The Department of Trade and Industry (DTI) is betting big on fintech to unlock long-standing credit bottlenecks for micro, small, and medium enterprises (MSMEs), welcoming a P1.75-billion digital credit facility as a potential game changer for grassroots businesses.
DTI Secretary Cristina A. Roque hailed the partnership among Fuse Financing, the Asian Development Bank (ADB), and the Mastercard Impact Fund as a concrete boost to the government’s Bagong Pilipinas agenda, which prioritizes inclusive growth and wider economic participation.
“Financing is the lifeblood of MSMEs. Without it, they cannot move as fast as they envision,” Roque said, noting that limited access to formal credit continues to restrain small business expansion nationwide.
The facility will allow Fuse—the lending arm of GCash operator Mynt—to scale up digital lending through GCash’s AI-powered GScore. The system evaluates borrowers based on digital transaction behavior rather than traditional collateral or lengthy credit histories, opening the door to faster loan approvals and reduced paperwork for underserved entrepreneurs.
DTI sees the model as especially impactful for micro-entrepreneurs such as public market vendors and sari-sari store owners, many of whom still depend on informal lenders charging steep daily interest rates.
By shifting borrowers toward regulated digital credit, Roque said the initiative could ease cash flow pressures and free up capital for inventory, expansion, and job creation.
Beyond financing, the partnership also brings capacity-building support. ADB is providing technical assistance for product development and financial literacy programs, with a focus on women-led enterprises, while Mastercard’s catalytic funding will help extend the platform’s reach to more MSMEs across the country.
Roque added that DTI plans to align digital credit initiatives with its broader push to onboard MSMEs into e-commerce and the digital economy. The P1.75-billion facility, she said, signals growing confidence in fintech-driven solutions to narrow the MSME credit gap—and accelerate inclusive growth in the Philippines.
