The Asian Development Bank (ADB) has announced the signing of a $30 million loan to Fuse Financing Inc. (Fuse) aimed at revolutionizing credit access for micro, small, and medium-sized enterprises (MSMEs) in the Philippines. By leveraging Fuse’s digital lending platform, the initiative targets the country’s most underserved sectors, with a strategic focus on women-led businesses and rural entrepreneurs.
Despite their vital role in the economy, Filipino MSMEs—particularly those owned by women—frequently encounter restrictive lending terms and a lack of collateral. This partnership utilizes digital technology to bypass traditional barriers, reaching “sari-sari” store owners, farmers, and market vendors in high-poverty provinces. “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 employ over 60% of Filipino workers; boosting their contribution is essential for the nation’s economic resilience.”
The financing structure is designed to ensure that the capital reaches those who need it most:
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Gender-Focused Allocation: At least 60% of the loan proceeds are earmarked specifically for women-owned MSMEs.
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Rural Outreach: Credit will be prioritized for businesses in provinces with high poverty incidence and limited access to traditional banking.
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Building Credit History: Fuse will provide non-collateralized loans, allowing first-time borrowers to establish a formal credit footprint.
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Technical Empowerment: ADB will provide $125,000 in technical assistance to develop tailored products and digital literacy training for women with limited formal education.
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Performance Incentives: The Mastercard Impact Fund is contributing an additional $150,000 as a performance-based incentive to scale Fuse’s MSME portfolio.
Fuse, the lending arm of GCash (under Mynt/Globe Fintech Innovations Inc.), has already demonstrated a significant impact on financial mobility. In 2024, over 60% of Fuse’s MSME clients were first-time borrowers, and nearly 60% of its current portfolio already supports women-owned enterprises.
By integrating these businesses into the formal financial system, ADB and Fuse are not just providing a loan—they are providing a ladder to long-term economic stability for millions of Filipinos.
