GLoans Sakto.
Borrowing money serves as a lifeline for many Filipino families, where a small loan can mean paying for urgent expenses or putting food on the table or, for some, it’s also to unlock the next phase of financial capital for their micro-businesses.
The Bangko Sentral ng Pilipinas (BSP) Financial Inclusion Survey (FIS) in 2021 shows that most Filipino borrowers, around 57%, still rely on informal sources for credit. Nearly half turn to family or friends or from their employers, while the rest turn to informal lending channels that are often predatory in nature, like the five-six and other similar schemes where interest rates can go as high as over 20% per loan cycle.
On paper, these arrangements may appear straightforward, but they often trap people in a cycle of debt that is hard to escape. High interest rates and short payment cycles can quickly turn small loans into overwhelming burdens. Failure to pay on time can lead to abusive collection practices, including public shaming, threats, and harassment.
Such a system has long been the default borrowing method for many Filipinos, not because they prefer it, but because formal financial services are often inaccessible. Bank loans, for instance, typically require collateral, credit history or formal employment records — requirements many in the unbanked and underserved sectors do not meet.
For the past nine years, Fuse Financing Inc., the lending arm of GCash, has worked to make fair and digital credit available and accessible to Filipinos, making financing more inclusive even for those outside the formal financial system.
“These products are for every Filipino to support their financial needs, allowing them to borrow easily and with dignity. This encourages borrowers to move to formal credit and promote positive change in the Philippine lending landscape,” said Anthony Isidro, president and chief executive officer of Fuse Financing.
Breaking barriers in digital lending
Founded in 2016 as part of Mynt, the holding company of GCash, Fuse has pursued its mission of offering “Fair loans that spark better every day for all Filipinos.”
As of the second quarter of 2025, it has reported P287 billion in total loan disbursements to 9.5 million borrowers nationwide. Mostly from socio-economic classes C, D and E, where 1 out of 3 are women, and live outside Metro Manila.
All credit transactions are integrated into the GCash application, with credit scores generated through its in-house AI-powered GScore system. By embedding credit products directly into the application, Fuse eliminates traditional hurdles such as collateral, paperwork, and long approval periods.
The company offers several products, including GLoan, which provides cash loans of up to P150,000; GGives, an installment option for purchases of up to 24 months without downpayments; GCredit, an instant credit line of up to P50,000; Borrow Load, prepaid load borrowing across all networks; and Sakto Loans, a “nano-loan” product that allows customers to borrow as little as P100 which can be repaid in 14 days, just enough to bridge their financial needs to the next payday.
“As more Filipinos adopt digital tools for their financial needs, Fuse’s lending model is positioned to support the country’s continuous push toward financial inclusion, especially for the underserved and unbanked sector of the society,” Mr. Isidro added.
Human-centered approach to lending
Mr. Isidro’s approach is rooted in empathy and practicality, having worked in industries from consumer goods to insurance, he applies a consumer-first mindset to the Fuse lending model. He views Fuse as more than a credit provider, positioning it as a partner in helping Filipinos manage and grow their finances.
Fuse has also targeted micro and small enterprises with 1 out of 3 borrowers are small business owners which often struggle to access affordable credit. Through partnerships with companies such as Puregold and Suy Sing, eligible store owners can take zero-interest loans starting at P3,000 to restock inventory. Flexible terms of 7 or 14 days align repayment with sales cycles to help owners manage cash flow.
Taking its first step to green financing, Fuse partnered with Helios to finance residential solar solutions through GGives, offering zero down payment, interest, and processing fees. The program aims to make clean energy accessible to households often excluded by the banking sector and eliminate the burden of high upfront fees and collaterals.
Under Mr. Isidro’s leadership, Fuse has challenged the long-standing belief that lending to the unbanked is too risky. By integrating credit services into a platform already used by millions, the company has removed the intimidation and inaccessibility factors associated with banks and loan offices.
Moreover, the company’s repayment rates remain strong, suggesting that financial inclusion and business sustainability can work together.
Expanding access to credit for the most essential and the most vulnerable
Fuse Financing has also recently launched programs expanding access to essential services with high upfront fees, like education and healthcare, through GGives.
Among the services is which allows students to spread tuition payments across manageable installments in partnership with several institutions under iPeople Inc. A similar initiative, has also been launched together with Healthway Medical Network, enabling patients to access zero-interest installment plans to pay for medical tests.
Mr. Isidro said the strategy addresses specific financial realities that different population segments face. “By launching responsible, digitally enabled lending solutions, Fuse has responded to the needs of borrowers and revolutionized how lending and credit work in the Philippines,” he said.
As Fuse moves forward, the company aims to provide practical financial tools that support business growth and help families manage unexpected expenses. It also intends to leverage innovation, removing traditional credit barriers while remaining grounded in the everyday realities of Filipinos, whether it’s basic to business growth needs.
“The positive and transformative impact continues to ripple outward from households to small business owners to the underserved and unbanked segments gaining access to formal credit for the first time,” Mr. Isidro concluded.
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