MANILA – Micro, small, and medium enterprises (MSMEs) in the Philippines, particularly women-owned firms, are set to benefit from a PHP1.75-billion loan facility extended by the Asian Development Bank (ADB) to Fuse Financing Inc.

ADB Director for Private Sector Financial Institutions Suhail Khan said the partnership supports the government’s push to expand MSME access to financing.

“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 after the launch of the partnership at the SMX Convention Center in Taguig City.

Fuse Financing Inc. is the lending arm of GCash, the mobile payments platform of Globe Fintech Innovations Inc. MSMEs contribute about 35 percent of the country’s output and account for roughly 99.5 percent of total employment.

Beyond capital support, ADB will provide USD125,000 (about PHP7.3 million) in technical assistance to help Fuse develop tailored financial products and deliver financial and digital literacy training for women. Mastercard is also partnering in the initiative, providing Impact Fund support to help Fuse reach target beneficiaries and advance financial inclusion.

Khan said the facility will enable Fuse to extend capital to MSMEs, with 50 percent allocated to enterprises in provinces with poverty rates above the national average. He also highlighted the role of digital lending in improving transparency and tracking of fund usage.

Fuse Financing Inc. president and CEO Tony Isidro said he is optimistic about the partnership’s impact on the MSME sector.

“That’s a testament on how serious we are in really making an impact on MSME space,” Isidro said.

(PNA)