Tuesday, July 3, 2018

The Dream of Credit For The underserved and Unbanked Filipino Is Now A Reality

(From L-R) GCat, Fuse Head of Lending, Kim Seng, Mynt President and CEO Anthony Thomas, Mynt Chief Data and Risk Officer and CEO of Fuse Lending Jean Francois Darre and Product Manager Myles Salud

According to a 2017 World Bank survey, Eighty percent of adult Filipinos are unbanked and don't have any access to credit lines. When in desperation, their only recourse is to borrow with outrageous interest rates of 20% or more from informal and unlicensed money lenders called "five-six". It is simple and enticing for the regular Juan because no collateral or supporting documents are needed. Unfortunately, it leads to a debt trap that people find hard to break out off just to stay afloat.



Good News

A game-changing innovation is set to expedite the state of financial inclusion of the Philippines this year as Mynt, the fintech startup owned by Globe Telecom, Ant Financial, and Ayala Corporation launch "GCredit".

What is GCredit?


GCredit is a credit line attached to one's GCash account, with funds they can use to buy goods,  groceries, medicine, or even school supplies in partner merchants via GCash scan to pay. The amount of  GCredit available to a GCash account holder will all be based on his GScore

What is GScore?

GScore, a credit scoring platform, addresses the difficulty of most Filipinos to access credit approvals due to absence of formal documents that prove financial capacity. GScore provides a "trust score" that people can earn without too much barrier by engaging in regular GCash transactions, such as funding the GCash account, buying load, paying bills, purchasing goods, and services among other things. The higher the GScore, the more GCredit becomes available.

With GCredit, once a customer pays their credit balance, it replenishes instantly. This provides customers peace of mind so they can have access to funds whenever they have emergencies or life milestones. As an added benefit, those who continue to use and pay their GCredit properly will be given higher GCredit limits.

Fuse

Fuse, Mynt's lending arm, offers GCredit and GScore for lending and credit scoring, respectively. The amount they can avail of is determined by GScore, the first trust score in the Philippines which checks the financial capacity of an individual to pay back a credit based on their GCash usage. GCash is a mobile money service of Mynt.

Fuse believes that with data-driven lending, they can create a sustainable and scalable credit product in the country.

"We are committed to enable the aspirations of the financially-underserved.  With Fuse, we aim to create, and sustain opportunities for growth and stability for individuals, and businesses alike through responsible, and fintech-enabled lending," said Anthony Thomas, president and chief executive officer of Mynt

Download the GCash App (available on both IOS and Android).  Load it up and use it to buy load for any network, pay your bills, and use the QR Scan-to-pay to buy goods at leading retailers. 
Improve your GScore as you use it. Activate your GCredit and find out what your loanable amount is.

GCredit is currently at its beta stage and will be available commercially within the year.

For more information, visit: www.fuselending.com/GCredit



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Monch "Monchster" Henares is a feature writer for the Philippine Daily Inquirer's "Road Talk", media blogger @ MonchsterChronicles, tech and motoring specialist, inventor, and automotive engineer. He managed the motorpool for a limousine company in Las Vegas, Nevada, USA. He is now based in Manila, Philippines and is the President of BuidMeUp Corp.
You may e-mail him at monchnrs@gmail.com
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