By the staff
The Asian Development Bank (ADB) has extended a P1.75-billion loan facility to Fuse Lending Inc., marking the multilateral lender’s first fintech-focused credit line in Asia to bolster small businesses in the Philippines.
The partnership targets micro, small, and medium enterprises (MSMEs), with a specific mandate to support women-owned firms and businesses in the country’s poorest provinces.
Fuse, the lending arm of the GCash mobile wallet, will deploy the capital to a sector that forms the backbone of the Philippine economy. MSMEs currently account for 99.5% of total employment and contribute approximately 35% of national output, yet they consistently face significant hurdles in accessing traditional bank credit.
“I think it is a matter of pride for the Philippines that, out of all Asia, this is the first fintech lending facility that ADB has done with anybody. And that gives me pride to say that, obviously, that was based on our very thorough due diligence,” ADB director for Private Sector Financial Institutions Suhail Khan said.
Under the terms of the facility, half of the total funds must be funneled to businesses in provinces where poverty rates exceed the national average.
The initiative is bolstered by a $125,000 technical assistance grant from the ADB, designed to help Fuse create financial products specifically for women. This includes digital literacy training to ensure female entrepreneurs can navigate the shifting fintech landscape.
Mastercard is also joining the initiative, providing support via its Impact Fund to scale the reach of the program and accelerate financial inclusion goals.
