Micro, small and medium enterprises (MSMEs) in the Philippines—especially women-owned firms—stand to gain significantly from the P1.75-billion loan facility secured by Manila-based Asian Development Bank (ADB) for Fuse Financing Inc., a move that underscores a decisive push to close the financing gap.
ADB Director for Private Sector Financial Institutions Suhail Khan said the partnership directly advances the government’s drive to aggressively expand MSME access to capital.
“I think it is a matter of pride for the Philippines that, out of all Asia, this is the first fintech (financial technology) 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,” he said in a media interview Friday following the partnership launch at the SMX Convention Center in Taguig City.
Fuse Financing Inc. serves as the lending arm of GCash, the dominant mobile payments platform operated by Globe Fintech Innovations Inc.
MSMEs remain the backbone of the Philippine economy, generating around 35 percent of national output and accounting for approximately 99.5 percent of total employment—figures that highlight the urgency of sustained financial support.
In addition to capital infusion, ADB will inject $125,000 (about P7.3 million) in technical assistance to fast-track the development of tailored financial products and roll out financial and digital literacy training specifically for women.
Mastercard has also stepped in as a partner, channeling Impact Fund support to help Fuse aggressively expand its reach to target beneficiaries and push financial inclusion forward.
Khan said the facility will empower Fuse to deploy capital to MSMEs, with 50 percent earmarked for enterprises in provinces with poverty rates exceeding the national average. The program is designed to provide revolving funds that enable MSME owners to scale up operations and decisively break out of poverty.
He further emphasized that digital lending sharpens transparency and strengthens monitoring of fund utilization.
Overall, Khan framed the partnership as a clear win for all stakeholders involved.
Fuse Financing Inc. president and CEO Tony Isidro said he is confident the partnership will deliver tangible results for the MSME sector. While stopping short of setting a deployment timeline, he said the initiative is “built on clear metrics” and taps directly into ADB’s institutional expertise.
“That’s a testament on how serious we are in really making an impact on MSME space,” Isidro said.
PIA PHOTO