The Asian Development Bank’s (ADB) first-ever fintech lending facility in Asia signals a pivot toward digitizing credit in the Philippines, as GCash lending arm Fuse Financing Inc. seeks to displace the informal “5-6” lending market that has long dominated the local economy.

Speaking to reporters on the sidelines of the ceremonial signing with Fuse, Suhail Khan, ADB director for private sector financial institutions, said the $30 million credit facility (around ₱1.75 billion) is designed as the foundation for a multi-year partnership rather than a standalone transaction.

“ADB strongly believes in long-term partnerships. Obviously, this is not a one-off. We really hope that this first experience for both sides will be very positive and that it will enable us to continue this partnership,” Khan said.

Under such long-term partnership, Fuse will be able to tap ADB for additional liquidity whenever credit demand surges. ADB also noted that this is its first fintech lending facility in Asia.

Fuse President and Chief Executive Officer Tony Isidro highlighted the company’s move into a sector that drives the Philippine economy but remains largely underserved by traditional banks. A key goal of the deal is to provide a formal alternative to predatory informal lending practices.

“The space where Filipinos—both customers and micro, small, and medium enterprises (MSMEs)—still rely on ‘5-6’ schemes and loan sharks remains very large. That’s exactly what drives us to keep growing the business and provide more loans to deserving Filipinos,” Isidro said.

“Our goal is to bring them to formal lending so they can borrow with dignity,” he added. Isidro also assured that Fuse will comply with the 12-percent interest rate ceiling set by the Securities and Exchange Commission (SEC).

“Our position is always to comply with regulators. I’m assuming you’re referring to the recent SEC pronouncement on caps, and of course, our stance is to follow the regulation, which we are doing,” he said.

Khan explained that the loan facility will enable Fuse to provide working capital loans to MSMEs, particularly women-led businesses, with funds that will continually be reused rather than tied up.

Beyond its partnership with Fuse, Khan said ADB is exploring several similar ventures across Asia.

“Fintech is a space where ADB really wants to play a role—not just in the Philippines, but across Asia. We are looking at many such ventures,” he said.

Despite the economic slowdown in 2025, Isidro remained optimistic about Fuse’s lending prospects, citing significant growth over recent years. “We’ve seen quite significant growth over the last few years, and we continue to be optimistic about our growth prospects,” he said.