ADB, GCASH FUSE PARTNER TO UNLOCK INCLUSIVE FINANCE FOR MSMES AND WOMEN

Micro, small, and medium-sized enterprises (MSMEs) and women entrepreneurs across the Philippines are set to gain significantly better financial access after the Asian Development Bank (ADB) approved a PHP1.75 billion (USD30 million) loan facility to Fuse Financing Inc., the lending arm of GCash, the country's leading finance superapp and largest cashless ecosystem.

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This first-of-its-kind partnership in the Association of Southeast Asian Nations (ASEAN) region was officially launched on February 6 at the SMX Convention Center in Taguig City with the theme "Driving Inclusive Finance for Filipino MSMEs" and was witnessed by over 250 MSMEs, including sari-sari store and carinderia owners and women entrepreneurs. This milestone collaboration enables Fuse to expand its lending portfolio and scale access to credit for the country's most critical economic drivers.

MSMEs are a cornerstone of the Philippine economy, accounting for around 40% of the gross domestic product and 63% of total employment. According to the Department of Trade and Industry (DTI), there are 1.24 million registered business establishments as of 2024, over 99 percent of which are micro, small, and medium enterprises.

Yet, access to financing remains a key barrier. According to an ADB study, access to credit and capital ranks as the second most significant challenge for MSMEs, after access to markets. With such a financial challenge, it takes less than 12 months for a small business to shut down operations.

"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, Private Sector Operations Department of Asian Development Bank. "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."