GCredit, the first mobile, QR-based credit line in the Philippines, extended P1 billion in credit to consumers a year after it was introduced in the country.
With 250,000 credit lines and impressive default rates, GCredit successfully scaled an emerging lending model that is data-driven and fully digital to provide loan solutions to the underserved.
Anthony Thomas, president and chief executive of Mynt (Globe Fintech Innovations) which operates GCredit, said the mobile credit facility promotes Mynt’s vision for financial inclusion by giving people access to credit based on trust instead of the usual tedious documentation.
“GCredit marks the realization of our commitment to lend to every Filipino. I am happy to share that this is exactly what we have done in the past year, and this is what we will continue to do to ensure a more inclusive future for all Filipinos,” Thomas said.
GCredit is a feature within the GCash mobile wallet app that allows people to pay their bills and buy from GCash partner merchants using credit which they can access within the app.
Their credit limit depends on their GScore, the first trust-based score in the country which is built around users’ GCash transactions. The more they use GCash, the higher their GScore and the higher their GScore, the higher their credit limit.
Because GCredit availment is closed-loop―meaning via QR or Pay Bills only―it shows Mynt where customers use their loans, allowing the company to constantly improve the GScore model based on customer insights.
“GCredit was designed so that no one who needs credit would be rejected. Typically, when customers apply for a loan, there’s that anxiety that stems from not knowing whether they will get approved or not. We don’t want that,” Thomas said.
“We want customers to feel that they have earned our trust and they are worthy to get credit,” he said.
Studies show that 90 percent of Filipinos do not have a credit score which means they cannot take out loans from institutions like banks and lending agencies.
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.
“GCredit does not require the submission of any documents because we believe that a piece of paper is not the only way to assess if a person is trustworthy or not,” Thomas said.
“GCredit has helped workers who were in between jobs and families who needed extra money for medicines, which is the point of extending credit. In return, they have been faithful in paying their loans,” he said.
Data show that people used GCredit in these top Gcash partner merchants: Puregold, Robinsons, SM and Waltermart. The top billers are Globe Postpaid, Globe at Home, PLDT, Meralco and Smart.
GCredit became available in the GCash app in March 2018, but it was not until June last year when it could be used to pay bills.
People can avail of credit and pay via the GCash app with a revolving credit line that is replenished every time payment is made. Interest rates are pro-rated, and customers can pay anytime through push payments via the app.
GCredit has made P500 and P200 credit limits available to its users on BETA phase as of June 17, but these will eventually be open to all qualified GCash users.