The Ayala Group’s local fintech venture with Chinese giant Ant Financial announced that its QR-based lending platform reached P1 billion in loans to users armed with nothing more than a digital trust score.
Mynt (Globe Fintech Innovations)—the company that operates the GCash mobile wallet—said its GCredit platform also had 250,000 credit lines and low default rates a year since its launch.
GCredit is a feature in the GCash app that allows users to pay bills or buy goods from partner merchants.
Borrowing limit is determined by a so-called GScore, a novel trust-based system that tracks a user’s transactions within the app. For example, more GCash purchases mean a better GScore and a higher credit limit.
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The platform aims to close a huge gap in the country’s financial system given that most Filipinos do not have access to traditional credit or banking services.
“GCredit was developed to address the social pain points in accessing loans, which are the lack of documents required by institutions, high interest rates from loan sharks, and the shame associated with borrowing money from family and friends,” Mynt said in a statement.
