GCash loans surpass P250 billion mark

MANILA, Philippines — E-wallet leader GCash has exceeded a quarter of a trillion pesos in loans disbursed, stamping its mark as one of the most preferred lending options of Filipinos right now.

GCash said its borrowing arm has issued P253 billion in loans to 8.7 million borrowers to date, as it expands its role in providing credit to underserved markets.

GCash, through Fuse Lending Inc., offers borrowing services that users can avail themselves when running short in funds, namely, GLoan, GCredit and GGives.

Last year, GCash introduced a nano version of GLoan that lends as low as P100 for users in need of immediate cash. The product extends loanable amounts of P100 and P300, payable in 14 days, with zero interest.

GCash, the leading finance app in the Philippines, is widening its role in the credit sector to give lending access to low-income Filipinos. Likewise, the e-wallet wants to eradicate the dependence of informal sectors on onerous loans.

Similarly, GCash grew its wealth management space, with 13.2 million Filipinos registered with GSave, where funds can be deposited to yield interest.

The e-wallet also handles 1.2 million users in GStocks, 7.8 million in GFunds and 2.7 million in GCrypto, as Filipinos look for ways to grow their wealth in a challenging environment.

To date, GCash has also sold 51.4 million insurance policies to 14.6 million users of the app.

Globe Telecom Inc. chief finance officer Juan Carlo Puno said the e-wallet is launching GBonds to encourage Filipinos to invest in government-issued bonds. GCash is also bringing in GCoach, powered by artificial intelligence, that would help users manage their finances.

Puno, however, said GCash is yet to identify when exactly it would file an initial public offering in the Philippine Stock Exchange. Nevertheless, the e-wallet is preparing for its IPO debut, as executives monitor market movements that could affect valuation.

Puno said GCash is monitoring how the results of the midterm elections would affect investor appetite in the capital markets.

GCash is expected to make the largest IPO in Philippine history after receiving fresh investments from Japanese financier Mitsubishi UFJ Financial Group, raising its valuation to $5 billion, from $2 billion.