Fuse CEO Tony Isidro Highlights How Fintech is Helping Small Businesses Unlock Better Financing at the ASEAN MSME Summit

Fintech is using technology to make financing more accessible to small businesses, giving entrepreneurs greater opportunities to fund day-to-day operations and business expansion. By improving access to capital, fintech can help drive the growth of micro, small, and medium enterprises (MSMEs), which remain a vital part of the Philippine economy.

 

Fuse Financing, Inc. president and CEO Tony Isidro shared this view while speaking at the ASEAN MSME Summit 2026, highlighting the potential of micro and small businesses, including sari-sari store owners and other small merchants, to grow with the right financial support.

 

“Just because a business, particularly a micro-entrepreneur, is invisible in a formal business, it doesn't mean that they're not credible,” Isidro said.

 

Micro and small enterprises have long struggled to access traditional credit, held back by strict collateral demands and unestablished credit histories. Today, innovative digital financial

solutions are bridging this gap, democratizing access to fair and credible loans and operational tools that enable small businesses to scale sustainably.

 

For Fuse Financing, helping more small businesses access financing means recognizing the potential of entrepreneurs who may have limited experience with traditional lenders. With access to legitimate financial support, these businesses can purchase equipment, replenish inventory, improve operations, manage working capital, and expand their businesses.

 

Digital platforms help make this access more practical by allowing MSMEs to manage financial activities within an ecosystem they already use for their businesses. Through GCash, merchants can accept customer payments, pay suppliers and other merchants, and access other financial and business services.

 

These activities can also provide additional information that may support credit assessment and underwriting. Digital transaction data can give lenders a more current view of a merchant’s business activity, complementing the information available through traditional financial records. Loan eligibility, however, remains subject to credit evaluation.

Isidro explained how the digital ecosystem of GCash can provide lenders with a broader view of merchants and their business activity.

 

“[Digital transactions] are more powerful versus the traditional financial statement, which would be static, whereas their behavior within the GCash ecosystem is more dynamic and can be observed over time. So you get a glimpse of each merchant's flow of cash, which enables us to have a good footprint, or a good [view] of the capability of each merchant,” he said.

Speaking at a panel discussion, Tony Isidro highlighted how digital transactions can help financial service providers better understand the needs of MSMEs. By seeing how merchants use digital financial services in their day-to-day operations, providers can gain insights that will allow them to better respond and support the growth of MSMEs

Meanwhile, Isidro also encouraged merchants to continue using GCash for their regular financial activities as they build their digital financial footprint.

 

“Whether it's accepting payment from your customers, or paying other merchants, paying your suppliers in the GCash app, we encourage merchants to continue using the app for their financial operations,” he said.

 

As ASEAN’s digital economy grows, fintech can help bring more MSMEs into the formal financial system by expanding access to financial services and financing. For small businesses, greater access to appropriate financing can provide opportunities to strengthen their operations and pursue growth.

 

For more information, please visit www.gcash.com.

Filipinos Gain Opportunity to Earn from San Miguel Share Sale through GStocks PH

Filipinos experienced a more convenient way to participate in San Miguel Corporation’s (SMC) recent ₱30-billion preferred share offering through GStocks PH, offered by broker AB Capital Securities Inc., in the GCash app. The offering saw strong retail demand on the platform, giving GCash users access to preferred shares with annual dividend rates of up to 8.6483%.

The SMC offering featured three preferred shares, all priced at ₱75 per share: SMC2V, with an 8.0401% annual dividend rate; SMC2W, at 8.3570%; and SMC2X, at 8.6483%. On GStocks PH, demand exceeded the broker’s initial allocation across all three shares, with SMC2V oversubscribed by 3.1 times, SMC2W by 1.3 times, and SMC2X by 1.7 times. The strong demand highlights growing interest among Filipino retail investors in opportunities beyond traditional savings, and the role of digital investing platforms in making the capital markets more accessible to a broader segment of Filipinos.

Expanding access to investing through digital platforms

In the past, retail investors typically needed a bank account and had to coordinate with a broker to invest in the stock market, much less subscribe to an initial public offering (IPO) or follow-on offering (FOO). Even after completing these steps, investors traditionally had to wait until after the offer period to confirm orders for share offering, making the process less convenient. This is especially challenging when demand exceeds availability, causing an offering to be oversubscribed and potentially resulting in incomplete or zero share allocations.

 

GStocks PH’s digital IPO/FOO subscription feature, offered by AB Capital Securities, streamlines this experience by giving investors greater visibility throughout the subscription process. During the SMC offering, the platform distributed its initial allotted broker shares in real time after order confirmation, making allocations guaranteed on a first come, first served basis. Users could also check the availability of broker’s shares through the subscription meter.

 

When the broker’s initial allotment became fully sold out on the platform, retail investors could still digitally place orders on GStocks PH and check their allocation results directly through the GCash app after the offer period, without having to coordinate separately with a physical broker.

 

Together, these features make it easier for more Filipinos to participate in share offerings through a more transparent and convenient digital investing experience.

 

Fully verified GCash users who want to start investing in stocks, building a diversified portfolio, or participating in corporate share offerings, can open the GCash app, go to the Invest tab, select GStocks PH, and open an account with AB Capital Securities Inc. No bank account is required.

 

As digital investing continues to evolve, GCash remains committed to providing accessible and inclusive financial tools that help Filipinos invest, build wealth, and work toward a more secure financial future.

 

For more information, please visit www.gcash.com.

PH Life Insurance Pays Almost 70 Billion In Benefits; Industry Grows Close to 18% in First Half of 2026

MANILA, Philippines – The Philippine life insurance industry recorded strong growth in the first half of 2026, with total premium income reaching ₱229.98 billion, up 17.9% from the same period last year. At the same time, life insurers paid a total of ₱69.2 billion in benefits to policyholders and beneficiaries, representing a 19.5% increase year-on-year.

“The industry's continued growth reflects the increasing recognition among Filipino families of the importance of financial protection, savings and long-term financial security. More importantly, the ₱69.2 billion paid in benefits during the first half demonstrates how life insurance delivers on its promise when customers need it most,” said Sjoerd Smeets, President of the Philippine Life Insurance Association (PLIA).

Protecting More Filipino Families

The life insurance industry continues to expand its reach across the country. Through individual and group insurance programs, the sector now provides some form of insurance coverage to approximately 63.5 million Filipinos, equivalent to around 55% of the country's population. This reach is supported by a nationwide distribution network consisting of 857 branch offices, more than 228,000 licensed financial advisors, and approximately 18,400 employees serving policyholders throughout the Philippines.

Contributing to Economic Development

Beyond providing financial protection, the life insurance sector continues to play a significant role in supporting national economic development. Industry invested assets exceeded ₱2 trillion during the period, reinforcing the sector's position as one of the country's major institutional investors and contributors to long-term capital market development.

The industry's growing asset base enables life insurers to channel long-term funds into investments that support economic growth, infrastructure development, and financial market stability.

Improving Financial Inclusion

Insurance penetration, measured as total insurance premiums relative to the country's GDP, improved to 1.96% from 1.79% a year ago. This indicates a growing appreciation among Filipinos of the role insurance plays in building financial resilience and protecting families against life's uncertainties.

Looking Ahead

The life insurance industry remains committed to developing accessible and value-driven protection, health, savings, and investment solutions that address the evolving needs of Filipino families. The sector will continue expanding both traditional and digital distribution channels, strengthening financial literacy initiatives, and promoting greater financial inclusion across the country.

As more Filipinos recognize the value of financial protection and long-term planning, the industry remains focused on helping families achieve greater financial security while contributing to the nation's economic progress.

The Philippine Life Insurance Association (PLIA) is the umbrella organization of life insurance companies operating in the Philippines. Its members account for virtually the entire life insurance market and are committed to promoting financial security and inclusion for Filipino families.

CashKO Scales Calamity Microinsurance Nationwide to Widen Protection for Filipino Families vs. Typhoon, Flooding Risks

02 September 2026 Manila, Philippines — CashKO, the microinsurance subsidiary of Philippine InsurTech firm RuralNet, is scaling its calamity microinsurance program nationwide to provide an immediate financial safety net for underserved Filipino households. This comes as heavy monsoon rains and destructive typhoons continue to inundate communities across the country.

The service expansion comes as the need for faster disaster protection has become increasingly urgent. National Disaster Risk Reduction and Management Council (NDRRMC) data revealed about 7.5 million people were affected by the combined effects of tropical cyclones Luis, Maymay, Neneng, and the southwest monsoon, or “habagat,” alone, leaving them vulnerable from risks of income and livelihood disruptions. Subsequently, these natural disasters also increase risks for Microfinance Institutions (MFIs), which may face payment challenges and greater exposure across their lending portfolios.

During his speech at the 2026 Microfinance Council of the Philippines Inc. (MCPI) annual conference, Justin Arcenas, President and CEO of CashKO Insurance Brokerage, emphasized that demand for financial protection is evident in 2024 survey data showing 87% of MFI borrowers expressing interest in calamity protection and identifying typhoons as their primary concern.

Addressing these vulnerabilities, CashKO is expanding its calamity protection plans through RuralNet’s digital, API-driven platform. By integrating directly into partner financial systems, CashKO delivers a "made-to-measure" microinsurance model that tailors coverage parameters, payout thresholds, and loan integration to fit the specific needs and risk profiles of each partner organization’s members. This model facilitates rapid emergency liquidity when disasters hit, building on the success of an initial pilot that delivered critical relief payouts to victims of Typhoons Tino and Uwan.

To balance thorough loss verification with immediate emergency needs, CashKO’s scaled program combines traditional indemnity insurance with an upcoming parametric insurance model. The indemnity insurance, which is currently available, provides payouts based on verified damage to a policyholder's home, supported by photos and required documentation. This provides a familiar claims-based approach, but large-scale disasters can make individual damage assessment and documentation more challenging as claim volumes increase.

Meanwhile, CashKO will launch its parametric insurance program in Q4, which will introduce a faster way of responding to certain disaster events. Rather than assessing individual losses before a payout can be triggered, parametric coverage uses predefined disaster conditions, such as typhoon category or earthquake magnitude. Supported by satellite and ground-station data, payouts can be activated once the agreed thresholds are reached, reducing the need for lengthy individual claims assessments.

“For vulnerable communities, the value of insurance is measured by how quickly and effectively it can help them recover when disaster strikes. By combining indemnity and parametric protection, we can offer borrowers and financial institutions solutions that are better suited to their different needs, while making critical assistance faster and more accessible. Our goal is to ensure that a calamity does not become a setback that pushes families further into financial hardship,” Arcenas added.

The impact of immediate liquidity is reflected in initial claims experiences. Joy Verano, a teacher from Masbate City, shared how the microinsurance product helped her recover and rebuild following the impact of Typhoon Opong in 2025.

"Iyong pera na ibinigay sa amin, nabili agad namin ng priority at pangangailangan ng pamilya ko. Kung wala akong natanggap, wala akong maaasahang tulong na kung ano pa man," she said. (“The money we received helped us immediately buy the priorities and needs of my family. If it weren’t for the assistance, I wouldn’t have had any help to rely on.”)

Under these programs, eligible assistance can typically provide around PHP 5,000 in emergency support, giving affected borrowers access to critical liquidity that can help address urgent expenses following a calamity.

Since 2019, CashKO’s microinsurance network has reached over 6 million underserved Filipinos. With over 33,000 total claims approved, including more than 16,000 processed in 2025 alone, CashKO presents a proven, scalable model for impact investors and growth-focused financial partners.

For more information, you may visit micro.cashko-insurance.com or ruralnet.ph.

PH Fintech Players Call for Balanced Regulation to Sustain Financial Inclusion and Digital Economy Growth at ASEAN Tech Summit

The country's leading fintech executives urged policymakers to adopt balanced, future-ready regulations that protect consumers while enabling innovation, expanding financial inclusion, and supporting the continued growth of the digital economy.

At a panel during the ASEAN Tech Summit, Barbie Dapul, General Manager for Consumer Business and Chief Operations Officer of G-Xchange (the mobile wallet operator of GCash); Maya Bank President Angelo Madrid; Alliance of Tech Innovators for Nation Lead Convenor Monchito Ibrahim; and Tala Director for External Affairs Arianne Ferrer talked about how regulations play a role in advancing the digital economy. 

"The goal should be a level playing field that will let the financial institutions compete on value, compete on innovation, on better security, and while ensuring also that pricing is fair and reasonable," Dapul explained.

Madrid and Ferrer underscored the need for regulation that supports both consumers and the fintech industry, ensuring protection without stifling innovation.

"Regulation has two jobs. The first is protection: putting in place the safety protocols to make digital transactions safe. The other is enabling the investments the country needs to accelerate its digital economy," Madrid said.

"We need consumer-centric co-regulation that balances financial inclusion goals—greater access, choice, and control to unleash the economic power of the global majority—and a pathway to profitability and sustainability for local and foreign investors," Ferrer added.

Ibrahim, meanwhile, stressed the need for regulations to keep pace with rapid technological advancements. "Technology is moving so fast that our regulatory policy is reactive. We need to re-engineer the process to match our technological revolutions," he said.

Balancing affordability and sustainability

Dapul noted that GCash shares the Bangko Sentral ng Pilipinas's (BSP) vision of expanding financial inclusion and supports the implementation of BSP Circular No. 1238, which encourages financial institutions to reduce fund transfer fees, including offering zero-fee transfers where viable, to accelerate digital payments adoption.

In line with the circular, GCash lowered its transfer fee to P10. Dapul explained that while lower fees make digital services more accessible, maintaining reasonable charges enables fintech companies to continue investing in technology, platform resilience, cybersecurity, and customer protection.

"I think the circular also recognizes that there are costs involved in delivering quality services," she said. "The circular says that pricing needs to be fair. It needs to be reasonable. It didn't necessarily say that it had to be zero."

"Progressive regulation should strike a balance between affordability and sustainability,” she stressed.

Moving fintech sector forward

Dapul added that fintech companies and traditional banks operate under fundamentally different business models. While banks generate revenue from lending and deposit products, fintech firms rely primarily on payment services to fund continuous investments in innovation and digital infrastructure.

"It's really digital payments that enable us to make the investments needed to sustain innovation, build the infrastructure, and continue providing quality services to our customers," she said.

Dapul stressed that sustaining these investments ultimately benefits consumers by allowing fintech companies to continually enhance security, strengthen fraud prevention measures, and deliver more innovative and reliable financial services.

Promoting financial inclusion

E-wallets, Dapul said, help accelerate digital adoption by lowering barriers to financial access, particularly for underserved and unbanked Filipinos.

She explained that GCash continues to make financial services more accessible by simplifying account opening requirements and rolling out initiatives such as National ID registration and electronic know-your-customer (e-KYC) verification, making it easier for more Filipinos to securely onboard and participate in the digital economy.

“We want them to have ease and access to their mobile phones,” she quipped. 

The ASEAN Tech Summit is a two-day event that brought together thousands of industry leaders, policymakers, regulators, and innovators to discuss cross-border digital trade, interoperable payments, artificial intelligence, cybersecurity, data governance, and other key issues shaping ASEAN's digital economy.

Prior to this event, GCash was an official partner of the 48th ASEAN Summit, enabling seamless cashless payments for delegates and participants in Lapu-Lapu City, Cebu—demonstrating how regional collaboration can help build a more connected digital economy.

For more information, please visit www.gcash.com. 

Easy-to-Use GCash Payment Solutions Help Filipino MSMEs Grow Their Businesses

Across the Philippines, micro, small, and medium enterprises (MSMEs)—from online sellers and cafés to neighborhood retail shops—are thriving not only through grit, but also with the help of digital tools that make operations easier and support business growth. Going digital, indeed, is the ideal path for merchants of all sizes as the economy pivots to a cash-lite society.

 

G-Xchange Inc. President and CEO Ren-ren Reyes, in a speaking engagement at the ANT Mo:Ments summit in Kuala Lumpur, Malaysia, stressed that digital tools must not only enable micro, small, and medium enterprises (MSMEs) to access digital payments but also improve the way they run their businesses.

 

GCash for Business is doing so with a suite of next-generation payment systems built to help Filipino merchants move faster, serve more customers, and grow their businesses more efficiently.

 

A seamless and inclusive payment ecosystem

 

For many MSMEs, going digital remains easier said than done. While studies show that 77% of MSMEs are interested in digital tools, only 20% have fully adopted them due to costs and technical skill gaps.

 

GCash for Business is making digitalization more accessible for them. The fintech leader offers easy-to-use payment solutions. These enable tap-to-pay and card transactions, giving merchants a faster and simpler way to accept payments.

 

More than these, merchants can access tools that help automate operations, attract customers through promos, and improve business management. The goal is to help businesses spend less time dealing with manual processes and more time growing their operations.

 

“We are helping merchants transition from manual roadblocks to digital efficiency, transforming everyday payments into engines for growth. With these devices and platforms, we are bridging the connectivity gap and ensuring that every Filipino entrepreneur—regardless of their location—has a seat at the table of the formal economy,” Reyes said.

 

Building a digital track record for financial growth

 

Reyes further highlighted how digital transactions can help merchants build financial credibility.

 

Today, 55% of MSMEs have never applied for a formal loan, often because of fear of debt, high interest rates, and complicated application requirements. Many small business owners still rely on informal borrowing or personal savings, limiting their ability to expand operations, manage cash flow, or recover from unexpected expenses.

 

With GCash for Business, merchants can create a digital track record that may help them access financing options that are faster, fairer, and more inclusive. The lending arm of GCash, Fuse Financing Inc., has disbursed P406 billion worth of loans to 11.1 million unique borrowers to date. One in three borrowers is a small business owner.

 

By helping small businesses overcome barriers to digital adoption, GCash is turning everyday transactions into opportunities for growth, inclusion, and long-term financial progress for merchants across the country.

 

To get started, merchants can sign up via the GCash for Business Portal at business.gcash.com to gain access to affordable payment solutions and an easy to use all in one dashboard.

GCash Lending Arm Fuse Fuels MSME Growth through Accessible, Responsible Credit

One in three borrowers of Fuse Financing Inc., the lending arm of GCash, is a small entrepreneur. The loan proceeds are going to inventory purchases, employee salaries, operational expenses, and funding for expansion, among others. The accessible financing facility has enabled many of them to sustain operations, seize growth opportunities, and build more resilient businesses in their communities.

 

With MSMEs continuing to struggle with access to formal credit, Fuse Financing Inc. has been doing its part to bridge the financing gap by providing fair and convenient loan solutions, knowing that many entrepreneurs still lack the documentary requirements typically required by traditional financial institutions.

 

While financing helps businesses grow, Fuse also recognizes that every loan supports the people behind the enterprise: a parent striving to provide for a family, an entrepreneur pursuing growth, or an individual working toward greater financial stability and opportunity. Through responsible and accessible credit, Fuse seeks to support customers every step of the way.

 

Funding working capital

 

When cash flows are constrained,  additional financing helps address the budget gap. This is the case for Amelyn of Zambales, who is an online food seller.

 

The resident of Botolan said she has used GLoan Negosyo multiple times to supplement capital for her food business. The entrepreneur makes sure that she meets her dues on time consistently to build a good credit standing.

 

"Nakakatuwa dahil kaya [ito] kung consistent ka magbayad, on-time, or advance ka magbayad, talaga andun yung favor. Nagamit ko siya at malaking tulong siya," she said. (What's encouraging is that if you're consistent with your payments — if you pay on time or even ahead of schedule — you really see the benefits. I was able to use it, and it has been a huge help to me.)

 

In addition, she noted that financing products can be a powerful financial tool when used responsibly and for productive purposes, particularly for entrepreneurship and supporting household needs.

 

"Sa GLoan, malaking bagay at malaking tulong — basta magagamit mo lang talaga para sa negosyo, sa tamang paraan, o sa pangkabuhayan para sa pamilya," she added. (Through GLoan, it has made a big difference and has been a tremendous help — as long as you use it for your business, for the right purposes, or to support your family's livelihood.)

 

Fuse Financing has been enabling responsible borrowing for millions of Filipinos by ensuring that pre-approved loan amounts are aligned with borrowers' repayment capacity and ability to manage their obligations sustainably. The platform's fully digital process makes formal credit more accessible,convenient, and fair for Filipinos who may otherwise face barriers to borrowing.

 

This commitment is complemented by financial literacy initiatives that promote the responsible use of credit, highlight the benefits of borrowing for productive and meaningful purposes, and encourage consumers to avoid unnecessary debt.

 

Supporting personal journeys

Fevilyn of Zambales, a food vendor and hog raiser, and Felichi of Pangasinan, an online ukay-ukay seller, are also finding relief with GLoan Negosyo.

 

The food vendor, for one, has borrowed up to P6,000 to help cover her child's school expenses and household obligations such as electricity bills. Having an extra hand with her personal expenses has helped in keeping the business afloat.

 

For Fevilyn, having access to financing provides an important safety net during emergencies and unexpected expenses. At the same time, she emphasized that borrowers must remain disciplined and repay their loans on time to maintain a good standing and continue benefiting from access to credit.

 

Like Fevilyn, Felichi has borrowed multiple times via GLoan Negosyo, with her credit limit growing as she maintained a good payment record.

 

"Makakatulong siya [GLoan] sa pamumuhay — mula sa maliit po, tapos napalaki ko yung negosyo po," Felichi added. (It has helped improve our family's livelihood — I started small, but I was able to grow my business over time.)

 

Expanding access to responsible borrowing

 

The stories of Amelyn, Fevilyn, and Felichi show that access to responsible financing goes beyond providing capital. It creates opportunities for Filipinos to keep businesses running, invest in their families, and navigate life's unexpected challenges with greater confidence.

 

As more entrepreneurs and households seek reliable financial support, Fuse Financing remains committed to expanding access to credit while promoting responsible borrowing and financial literacy.

 

To know more about the loan products, visit gcash.com.

GStocks PH Democratizes Investing as Cebu Energy Firm's Shares Get 10x Demand

Broadening access to investment opportunities for everyday investors, GStocks PH continues to make it easier for Filipinos to invest in share issuances like Initial Public Offerings (IPOs) and Follow-On Offerings (FOOs) all within the GCash app. During the latest preferred share sale by fuel distributor Top Line Business Development Corp. (PSE: TOP), Filipino investors took up nearly ₱15M worth of shares on GStocks PH offered by broker AB Capital Securities, Inc.

 

Engaged in commercial fuel trading, retail fuel distribution, and real estate development, TOP is a Cebu-based energy and property development firm operating primarily in Central Visayas. In its FOO last June 26, it offered two preferred shares—TOPA1 and TOPA2—with fixed annual dividend rates of 9.1325% and 9.5981%, respectively. Both securities offer quarterly dividend payouts and were made available on GStocks PH with a minimum investment of ₱1,000.

Traditionally, FOO subscriptions required investors to apply through a brokerage, purchase non-guaranteed shares, and wait until after the offer period to know whether their orders were successful. GStocks PH addresses these challenges by offering a quick, digital signup on the platform and a simplified subscription experience that takes just minutes. GStocks PH allows users to easily order guaranteed shares during IPOs and FOOs while the broker’s allocation lasts; and once the guaranteed allocation for GCash is fully subscribed, GStocks users can just as easily subscribe to additional non-guaranteed shares, with confirmation provided after the offer period. 

The TOP FOO received strong support from Filipinos, with nearly 150,000 shares subscribed across both securities, more than 1000% oversubscribed compared to the broker’s initial guaranteed allocation for GStocks PH. The strong demand reflects growing investor interest in accessible investment opportunities made possible through a simplified subscription experience.

“Enabling Filipinos to make more informed decisions and giving them the tools they need to easily invest means creating opportunities for them to grow their hard earned money and build their long-term financial stability. Through GStocks PH, we continue to simplify the investment journey so more users can safely and conveniently participate in the Philippine stock market with just a few taps,” said Winsley Bangit, Group Head of New Businesses at Mynt, the parent company of GCash.

GStocks PH allows Filipinos to build their long-term financial health by seamlessly investing in local stocks and participating in share sales, including IPOs and FOOs, directly within the GCash app. Registering on GStocks PH takes just a few taps. To begin stock investing, fully-verified GCash users just need to open the app, go to the “Invest” tab and select “GStocks PH” to sign up and complete the digital KYC. 

By simplifying access to investment opportunities, GCash continues to support more Filipinos in pursuing their financial goals through convenient digital experiences.

For more information, visit https://www.gcash.com.  

Stronger Fraud Prevention, Onboarding Foundations Key to Unlocking PH’s Next MSME Growth Wave: Industry Leaders

MANILA, Philippines — The financial sector must modernize how it verifies, protects, and extends credit to millions of unique micro, small, and medium enterprises (MSMEs) to accelerate financial inclusion across the Philippines, industry leaders urged.

 

At 'The Anatomy of Merchant Trust' executive roundtable co-hosted by IDfy and Mastercard in Manila, executives across banking, fintech, and payments concurred that while consumer adoption of digital payment channels like QR Ph has surged past 57% according to Bangko Sentral ng Pilipinas (BSP) data, traditional merchant infrastructure must evolve to serve the distinct needs of every small vendor, from urban startups to neighborhood sari-sari stores.

 

The discussion highlighted a critical systemic challenge currently holding legitimate businesses back. Because traditional merchant identity verification remains fragmented and unverified at the micro-level, it trickles down to ecosystem-wide trust issues that compel institutions to enforce rigid, blanket risk policies. Consequently, vast numbers of honest, high-potential merchants who simply lack paper credit histories are turned away from the formal digital economy. 

 

Leaders present at the event highlighted the importance of addressing the gap to complement government-led empowerment efforts. Initiatives like the Department of Trade and Industry’s (DTI) “Tindahan Mo, e-Level Up Mo!” have successfully equipped thousands of small merchants with digital literacy and cashless payment tools. Financial sector leaders emphasized that by streamlining merchant onboarding, such as replacing legacy paper checks and physical audits with automated, risk-based verification, banks and fintechs can seamlessly welcome these newly enabled businesses into the fold.

 

Internal industry polling conducted during the session underscored this sentiment, with executives identifying business document verification and compliance checks as the single highest-priority workflow for automation, scoring 4.4 out of 5.

 

Beyond onboarding, attendees noted that safeguarding merchants requires moving from point-in-time checks to continuous protection. By deploying real-time behavioral analytics and continuous fraud monitoring, institutions can defend against threats like document forgery, deepfakes, and post-approval misuse without placing unnecessary friction on legitimate vendors.

 

“Merchant trust is no longer a one-time verification exercise—it is a continuous lifecycle,” said Raghuraman Chandrashekhar, PH Country Head of IDfy. “As digital payments scale across the Philippines, institutions must move away from fragmented onboarding and adopt intelligent, risk-based systems that unify identity verification, alternative data, and real-time monitoring. The future of financial inclusion depends on enabling MSMEs to be onboarded quickly and safely at scale.”

 

To bridge the credit gap for small vendors, financial institutions are increasingly leveraging alternative data, such as digital payment records, utility payments, and transaction footprints. Paired with progressive lending models that scale credit limits as merchants grow, alternative underwriting could unlock formal financing for over one million underserved merchants nationwide.

 

“Merchant trust extends well beyond onboarding. As more businesses participate in the digital economy, the industry needs to strengthen collaboration across banks, payment providers, fintechs, and technology stakeholders,” said Jason Crasto, Mastercard’s Country Manager for the Philippines. “Each stakeholder brings unique capabilities, perspectives, and expertise to the table. Through stronger public-private collaboration, shared intelligence, and advanced risk solutions, we can build a more secure, scalable, and inclusive digital ecosystem that empowers Philippine MSMEs to grow with confidence.”

 

By rebuilding onboarding foundations and adopting continuous risk intelligence, industry leaders agreed that the Philippines can transform strict risk barriers into pathways of opportunity, ensuring every legitimate merchant has the access, security, and capital needed to thrive in the digital economy.

For more information on the roundtable discussion, you may visit www.idfy.ph.