Consumer credit service Digido predicted that the adoption rate of financial technology in the Philippines among the population aged 15 years old and over through mobile apps would reach 72.2 percent or 59.3 million users by end-2023.
“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.
Digido said in a report the maximum growth of the indicator is expected to come from payments and transfers segment (+17.6 percent), followed by e-wallets (+4.9 percent), digital banking (+4.3 percent), digital investments (+3.7 percent) and digital lending (+0.9 percent).
The adoption rate of fintech services in the country climbed to 69.3 percent in 2022 from 64.4 percent in 2021. Similar to the region as a whole, the largest contributor is the e-commerce sector, with adoption among adults close to 100 percent in the Philippines at the end of 2022.
Digido said 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 percent) and 134 (15.5 percent), respectively, followed by payments and transfers with 104 (11.9 percent), wealth management with 86 (9.9 percent) and digital lending with 84 (9.6 percent).
The payments and transfers segment posted the highest download growth rate at 11.3 percent per month from 2018 to 2022, followed by business management (10.7 percent) and financial advisors (8.4 percent).
The main contributors to user growth in the past five years were e-wallets (+1026 percent), digital lending (+330 percent) and e-commerce (+222 percent).
“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,” said Shakirov.
Digido said every hard-working Filipino should have access to convenient and secure financial tools. With a growing line of inclusive lending solutions through its mobile app and official website, Digido offers 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.
It received 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.