Philippines' Digital Financial Inclusion Highlighted at UN; GCash Extends Credit to 11 Million

Mynt President and CEO Martha Sazon brought the Philippines’ digital financial inclusion experience to the global stage on Wednesday, highlighting the significant rise in formal financial account ownership among Filipino adults. Speaking at the UN Global Compact Leaders Summit in New York, Sazon reported that formal financial account ownership has increased from 29% before the pandemic to 50% of Filipino adults today. She also noted that GCash, Mynt's flagship mobile wallet service, has extended credit access to over 11 million borrowers, many from underserved communities. In her keynote address, titled “Rethinking Credit: From Invisible to Empowered,” Sazon centered the discussion on the Philippine experience, emphasizing how digital technology can bridge long-standing gaps in access not only to financial services but also to formal credit. Historically, despite a large and young population, a substantial portion of Filipinos remained outside the formal financial system, with formal borrowing penetration at only 12%, one of the lowest in Southeast Asia. This credit gap has left many Filipinos, particularly those lacking traditional documentation or collateral, dependent on informal lending sources for urgent needs like medical expenses or tuition. Sazon cited data indicating that 40% of Filipinos borrow from informal lenders, ranging from family and friends to loan sharks and predatory online lenders. Sazon explained that the growth of digital finance presents a crucial opportunity to address this gap by making financial services more accessible and relevant. Mobile wallets have been instrumental in expanding formal financial account ownership. At the core of GCash's strategy is GScore, its proprietary AI-powered credit scoring system. GScore assesses creditworthiness by analyzing customers’ digital financial behavior, offering an alternative to conventional credit assessments that heavily rely on collateral. Eligible customers with a good GScore can receive pre-approved loans without additional requirements, enabling GCash to offer credit tailored to how Filipinos actually manage their finances. She shared the story of Atty. Sheila, who successfully used a GCash loan to finance her bar review, ultimately passing the examination. Sazon framed this loan not just as a financial transaction but as an opportunity for personal advancement. GCash also offers “sachet-sized” loans, as small as P100, to help cover basic necessities or short-term expenses. Sazon stressed that financial inclusion extends beyond mere access to money; it involves ensuring Filipinos are seen, treated fairly, and allowed to borrow with dignity. The 11 million-plus borrowers on GCash, with women constituting half, largely represent individuals at the bottom of the economic pyramid. Sazon linked this expanded access to the broader Philippine economy, noting the central role of women in managing household finances. The impact of credit, she argued, can ripple beyond individual borrowers to sustain households, foster business growth, and keep the economy moving. Concluding her presentation, Sazon affirmed that the work of financial inclusion is ongoing. GCash is committed to continued innovation in lending and other services to bring more Filipinos into the formal financial system. "When people are seen, they can be trusted. And when they are trusted, they can be empowered," Sazon stated, encapsulating her message. The ultimate objective, she said, is "Finance for All," aiming to transform the nation "one Filipino, one story at a time."