Financial services see massive adoption in the Philippines via GCash
Manila, Philippines, September 28, 2021 / PRNewswire / – With a population of over 100 million people, The Philippines is one of the most economically resilient countries South East Asia in the midst of the pandemic, and among the drivers of this resilience is its transition to digital payments. Consumers and businesses have embraced digital services, while the country’s government has embraced it at different levels. And the company leading this digital revolution is GCash.
Similar to wallets in other Asian countries such as from China Alipay and india PayTM, GCash enables frictionless transactions between its users, whose primary services are money transfers, bill payments, prepaid airtime, and online shopping. However, one of the fastest growing use cases for the GCash app is its range of financial services, spanning credit, savings, insurance, loans, and investments.
Historically, financial services in The Philippines have a high barrier to entry, requiring multiple physical documents to apply, minimum balances, fees, and credit history. Filipinos have found it more convenient to switch to GCash for their financial needs: Thanks to GCash’s smooth app and overall ease of use, many more Filipinos are now banked, insured, have investments, and can easily access to credit.
Financial services grow under GCash
To underline the growth, the assets under management (AUM) of the electronic holding company for its savings product, GSave, exceeded PHP 9 billion, of PHP 5 billion in 2020 – almost double in just 6 months. GCash’s investment platform, GInvest, which was just launched last year with 4 new fund categories, helped GCash immediately capture 70% of the domestic market of total UITF accounts in just 6 month.
GInsure, GCash’s microinsurance offering launched in the app in 2020, now accounts for a third of all new insurance policies issued in The Philippines. It happened in less than a year.
Finally, the company’s internal loan department, GCredit, disburses PHP 1 billion loans per month on average, with PHP 15 billion value disbursed from June 2021. It also offers world-class repayment rates and locally the lowest delinquent and non-performing loans as it is powered by GCash’s in-house trusted platform, GScore. In partnership with CIMB Bank, a neobank, GCredit works as a pre-approved credit card to make QR and online purchases, as well as bill payment, without traditional documentation requirements, and offers 30-day credit to users. by GCash.
GCash also recently launched GLoan, a new service that allows pre-approved GCash users to borrow up to PHP 25,000, with a reimbursement spread over 12 months. The service is doing well and has recorded the fastest revenue growth for its category.
Additionally, GCash is looking to launch a ‘Buy Now, Pay Later’ service in 2021, aimed at addressing the financial challenges faced by its users during the pandemic and beyond.
“We aim to alleviate the friction faced by unbanked and underserved Filipinos through innovative financial services. This leads to greater adoption as Filipinos realize the convenience that fintech brings, letting them know what financial empowerment and inclusiveness really means. With this in mind, we are very confident of greater market saturation in the near future, ”said Marthe Sazon, President and CEO of GCash.
One-third of the app’s monthly active users use at least one of the app’s digital financial services products.
Versatility is the key to financial services adoption
As a mobile wallet, GCash’s versatility lies in its platform approach. This allows the company to partner with other financial institutions to offer their products to its 46 million digitally savvy users, while digital banks are limited to their own services. In addition to the neo-bank CIMB Bank’s partnership with GCash for GSave and GCredit, Cebuana Lhuillier, AXA (via MicroEnsure) and Singaporean insurtech Singlife have also partnered with GCash as insurance providers via GInsure.
“We see GCash as an enabler for Filipinos in general rather than a competition with other existing services. What we have, the versatility as an app and our tens of millions of users, is something that Like-minded institutions and partners can expand access to financial services for Filipinos, ”Sazon added.
According to the latest study from Visa Consumer Payment Attitudes, Filipinos using digital commerce platforms like GCash have helped boost the use of digital payments in the country.
GCash has been advancing the financial services front since the launch of GCredit in 2018. The company continually invests heavily in technology and infrastructure that will meet the financial needs of the Philippines. It developed the country’s first credit rating mechanism called GScore, which is a central part of its financial services qualification process.
The mobile wallet has also been at the forefront of the transformation of financial processes in The Philippinesbecause it maintains a robust end-to-end digital application process that removes physical documents. This is systematically experienced throughout the GCash application.
GCash is the leading mobile wallet in The Philippines. Through the GCash app, customers can easily purchase load; pay invoices to more than 600 partner billers in the app; pay at more than 7,000 online partners; send and receive money anywhere The Philippines; pay using QR codes at more than 130,000 partner merchants across the country; save money while earning interest; and invest money in local and global funds – all the way through the convenience of their smartphones.
GCash is one of the portfolio companies of 917Ventures, the largest business incubator in The Philippines 100% owned by Globe Telecom, Inc. GCash was recognized by The Asian Banker (TAB) in 2021 for its outstanding digital financial inclusion programs that reach over 40 million Filipinos nationwide today.
For more information please contact:
Vice-President, Corporate Communications and Public Affairs
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SOURCE GCash (Mynt – Globe Fintech Innovations, Inc.)