By Hans Doringo
As the Philippines moves towards digital finance, GCash, the country’s leading mobile wallet, reports its growth and milestones over the past six months, revealing the massive adoption it experienced amid the pandemic. In the report, the company shows steady growth as it now offers innovative financial services and plans to launch more in the upcoming months.
According to Martha Sazon, President and CEO of GCash, the Assets Under Management (AUM) of the firm’s digital savings bank GSave has doubled from PHP 5 billion in 2020, to over PHP 9 billion in just six months. Moreover, with 4 new fund categories, GCash’s investment platform GInvest has helped the company to capture 70% domestic market of total UITF accounts, immediately after its launch last year.
With its vision to secure financial inclusion for all, the fintech firm has introduced innovative financial services, namely, GSave, GInvest, GInsure, GCredit, GScore, GLoan, and the upcoming “Buy Now, Pay Later” service, to give more sectors in the society, including the unbanked and underserved Filipinos, access to financial security, said Sazon.
“This leads to greater adoption, as Filipinos realize the convenience brought about by fintech, making them experience what financial empowerment and inclusivity truly means. With this in mind, we are highly confident of more market saturation in the near future,” she added.
In addition, GInsure, the e-wallet’s microinsurance offering launched in-app in 2020, now accounts for a third of all new insurance policies issued in the Philippines
On top of that, GCash’s in-house lending service GCredit, disburses PHP 1 billion worth of loans a month on average, with PHP 15 billion worth disbursed as of June 2021. Powered by the company’s in-house Trust Platform GScore, GCash was able to showcase its world-class repayment rates, and low past-due and non-performing loans.
GCredit works like a pre-approved credit card that you can use to pay for goods and services in GCash QR-accepting merchants, as well as bills payment, without traditional documentation requirements, and extends 30-day credit to GCash users.
Recently, GCash launched GLoan, a new service where pre-approved GCash users are allowed to borrow as much as PHP 25,000, with repayment spread over 12 months. At an early stage, the service already exhibits excellent performance as it shows the fastest growth in revenue for its category.
Expanding its network
To experience further adoption of its financial services, GCash has pursued collaborations with various financial institutions and cash-in partners, providing its growing 46 million users a better experience while using the app. Compared to the traditional digital banks, partnerships were made easy due to GCash’s versatility that lies within its platform approach.
In April, GCredit has worked together with CIMB Bank, a long-term partner of GCash since its collaboration with GSave in 2019. Apart from that, Cebuana Lhuillier, AXA (through MicroEnsure), and Singaporean insurtech Singlife, have likewise partnered with GCash as insurance providers through GInsure.
“We view GCash as an enabler to Filipinos in general rather than competition to other existing services. What we have, versatility as an app, and our tens of millions of users, are something like-minded institutions and partners can take advantage of to further widen the access of financial services to Filipinos,” said Sazon as GCash ventures into these partnerships.
The fintech firm has also been working with Igloo, a Singapore-based regional insurect firm, to launch the first of its kind online shopping insurance protection. The collaboration hopes to provide security to GCash users when they transact using the e-wallet. (Read more: GCash Partners with Igloo for Online Shopping Protection Insurance)
Earlier this month, GCash also made partnerships with 9 more leading brands expanding its network to 60,000 active cash-in doors, in response to their objective to reach more Filipinos nationwide especially during the pandemic. The collaboration includes ExpressPay, DA5, Panalo Express, SouthStar Drug, Robinsons Supermarket, Shopwise, The Marketplace, Robinsons Easymart, and No Brand. (Read more: GCash Increases Cash-in Partners)
As previously reported, GCash has also announced its future plan to make cryptocurrency and crypto trading available to its users, especially now that crypto trading is becoming more and more prevalent in the country. (Read more: GCash Will Really Add Crypto, Currently in Talks with Potential Partners)
Since the launch of GCredit in 2019, GCash has shown continued improvement in its financial services due to its heavy investment in technology and infrastructure, like the introduction of GScore, the country’s first credit scoring mechanism, which is a core component of its financial services qualification process.
This article is published on BitPinas: GCash Reports Steady Growth, Offers More Financial Services