(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
Fuse offers GCredit and
GScore for lending and credit scoring, respectively. GCredit is a credit line attached to one’s
GCash account with funds they can then use to buy groceries, medicine, or even
school supplies in partner merchants via GCash scan to pay. 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.
“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.
Fuse believes that with
data-driven lending, they can create a sustainable and scalable credit product
in the country.
GScore, Thomas said,
addresses the difficulty of most Filipinos to access credit due to absence of
formal documents that prove financial capacity. Instead, GScore provides a
“trust score” that people can earn without too much barrier just by engaging in
regular GCash transactions such as buying load, paying bills, purchasing goods
and services, among other things.
At present, many
Filipinos have no other recourse but to turn to informal or unlicensed money
lenders usually called “five-six” since they extend loans without collateral or
documentary requirements. In exchange, they
charge the borrowers exorbitant interest rates of 20 percent or higher,
thereby, leading to a debt trap where people find it hard to break out of a
borrowing cycle just to stay afloat.
This situation could be
avoided through GCredit. 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 added benefit, those who continue to use
and pay their GCredit properly will be given higher GCredit limits.
GCredit is currently at
its beta stage and will be available commercially within the year.
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