The adoption rate of financial technology in the Philippines among the population aged 15 years old and over through mobile apps may increase to 72.2% or 59.3 million users by the end of 2023, according to a new report from consumer credit service Digido.
The maximum growth of this indicator is expected to come from the Payments & Transfers segment (+17.6%), followed by E-Wallets (+4.9%), Digital Banking (+4.3%), Digital Investments (+3.7%) and Digital Lending (+0.9%).
Last year, the adoption rate of fintech services among the population aged 15 years old and over in the Philippines reached 69.3% from 64.4% in 2021. Similar to the region as a whole, the largest contributor is the e-commerce sector, with adoption among adults close to 100% in the Philippines at the end of 2022.
Of the 867 actively used fintech applications in the Philippines, the Digital Banking and E-Wallets segments are the most popular — with 163 (18.8%) and 134 (15.5%), respectively, followed by Payments & Transfers with 104 (11.9%), Wealth Management with 86 (9.9%) and Digital Lending with 84 (9.6%).
The Payments & Transfers segment exhibited the highest download growth rate at 11.3% per month from 2018 to 2022, followed by Business Management (10.7%) and Financial Advisors (8.4%).
In terms of user growth in the past five years, main contributors to the development of the fintech industry in the Philippines are E-Wallets (+1026%), Digital Lending (+330%) and E-commerce (+222%).
“The findings from our report indicate that the inertial movements towards the “fintechization” of the population is going from strength to strength. The country’s fintech infrastructure is also showing high adaptability to ever-emerging challenges, mainly due to a large domestic market and progressive government support,” Digido country manager Farit Shakirov said. “As it stands, there remains opportunity for the fintech industry to maintain momentum and build towards a more vibrant ecosystem by cultivating further trust in their services by providing seamless, communicable user experiences and fruitful collaborations.”
About Digido
Digido believes every hard-working Filipino should have access to convenient and secure financial tools.
With a growing line of inclusive lending solutions through our mobile app and official website, we at Digido offer instant and transparent financing for the underbanked and underserved consumers of the country, helping them immediately participate in the formal digital ecosystem, strengthen their financial well-being and reach their personal goals faster and easier.
Robotic technologies are at the heart of Digido’s services, with applications, credit scoring and disbursement of funds fully automatic and available every single day.
Services under the Digido platform are financed by Digido Finance Corp. with SEC Registration No. 202003056 and Certificate of Authority No. 1272.
Digido was recognized with the “Best New Online Lending Services Philippines 2023” award from Global Banking & Finance Review and the “Best Loan App Philippines 2023” award from Global Financial Market Review. It was also named ‘Most Innovative Online Lending Platform’ and ‘Fastest Growing Loan App’ in the Philippines at the 2023 International Finance Awards.
