supported by catalytic funding from the Mastercard Impact Fund, intended to help Fuse scale operations toward high-priority, underserved merchant segments.
MSMEs dominant in Phl economy
MSMEs continue to dominate the Philippine economy, contributing 40 percent of GDP and 63 percent of total employment. DTI data show that as of 2024, there are 1.24 million registered business establishments, more than 99% of which are MSMEs.
“More than the scale of financing, what makes this partnership meaningful is its intent: to ensure that capital reaches entrepreneurs who are ready to grow but have long been underserved by traditional systems,” said DTI Secretary Ma. Cristina Roque. “By aligning public-sector priorities with private-sector innovation, this collaboration helps widen the path to formal, fair, and sustainable access to finance for MSMEs.”
An ADB study also highlighted that access to credit is the second biggest challenge for MSMEs, after access to markets. It noted that without financing, a small business can shut down in less than a year, underscoring the urgent need for expanded support.
