January 8, 2025 | 12:00am
MANILA, Philippines — The country’s digital lending market is seen to be worth over $1 billion this year, driven by the high demand for online technologies from consumers.
According to a recent analysis by Digido, the country’s digital lending market, which consists of duly registered non-bank digital lenders and digital banks, is forecast to breach the $1-billion mark in the second half of 2025.
In terms of market structure, non-bank digital lenders are expected to make up 55.2 percent of the projected value or $556.5 million during that timeframe, while digital banks will corner 44.8 percent or $451 million.
Digido said the forecasted billion-dollar market size is considerably higher than the $796 million expected by end-2024 and the $693 million tallied in 2023.
It added that in the 10 months of 2024, both non-bank digital lenders and digital banks generated 58.9 million app downloads.
“Should dynamics improve or maintain, Digido expects the total number of downloads for both non-bank digital lenders and digital banks to have reached approximately 73.5 million in 2024, 56.4 percent more than tallied in 2023,” Digido said.
Digital banks pertain to those licensed by the Bangko Sentral ng Pilipinas (BSP), while non-bank digital lenders refer to the financing and lending companies and their online lending platforms as recorded with the Securities and Exchange Commission (SEC).
From 2013 to 2023, the Philippines’ digital lending market has been growing at an average of 28 percent or $68 million per year.
“Our latest findings affirm the majority of Filipinos’ growing pivot toward digital sources of credit as part of their personal finance management. We are optimistic that these lending segments will be able to maintain their high growth rates in view of its accessibility for the financially underserved, progressive government support and various projects promoting further digitalization,” Digido business development manager Rose Arreco said.
“This growth trend is also largely determined by the fact that a third of the country’s population is from Generation Z — a segment certainly ready to fully accept innovative solutions in the field of financial technologies for mobile applications,” she said.
Digido offers instant and transparent financing for the underbanked and underserved consumers of the country through its mobile app and website aimed at helping them immediately participate in the formal digital ecosystem.
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