Online loan platform Digido has announced that fintech adoption through mobile apps in the Philippines could reach 79.5% by the second half of 2024.
This means that by the end of this year, there will be 66.4 million unique users aged 15 and over in the country.
read: How to download Facebook videos
Article continues after this ad
The company defines a “unique user” as an individual who has used one of its applications within the past 30 days.
Digido derived its findings from data from the United Nations.
Scope of Fintech Adoption in the Philippines
The fintech platform said this increased adoption was driven by the digital commerce sector, which accounted for 34% of the growth.
Additionally, digital wallets will account for 27.2% of fintech adoption, followed by digital banking at 8.6%.
Article continues after this ad
From September 2018 to June 2024, mobile fintech adoption among adults was 76.2% (63.1 million unique users).
Meanwhile, the cumulative number of downloads of fintech mobile apps in the country reached 617 million. The technologies that contributed to the number of downloads were:
- Digital Commerce: 31.4%
- Digital Wallets: 21.7%
- Online Loans: 20.3%
- Payments and transfers: 11.6%
- Digital personal finance apps: 8%
- Digital Banking: 7%
Looking at absolute figures for the first half of 2024, the digital lending sector saw the highest increase in downloads with 25.4 million. The following sectors also saw increases in downloads:
- Digital Commerce: 13.5 million
- Digital Wallets: 12.2 million
- Online payments and transfers: 7.8 million
- Digital Banking: 6.2 million
- Digital personal finance apps: 4 million
According to Digido, downloads have continued to grow at an average annual rate of 10.2% every six months.
Moreover, the digital segment recorded the highest growth rate in the first half of the year at 22.3%.
The second largest growth was in digital payments and remittances, at 17.7%, followed by digital lending, at 16.8%.
Commenting on the analysis, Rose Areco, Business Development Manager at Digido, said:
“The strong numbers we are seeing in digital lending, digital wallets and digital commerce are due to growing confidence in these areas and their natural synergies with each other.”
“We continue to see strong demand for fintech in the Philippines, along with growing expectations from Filipinos for convenience, interoperability and improved user experience across these applications.”
“As the Philippines continues to move towards widespread digitalization, we believe its 'fintechization' will continue, rather than slow down.”