ADB Backs GCash with $30M to Fuel Philippine MSME Growth

MANILA, Philippines – February 12, 2026 – In a pioneering move for Southeast Asia, the Asian Development Bank (ADB) has partnered with Fuse Financing Inc., the lending arm of Philippine fintech giant GCash, to inject $30 million into the country's underserved small business sector. This landmark credit facility is designed to dramatically expand loan access for micro, small, and medium enterprises (MSMEs) and women entrepreneurs, particularly those operating in high-poverty regions.

The collaboration, a first of its kind between the ADB and a fintech company in the ASEAN region, signifies a strategic pivot in development finance, leveraging digital technology to dismantle long-standing barriers to capital. The initiative also involves support from the Mastercard Impact Fund, creating a powerful public-private alliance aimed at fostering inclusive and sustainable economic growth.

A New Frontier for Development Finance

This partnership marks a significant evolution in how multilateral institutions like the ADB are approaching financial inclusion. By channeling funds through a digital platform with over 81 million registered users, the ADB aims to reach a segment of the economy that has been notoriously difficult for traditional banks to serve efficiently and profitably.

"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," stated Isabel Chatterton, Director General of the ADB's Private Sector Operations Department. The bank conducted extensive due diligence on Fuse's technology, regulatory compliance, and financial models, viewing the Philippines as a prime market to test a model that could potentially be replicated across Southeast Asia.

Traditionally, development funds are funneled through government agencies or conventional banks, which often struggle to lend to MSMEs due to a lack of collateral, limited credit histories, and the high operational costs of servicing small loans. By partnering with GCash, the ADB is betting on a data-driven approach. Fuse Financing utilizes GCash's proprietary 'GScore' credit scoring model, which assesses creditworthiness based on a user's digital transaction history, bypassing the need for physical documents and collateral that most micro-entrepreneurs lack.

Fueling the Philippines' Economic Engine

The infusion of capital addresses a critical bottleneck in the Philippine economy. MSMEs are the nation's economic backbone, comprising over 99% of the 1.24 million registered businesses as of 2024. They employ over 60% of the Filipino workforce and contribute roughly 40% to the country's GDP. Yet, their access to formal credit remains severely constrained.

According to an ADB study, access to credit is the second most significant challenge facing these businesses. Official data from 2024 shows that MSME loans accounted for a mere 3.9% of total bank lending. This financing gap forces many entrepreneurs to rely on informal lenders who charge exorbitant interest rates or, worse, to shutter their operations within their first year. This partnership aims to provide a formal, fair, and sustainable alternative.

"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 Department of Trade & Industry (DTI) Secretary Ma. Cristina Roque. At a launch event in Taguig City attended by over 250 MSMEs, the DTI nominated 10 businesses to receive initial capitalization support, demonstrating the program's immediate focus on tangible impact.

The Digital Solution to a Systemic Problem

Fuse Financing has already established a significant track record in disrupting the traditional lending landscape. Leveraging the vast ecosystem of its parent company GCash, Fuse has disbursed approximately $3.2 billion in loans to over seven million Filipinos, many of whom were accessing formal credit for the first time. In 2024, over 60% of its MSME clients were first-time borrowers, and nearly 60% of its portfolio supported women-owned businesses.

"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," said Tony Isidro, President and CEO of Fuse Financing Inc. The company provides non-collateralized loans to a wide array of micro-entrepreneurs, from market vendors and farmers to the owners of ubiquitous sari-sari (convenience) stores.

For Mynt, the parent company of GCash, the ADB partnership validates its mission and business model. "Our partnership with ADB strengthens our company's foundation for sustainable and inclusive growth," explained Mynt President and CEO Martha Sazon. "This underscores our commitment to supporting MSMEs' impact and scale."

Targeting Impact Where It's Needed Most

A key pillar of the program is its explicit focus on women and entrepreneurs in high-poverty areas. While the national poverty rate has declined, significant regional disparities persist. Regions like the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and the Zamboanga Peninsula continue to face high poverty incidence, and their economies are often dominated by informal activities where access to capital can be transformative.

To ensure the funds are used effectively, the partnership goes beyond simply disbursing loans. The ADB is providing technical assistance to help Fuse develop tailored financial products and deliver crucial financial and digital literacy training. This educational component is vital for empowering borrowers, particularly women with limited formal education, to manage their finances, grow their businesses sustainably, and build resilience against economic shocks.

Further bolstering this targeted approach is the support from the Mastercard Impact Fund, administered by the Mastercard Center for Inclusive Growth. The fund has provided catalytic funding to help Fuse enhance its outreach and service delivery to these priority segments. This multi-stakeholder collaboration between a development bank, a fintech leader, a global payments network, and government bodies represents a holistic strategy, combining capital with the digital infrastructure and educational support needed to unlock the full potential of the Philippines' smallest enterprises.