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 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.”

“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 of the Private Sector Operations Department of ADB.

“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,” Chatterton 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 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.

In addition to the loan facility, ADB committed up to $125,000 (around P7.3 million) in technical assistance to help Fuse develop tailored financial products and provide financial and digital literacy training for women entrepreneurs, particularly those with limited formal education.

“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,” said Sazon.

“By combining our shared expertise and digital reach, we are advancing financial inclusion and helping more Filipinos grow their businesses.”

Isidro said the partnership strengthens Fuse Lending’s mission to broaden credit access. “We are strengthening our mission to make credit accessible to every Filipino who needs it most,” he said.

“This investment enables us to accelerate our support for women entrepreneurs and small businesses in underserved areas, sectors with immense potential to drive the country’s long-term growth,” he added.

To support this expansion, Fuse will leverage GCash’s trust-scoring system, GSCore, as part of its credit assessment. The platform removes traditional lending barriers such as collateral and extensive documentation, enabling faster and more inclusive loan access for everyday Filipinos.