ADB Provides $30M Loan to Fuse to Expand Digital Credit for Philippine MSMEs

The Asian Development Bank (ADB) has signed a $30 million loan to Fuse Financing Inc. to expand access to credit for micro, small and medium-sized enterprises (MSMEs) through a digital lending platform, strengthening financial inclusion and supporting women-owned businesses across the Philippines.

The financing will help reach underserved and unserved entrepreneurs, particularly in rural and hard-to-access areas where traditional banking services remain limited.

Driving Inclusive Growth Through Digital Lending

ADB said the loan will promote the use of digital technologies to deliver financing to communities that face persistent barriers to credit access.

Limited access to affordable finance remains one of the biggest constraints for local enterprises, especially women-owned MSMEs, which often encounter stricter lending requirements, fewer tailored financial products, and reduced opportunities to scale their businesses.

"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.

He noted that MSMEs are central to the Philippine economy, employing over 60% of Filipino workers and contributing more than one-third of gross domestic product.

"We are pleased to support this initiative that will boost MSMEs' contribution to economic growth," he said.

Targeting Women Entrepreneurs and High-Poverty Provinces

Fuse, the lending arm of the Philippines' largest e-wallet provider GCash, will allocate 60% of the loan proceeds to fund women-owned MSMEs.

The company will also expand lending in provinces with high poverty incidence, ensuring credit access extends beyond major urban centers.

Fuse will provide non-collateralized loans to small-scale entrepreneurs such as:

• Farmers

• Market vendors

• Sari-sari (convenience) store owners

• First-time borrowers and informal business operators

The loans will help MSMEs build formal credit histories and unlock future access to broader financial services.

Technical Assistance to Build Tailored Products and Literacy

To strengthen the program's impact, ADB will provide up to $125,000 in technical assistance to help Fuse:

• Develop financial products better suited to women-led enterprises

• Deliver financial and digital literacy training

• Support women with limited formal education in navigating digital finance

ADB said this aligns with its wider strategy to expand digital finance and inclusion across Asia and the Pacific.

Mastercard Impact Fund Incentive Supports Scaling

In addition, the Mastercard Impact Fund will contribute $150,000 as a performance-based incentive to help Fuse scale up its formal MSME portfolio, including additional support for new women entrepreneurs.

Expanding Credit Access Through GCash's Ecosystem

Fuse Financing Inc. is wholly owned by Mynt, also known as Globe Fintech Innovations Inc., which is controlled by Ayala Corporation through its investments in Globe Capital Ventures and AC Ventures Holding.

Fuse has played a growing role in broadening access to formal credit in the Philippines:

• In 2024, more than 60% of its MSME clients were first-time borrowers

• Nearly 60% of its portfolio supports women-owned MSMEs

• Young adults aged 23 to 35 account for almost 60% of borrowers

Strengthening MSMEs as Engines of Economic Opportunity

ADB said the partnership demonstrates how digital finance platforms can help close credit gaps, empower women entrepreneurs, and strengthen local economies by bringing more MSMEs into the formal financial system.

The initiative is expected to support inclusive growth, job creation, and stronger economic resilience across the Philippines.