Financial technology (fintech) adoption through mobile applications is likely to reach 80 percent or about 65 million users by the end of this year, an analysis from consumer credit service Digido showed.
Approximately 79.5 percent of Filipinos ages 15 and older — about 66.4 million people — are expected to use fintech through mobile apps.
The growth is expected to be driven mainly by digital commerce, contributing 34 percent, followed by digital wallets at 27.2 percent and digital banking at 8.6 percent.
"The positive numbers seen in digital lending, digital wallets and digital commerce can be attributed to growing trust in these segments and its natural synergies with one another," Digido Business Development Manager Rose Arreco said.
"As strong demand for fintech in the Philippines continues, so too Filipinos' expectations on convenience, interoperability and improved user experience across these applications," Arreco added.
Digido reported that 76.2 percent of Filipino adults (63.1 million users) adopted fintech services through mobile apps from September 2018 to June 2024, with fintech app downloads totaling 617 million.
Digital commerce led with 31.4 percent of downloads, followed by digital wallets at 21.7 percent, and digital lending at 20.3 percent. The remaining downloads were for digital payments and transfers (11.6 percent), digital personal finance apps (8 percent), and digital banking (7 percent).
In the first half of 2024, Digido found that digital lending saw the highest growth with 25.4 million downloads, followed by digital commerce at 13.5 million, and digital wallets at 12.2 million.
Digital payments and transfers, digital banking, and digital personal finance apps had 7.8 million, 6.2 million, and 4 million downloads, respectively.
Digido noted that, on average, downloads grow at about 10.26 percent every six months.
In the first half of 2024, digital banking saw the highest growth at 22.34 percent, followed by digital payments and transfers at 17.72 percent, and digital lending at 16.81 percent.
"We believe that the Philippines remains on course towards widespread digitalization, with its 'fintech-ization' far from weakening," Arreco said.
"Collaboration within and outside of the industry remains paramount for this growth to be realized at a faster rate," she added.
Source: Manila Times
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