GCash: wallet data fueled 43% loan surge, kept defaults in check

Insider Spotlight

• GCash is using customers' payment histories, remittances and spending behavior to detect potential loan repayment problems before they materialize.
• Its P79.3-billion loan portfolio grew 43.3 percent while its nonperforming loan ratio improved to 4.8 percent.
• With only 7.8 million borrowers among 42.1 million monthly active users, GCash sees substantial room to expand lending.

GCash is preparing to further expand its lending operations by leveraging the extensive transaction data generated by millions of wallet users to identify creditworthy borrowers while keeping loan defaults under control.

The CEO of the mobile wallet’s Fuse Financing unit Tony Isidro said the fintech platform's ability to monitor customer behavior provides an advantage in assessing credit risks, particularly as inflation and slower economic growth put pressure on household finances.

Speaking to analysts during Mynt's third-quarter earnings briefing on Tuesday, Nov. 10, 2026, Isidro said GCash monitors delayed bill payments, declining remittance inflows and changes in wallet spending patterns to detect potential deterioration in borrowers' financial condition.

Real-time credit monitoring

These indicators allow GCash to adjust individual credit limits, lending terms and underwriting policies before repayment problems become serious.

The company also monitors portfolio quality practically in real time, enabling it to expand credit to financially stable customers while reducing exposure to those showing signs of difficulty.

Isidro said "our default rate has been manageable" despite challenging economic conditions.

GCash's nonperforming loan ratio improved to 4.8 percent at end-September from 4.9 percent in the preceding quarter, even as its loan portfolio expanded 43.3 percent to P79.3 billion.

Room for further expansion

GCash currently has 7.8 million active borrowers, representing just 18.6 percent of its 42.1 million monthly active wallet users.

Isidro said this provides considerable opportunities to expand lending, particularly with an estimated 40 percent of Filipino adults still relying on informal credit.

Existing borrowers with demonstrated repayment discipline are also receiving higher credit limits, longer repayment periods and potentially lower interest rates.

Loan disbursements reached P49.5 billion in the third quarter, increasing 34.6 percent year-on-year.

Higher defaults anticipated

Isidro acknowledged that GCash's nonperforming loan ratio could increase over the coming quarters as the company extends credit to new borrowers.

Management considers the current 4.8-percent ratio near the lower end of its acceptable range and is prepared to tolerate some deterioration to support financial inclusion.

The objective, he said, is to balance loan growth, profitability and asset quality rather than minimize defaults at the expense of lending opportunities.

GCash believes its transaction data will allow it to manage that trade-off as lending becomes an increasingly important source of growth.

— Edited by Daxim L. Lucas