How GCash Fuse brings more Filipinos and MSMEs into formal credit, helping them move toward a better future

Backed by a Php 1.75 billion credit facility from the Asian Development Bank (ADB), Fuse Financing continues to enable Filipinos and MSMEs to borrow with dignity- moving away from predatory lending

In the heart of Barangay Bagong Silangan, the rhythmic sound of a freezer door opening and closing marks the pace of Ivy Joy Tomasar’s day. Two years ago, the 33-year-old mother of three was one of millions of “unbanked” Filipinos— with no credit history, no collateral, and little hope of securing a traditional bank loan. 

Today, she is a business owner. 

Tomasar turned to digital credit to fuel her aspirations. Driven by the need to support her three children, she first secured an online loan via GLoan, the flagship cash loan product of Fuse Financing Inc., the lending arm of GCash. With this initial capital, she launched a frozen food business in 2023. Today, her store stands as a testament to her hard work and the power of accessible financial tools.Tomasar’s story is becoming the new blueprint for nano and micro entrepreneurship in the Philippines. Access to credit is no longer confined behind strict paperwork but is now readily available through an online app, making formal and fair credit possible and accessible. 

“Marami pong babae ang walang trabaho, katulad ko. Nag-try akong manghiram sa GLoan, at ginamit ko ito sa negosyo. Ngayon, hindi na lang ako nasa bahay, nakakapag-negosyo na ako at nakakatulong sa asawa ko at sa mga anak namin,” said Tomasar. 

Similarly, Amelyn Rafael, 50, from Brgy. Taugtog, Botolan, Zambales, uses GLoan to pay for the ingredients of her online tokwa-sisig store—her source of income to take care of her four children and father, a dialysis patient. Her business operates on a consignment arrangement, in which she pays for the ingredients only after the sale has been made. 

“Malaking tulong ang GLoan, basta magagamit mo lang talaga sa negosyo, sa tamang paraan, o sa pangkabuhayan para sa pamilya,” Rafael noted. 

The MSME capital crunch 

The Philippine economy runs on businesses like Tomasar’s and Rafael’s. Micro, small, and medium enterprises (MSMEs) make up 99.6% of all businesses in the country and employ two-thirds of the total workforce, with 53% of small and medium enterprises led by women. Yet, they remain the most underserved.

Data shows that 79% of micro-enterprises struggle with inadequate capital.¹ For women-owned businesses, the mountain is even steeper: a 2023 ADB survey found that 58% of women entrepreneurs cite access to finance as a major challenge, compared to just 37% of men.² 

Historically, this “credit gap” forces small vendors into the hands of unlicensed lenders or high-interest “5-6” schemes. But as the digital landscape shifts, regulated online lending platforms like Fuse Financing have been offering a more transparent alternative to lending, providing access to collateral-free loans within the GCash app without the need for traditional documentary requirements. Through GScore, the app’s proprietary underwriting tool, it analyzes borrowers’ digital footprint to assess creditworthiness, removing common barriers to lending and offering pre-approved loans that happen in minutes, directly in-app. 

Such ease of use has supported MSMEs to access capital and move borrowers to formal lending. In fact, for most Fuse borrowers, GLoan is their first formal loan: 90% are first-time users of formal credit, and 1 in 3 borrowers are small business owners. 

However, access to credit is only part of the picture. The question is not just whether a loan exists, but whether it can arrive right away- especially when needed most. 

Changing the course of digital lending 

Immediate access to credit has become a vital lifeline for many Filipinos, and leveraging technology to dismantle traditional barriers has proven to be a powerful tool for financial inclusion. 

“We envisioned GLoan as a lifeline for millions of Filipinos. By bridging the gap for those in underserved sectors, we’ve watched small businesses transition from survival to success and individuals regain their financial footing. This is the true power of digital finance: leveraging technology to create lasting, inclusive impact,” said Tony Isidro, President and CEO of Fuse Financing Inc. 

Early this year, Fuse has also secured a Php 1. 75 billion credit facility from ADB, aimed at extending credit access to MSMEs, women entrepreneurs and those in high poverty areas. This first-of-its-kind partnership in the ASEAN region combines Fuse’s digital reach with ADB’s development financing, driving a more inclusive digital financial ecosystem. 

With unlicensed lenders continuing to target low-income Filipinos with exploitative terms and harassment tactics, Fuse remains committed to providing a fair, safe, and dignified lending experience to its borrowers, ensuring that digital credit serves as a bridge to financial stability rather than just a cycle of debt.