GCash Blog 2: From Wallet Data Scoring to Loans: How GCash Partnered with Banks to Build Lending at Scale

When GCash first introduced GScore, it marked a turning point in the Philippines’ digital finance ecosystem. For the first time, mobile money transaction data could be transformed into a credit score — providing a foundation for responsible lending. But data alone doesn’t build a lending business. To turn credit insights into real products, GCash needed partners with balance sheet strength and regulatory expertise: the banks.

This blog explores how GCash built those partnerships, the operational flows that made them work, and the challenges overcome in aligning fintech agility with banking discipline.

The Genesis of Partnerships

GCash’s early vision was clear: it could provide unmatched access to customers and data, but it didn’t want to take credit risk onto its own balance sheet. Banks, on the other hand, were eager to expand retail lending but lacked efficient digital channels.

The solution was collaboration. Banks would fund the loans; GCash would source and score the customers. This model de-risked entry for GCash while giving banks a new pipeline of borrowers who had previously been invisible to the financial system.

One of the earliest and most notable collaborations was with CIMB, which had recently entered the Philippines. GCash provided the digital rails and GScore, while CIMB brought regulatory licenses and underwriting capacity. Together, they were able to launch simple, scalable loan products targeted at everyday Filipinos.

Commercial Model: Sharing Value, Sharing Risk

At the heart of the partnership model was a straightforward commercial agreement:

• GCash provided access — customer engagement through the wallet, marketing, onboarding, and ongoing repayment channels.

• Banks provided capital and risk frameworks — funding the loan book, applying regulatory compliance, and absorbing credit risk.

• Revenue share — loan interest and fees were split, with GCash earning commission for origination and servicing.

This alignment of incentives allowed both sides to benefit: banks expanded into a digital-first lending channel, while GCash built a new revenue stream without straining its balance sheet.

Operational Flow: From Application to Disbursement

The customer journey was designed to be seamless within the GCash app, while in the background, a carefully orchestrated flow took place:

1. Application
   Customers applied for credit directly within the GCash wallet. KYC information and transaction history were already captured in the app, reducing friction.

2. Scoring & Decisioning
   GScore, generated from mobile usage and transaction behaviour, was passed to the partner bank. Banks combined GScore with their internal credit policies to make final lending decisions.

3. Disbursement
   Approved funds were credited instantly into the borrower’s GCash wallet, ready to be used for bills, purchases, or transfers.

4. Repayment
   Customers repaid loans directly through their GCash wallet or via linked bank accounts, making repayment simple and visible.

This model eliminated paperwork and branch visits, making credit accessible to millions of Filipinos for the first time.

Challenges Along the Way

As with any innovation, the early partnerships were not without hurdles:

• Regulatory Comfort: Regulators needed reassurance that GScore and digital processes met prudential standards. Banks played a key role in bridging this gap.

• Governance Alignment: GCash and its partner banks had to establish joint credit committees and governance structures to ensure decisions were consistent and transparent.

• Customer Education: Many first-time borrowers needed guidance on repayment discipline. GCash invested heavily in communication and nudges to support good behavior.

• Technical Integration: Sharing data securely and in real time between a fintech app and a bank’s core systems required new technology interfaces and ongoing refinement.

Despite these challenges, the partnerships proved resilient and laid the groundwork for scaling.

Lessons Learned

The GCash-bank partnership story offers valuable lessons for platforms globally:

• Data + Capital = Scalable Lending: Fintechs excel at data and customer engagement, but banks provide the regulatory and balance sheet strength. Together, they create scale.

• Governance is Critical: Formal forums — credit committees, risk reviews, portfolio monitoring dashboards — kept both sides aligned.

• Iterative Product Development: The partnerships didn’t start with complex loan products. They began with simple, short-tenor loans and gradually evolved.

• Customer Trust is Earned: Transparent communication and easy repayment options built trust in both the product and the partnership.

A Foundation for Growth

Today, lending is one of GCash’s fastest-growing revenue lines. By building partnerships with banks on a foundation of data science and governance, GCash transformed from a payments platform into a digital finance powerhouse.

The success of these partnerships demonstrates how fintechs and banks, once seen as competitors, can co-create new models that expand financial access while managing risk.

As we saw in Part 1 of this series, GScore provided the data foundation. Partnerships with banks were the next critical building block. In the final blog of this series, we’ll explore how GCash structured funding for its loan book — turning a pilot into a scalable, sustainable business.