While most tech companies are taking a softly-softly approach to generative artificial intelligence (GenAI), GCash, the Philippines’ largest fintech unicorn, has gone all in.
GCash says it recognizes AI as an important tool to further bolster financial inclusion in the country. “GCash is more than a financial tool – it’s a catalyst for empowerment,” Ren-Ren Reyes, G-Xchange president and chief executive officer, says at the recently concluded Philippine Tech Summit. G-Xchange is responsible for all mobile wallet operations of GCash, which itself has evolved from being a simple payments app to a full-fledged superapp, with investing, loans and insurance capabilities.
GCash is owned by Mynt, a joint venture between telecom giant Globe, China-based Alibaba’s Ant Group, and Philippine conglomerate Ayala Corporation.
In August, Mynt more than doubled its valuation to US$5 billion, following strategic investments from Mitsubishi UFJ Financial Group (MUFG) and Ayala Corporation.
During the summit, Reyes highlighted several major areas where AI is currently being used within the GCash ecosystem, foremost of which is in credit scoring. Through GScore, GCash uses AI to evaluate existing users' creditworthiness based on their activity within the app.
In a country where over 44% of the bankable population remains unbanked as of 2023, a solution like GScore helps those who fall through the net of traditional lenders access services such as loans that would otherwise be out of their reach.
“AI-powered credit scoring opens more opportunities for GCash customers,” Reyes says.
Interactive solution
The company is also piloting GCoach, an AI-powered tool that provides personalized financial guidance. The new tool, which is also embedded in the app, analyzes users' spending and saving habits. It is envisioned to be an ”interactive solution that users can turn to for money-related tips and advice, enabling them to take control of their financial future”, Reyes says.
GCash has also introduced two new AI-powered chatbots – GIGI, a 24/7 interactive customer service agent, and GINA, a lending collections assistant. The apps streamline customer support, handling common inquiries and allowing human staff to focus on more complex tasks.
However, GCash acknowledges that with new technology comes new risks, which is why the fintech unicorn has stepped up security measures, also with the help of AI.
Through “Scam Score”, an AI-based tool, GCash can assess the likelihood of certain accounts being involved in scams. It does this by analyzing the know-your-customer (KYC) attributes and behavioural patterns of users, hoping that studying such data can help prevent bad actors from committing fraudulent activities.
Reyes says GCash is committed to using AI “for good”. “We have drafted an AI Ethics Charter, launched a GCash-wide Good Data for Good series, and conducted moral imagination workshops for our employees. We are committed to creating a positive and sustainable impact on our users,” he says, adding that GCash has also developed its own Responsible AI and Ethics Principles to guide its decision-making process.
With these new GenAI-powered solutions and safeguards, Reyes is optimistic that GCash will be a catalyst for wider financial inclusion and education in the Philippines.
“GCash is not just a financial service provider; it’s a driver of change and innovation. Our AI-driven solutions are not only enhancing financial inclusion but also fostering a more secure and prosperous future for all Filipinos,” he says.
