Adoption of fintech services through mobile apps will exceed 72% in the Philippines by the end of 2023
According to a recent report from Digido, a consumer credit service, the number of individuals in the Philippines aged 15 years old and above who use mobile apps for financial technology is projected to reach approximately 59.3 million users, accounting for about 72.2% of the population by the conclusion of 2023.
It is predicted that the Payments & Transfers sector will experience the highest level of growth in this area (+17.6%), with E-Wallets following closely behind (+4.9%). Digital Banking is also anticipated to see a positive growth rate of (+4.3%), followed by Digital Investments (+3.7%) and Digital Lending (+0.9%).
In the previous year, the proportion of people aged 15 and above in the Philippines who embraced fintech services rose from 64.4% in 2021 to 69.3%. Like in the entire region, the e-commerce industry had the greatest impact, with nearly 100% of adults in the country adopting it by the end of 2022.
Out of the 867 fintech applications currently being used in the Philippines, the Digital Banking and E-Wallets categories are the most preferred, accounting for 163 (18.8%) and 134 (15.5%) applications respectively. Following closely behind is the Payments & Transfers category with 104 (11.9%) applications, followed by Wealth Management with 86 (9.9%) applications and Digital Lending with 84 (9.6%) applications.
The portion of the blog that focuses on Payments & Transfers experienced the most significant increase in downloads, with a growth rate of 11.3% each month spanning from 2018 to 2022. Close behind were Business Management, which saw a growth rate of 10.7%, and Financial Advisors, with a growth rate of 8.4%.
When looking at the increase in the number of users over the past five years, the primary factors driving the progress of the fintech sector in the Philippines are electronic wallets (with a growth of 1026%), digital lending (experiencing a 330% increase), and electronic commerce (showing a significant growth of 222%).
According to the results of our report, the growing trend of the population adopting fintech is getting stronger. The fintech infrastructure in the country is also showing great flexibility in adapting to new challenges, thanks to a large domestic market and support from the government," stated Farit Shakirov, country manager at Digido. "Currently, there is still room for the fintech industry to continue its progress and develop a more dynamic ecosystem by earning trust through providing smooth and effective user experiences and fostering fruitful partnerships."
