ADB signs $30 million loan to expand digital credit access for MSMEs in the Philippines

The financing is intended to increase the use of digital technology in lending to underserved and unserved communities, particularly in rural and hard-to-reach areas.

(L-R) Martha Sazon, President and CEO of Mynt; Tony Isidro, President and CEO of Fuse Financing; and Christine Engstrom Director General for Sectors Department 3 at ADB | Image source: adb.org
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Women's Tabloid News Desk

The Asian Development Bank (ADB) has agreed a $30 million loan with Fuse Financing Inc. to widen access to credit for micro, small and medium-sized enterprises (MSMEs) in the Philippines through a digital lending platform, with a strong focus on women-owned businesses.

The financing is intended to increase the use of digital technology in lending to underserved and unserved communities, particularly in rural and hard-to-reach areas. Limited access to finance continues to be one of the most significant challenges facing local enterprises, with women-owned MSMEs often encountering tighter lending conditions and a lack of customised financial products.

“Supporting MSMEs to make them part of the broader value chain is key to achieving sustainable and inclusive growth in the country,” said ADB Philippines Country Director Andrew Jeffries. “MSMEs are an important segment of the local economy—employing over 60% of Filipino workers and contributing more than a third to the country’s gross domestic product. We are pleased to support this initiative that will boost MSMEs’ contribution to economic growth.”

Fuse Financing Inc. is the lending arm of GCash, the Philippines’ largest e-wallet provider. Under the agreement, Fuse will direct 60% of the loan proceeds towards women-owned MSMEs and extend financing to enterprises operating in provinces with high poverty incidence. The company will also provide non-collateralised loans to farmers, market vendors, sari-sari (convenience) store owners and other MSMEs, including first-time borrowers, enabling them to establish a formal credit history.

Alongside the loan, ADB will provide up to $125,000 in technical assistance to support Fuse in developing tailored financial products and delivering financial and digital literacy training for women, particularly those with limited formal education. The support forms part of ADB’s wider efforts to advance digital finance and financial inclusion across Asia and the Pacific.

Further backing for the initiative will come from the Mastercard Impact Fund, which will contribute $150,000 as a performance-based incentive to help Fuse expand its formal MSME portfolio, including additional support for new women entrepreneurs.

Fuse is wholly owned by Mynt, also known as Globe Fintech Innovations Inc. Globe Fintech is controlled by Ayala Corporation through its investments in Globe Capital Ventures and AC Ventures Holding. In 2024, more than 60% of Fuse’s MSME clients were first-time borrowers, highlighting its role in expanding access to formal finance. Nearly 60% of its lending portfolio supports women-owned MSMEs, while borrowers aged between 23 and 35 account for close to 60% of its customer base.

ADB is a multilateral development bank focused on supporting inclusive, resilient and sustainable growth across Asia and the Pacific. Established in 1966, it is owned by 69 members, including 50 from the region, and works with governments and partners to address development challenges through financing, policy support and partnerships.

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