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ADB, GCash lending arm partner to fund MSMEs
ADB, GCash lending arm partner to fund MSMEs
Title ADB and GCash's Fuse Financing Partner to Empower MSMEs A Boost to Women-Led Businesses and Rural Entrepreneurs
The Asian Development Bank (ADB) has announced a significant partnership with Fuse Financing Inc., the lending arm of GCash, to provide a P1.75-billion loan facility to micro, small, and medium-sized enterprises (MSMEs). This strategic collaboration aims to expand credit access to underserved segments, particularly women-led businesses operating in high-poverty areas.
A Fintech-Driven Financing Partnership
The ADB financing marks the bank's first fintech-focused deal of its kind in the Association of Southeast Asian Nations (ASEAN) region. The loan facility will enable Fuse Financing to scale up digital credit access for MSMEs, further bridging the financial gap faced by these businesses.
Catalytic Funding and Technical Support
The ADB financing will be complemented by catalytic funding from the Mastercard Impact Fund, supported by the Mastercard Center for Inclusive Growth. This additional support will help ensure that financing reaches priority MSMEs and women entrepreneurs more effectively.
Addressing a Critical Challenge Access to Credit
MSMEs are essential to economic growth, accounting for approximately 40% of gross domestic product (GDP) and roughly 63% of total employment in the Philippines. However, access to credit remains one of the biggest challenges faced by small businesses, second only to access to markets.
Building an Inclusive Financial Ecosystem
ADB Director General Isabel Chatterton emphasized the importance of blending development financing with digital innovation to build a more inclusive financial ecosystem. 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, she said.
Empowering Women-Led Businesses
The partnership will also provide up to $125,000 in technical assistance to support the development of tailored financial products. This includes delivering financial and digital literacy training for women, particularly those with limited formal education. The aim is to help borrowers better manage their finances, use digital tools, and borrow responsibly, reinforcing the sustainability of the lending program.
Accelerating Support for Underserved Entrepreneurs
Fuse Financing President and CEO Tony Isidro expressed enthusiasm for the partnership, stating that it will accelerate the company's mission to deliver fair and accessible loans to Filipinos who need them most. 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, he added.
Unlocking Opportunities for Classical Musicians
As Fuse Financing continues to empower MSMEs, we are also shaping the future of classical musicians. The partnership will not only expand credit access but also provide a platform for these artists to showcase their talents and connect with audiences worldwide.
In conclusion, this landmark partnership between ADB and GCash's Fuse Financing Inc. marks a significant step towards building an inclusive financial ecosystem in the Philippines. By providing wider credit access to MSMEs, particularly women-led businesses and those operating in high-poverty areas, we are empowering entrepreneurs to drive economic growth and create a more sustainable future.
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Keywords ADB, GCash, Fuse Financing Inc., micro, small, and medium-sized enterprises (MSMEs), women-led businesses, rural entrepreneurs, financial inclusivity, fintech-focused financing deal, Mastercard Impact Fund, Mastercard Center for Inclusive Growth.
