, Philippines
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How GCash’s credit and insurance tools unlock Philippines' inclusion barriers

Bank access increased to 65%, whilst insurance penetration improved to 1.71%.

One of the Philippines' major digital payment applications, GCash, has a mission to ramp up financial inclusion in the country, where only a quarter of the population owns bank accounts.

Ingrid Beroña, chief risk officer at GCash, said the company aims to break down financial barriers and create a “future where every Filipino has access to financial services”.

Before the pandemic, only 29% of Filipinos had bank accounts, and a mere 2% had access to credit.

“Now, access to banks is at 65%. Filipinos have more access to credit, about 8%, up from 2%, and 51% now have access to insurance compared to 23% before,” Beroña told the 286 attendees at the Asian Banking & Finance and Insurance Asia Summit, held on 1 October at the Makati Shangri-La, Philippines.

Expanding financial access across the nation

From everyday payments and transfers to insurance and lending, GCash has become a one-stop solution.

As Beroña pointed out, “We don't believe in one-size-fits-all; we believe in solutions that adapt to each person's needs and priorities.” GCash users can now easily access GCredit, GLoan, GInvest, and even insurance products through the app.

One of the platform’s unique offerings is GScore, a proprietary credit scoring system that assesses users' financial potential rather than relying on traditional collateral.

This system has been particularly beneficial for those who previously had no access to credit, enabling them to borrow without the usual bureaucratic hurdles. “You don’t need to submit or fill out anything; you can just borrow instantly,” said Beroña.

In addition to serving individuals, GCash’s way of supporting micro, small, and medium enterprises (MSMEs) is through GCash for Business. Additionally, GLife, a mini marketplace within the app, allows merchants to showcase their products to millions of users, boosting their visibility and sales.

Democratising insurance

In the insurance landscape, GCash also aims to improve the 1.71% insurance penetration rate, albeit better than the 1.63% in 2023.

The company’s GInsure product offers affordable insurance plans, with premiums starting as low as ₱30 per month. “We are breaking the misconception that insurance is only for the wealthy,” Beroña said.

GCash’s insurance has reached over 7.8 million subscribed users. The company’s recent insurance innovations include three new products launched in 2024: Send Money Protect, Cash for Funeral Costs, and Smart Flight Delay, which have quickly become top sellers.

Outlook

Addressing concerns about cyber crimes related to the platform, Beroña reassured users that GCash takes cybersecurity seriously.

“We have spearheaded several security measures like facial recognition during login and a one-device-per-account rule to prevent unauthorised access,” she explained.

Looking ahead, GCash is exploring new investment options, including bonds, to further expand its offerings. Whilst challenges like verification delays persist, the company said it is committed to improving its processes and delivering better user experiences.

“This is not just progress; it’s a revolution in how Filipinos engage with finance, and it’s only the beginning,” concluded Beroña.

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