PSE-GCash tie-up to give millions access to bourse

The Philippine Stock Exchange (PSE) formalized a milestone partnership between GCash, the country’s biggest mobile wallet by users, and stockbrokerage house AB Capital Securities Inc., paving the way for the entry of millions of first-time stock market investors.

The venture, which will be known as “GStocks,” will hold its soft launch by November this year while the “nationwide rollout” was targeted by early 2023, PSE president Ramon Monzon said on Tuesday.

He said the venture will boost stock market participation given that the PSE lags behind regional peers in terms of investor count.

Last year, the bourse reached about 1.6 million participants—less than 1 percent of the Philippine population— thanks to the surge in online trading accounts.

Monzon said the tie-up with GCash, which has about 69 million users, was the next step in this strategy to widen access.

“While online trading has been instrumental for the expansion of investor base, admittedly there is a need for a catalyst to further accelerate this growth momentum,” Monzon said.

“That catalyst, hopefully, will be GCash,” he said.

“This endeavor is a game changer for the Philippine stock market. I say game changer because of its potential to double, triple or even quadruple the stock market’s investor base in a very short period of time,” he added.

Edgardo Layug Jr., head of wealth management at GCash, said during the event that over a million GCash users were ready to invest in the stock market.

Monzon had previously said the partnership was targeting the entry of about nine million new investors in five years—a figure that has been challenged by veteran market observers.

During the event, he said the PSE is developing a customized trading platform for AB Capital that would allow GCash subscribers to directly invest in the stock market.

GCash president and CEO Martha Sazon also explained during the event this can be accessed using their app.

Meanwhile, Monzon reiterated plans to eventually introduce fractional trading, or buying and selling of less than a full share, to widen access and make investing more affordable.

He also said the exchange was aware of the need for greater market education, given the target to lure millions of inexperienced investors.