GCash says using AI for credit scores; P155 billion in loans given since 2021 | ABS-CBN

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GCash says using AI for credit scores; P155 billion in loans given since 2021

GCash says using AI for credit scores; P155 billion in loans given since 2021

Benise Balaoing,

ABS-CBN News

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Updated Dec 19, 2024 01:15 PM PHT

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MANILA -- GCash said it has released P155 billion in loans to Filipinos since it launched its credit feature in 2021. The Ayala-led fintech also said it is now using artificial intelligence (AI) to give credit scores to and collect payments from its clients.

GCash said its scoring technology analyzes users’ transaction history within the app and creates a personalized trust score based on millions of past transactions.

In a statement, the fintech giant said it has given out loans to 5.4 million Filipinos, including small business owners.

GCash, through its lending arm Fuse Lending, said it is offering Filipinos a variety of loan products like GLoan, which allows customers to borrow any amount from P1,000 to P125,000; and GLoan Sakto, which lends users any amount from P100 to P300 to pay for minor and urgent purchases such as bills groceries.

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It also has GCredit, a pre-approved credit line of up to P50,000; and GGives, which gives clients flexible installment plans for groceries, bills, and appliances, allowing them to pay over up to 24 months.

GCash also uses an auto-debit arrangement to help customers avoid non-payment or unintentionally incurring late penalty charges and additional fees. The firm also said it is using a human-like conversational Voice AI or VoiceBot called Gina, which allows the collection team to call more clients and help them catch up on missed payments.

The fintech company noted that unequal access to credit hinders greater financial inclusion in the Philippines.

"Loan approval from traditional banks and financial institutions requires credit history, collateral, and income verification, leaving Filipinos from the lower socio-economic classes unqualified. Many also shy away from the loan application process due to lengthy procedures and excessive paperwork," it said.

It also added that these challenges push Filipinos to borrow money from informal lenders who charge high interest rates.

"By using AI to assess the user’s eligibility and streamline collections, we’re able to offer a more ethical and efficient lending experience and better serve millions of Filipinos," said Fuse Lending president and chief executive officer Tony Isidro.

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