Use of nonbank online lending apps rising among Filipinos
FILIPINOS spent about 1.54 billion seconds on nonbank digital lending applications in 2024, according to consumer finance company Digido.
Active users spent about 12 minutes and 14 seconds per month on average on these apps, with the average duration per session at 58 seconds, Digido said in a statement.
User activity seen in the apps rose by 16% year on year in 2024, it added.
The company’s analysis covered 47 digital lending applications operating in the Philippines, including Digido.
Broken down, apps specializing in personal loans saw the most activity at 76.4% of the total, followed by those offering buy now, pay later (BNPL) services at 21.4%, and installment loans at 2.2%.
Downloads of online lending apps also surged by 42.4% to 127.69 million units in 2024 from 89.66 million a year prior, with the personal loan segment likewise being the main driver, Digido said.
Unique users jumped by 43% year on year to 67.84 million people, while the number of active users rose by 53% to 11.78 million individuals.
“Nonbank, digital-forward lenders maintain their current market growth rates despite the already high level of fintech (financial technology) penetration and saturation of offerings. Personal loans, in particular, remain a key driver of this industry due to its flexibility, ease of access, and competitive rates,” Digido Business Development Manager Rose Arreco said.
“The growth in downloads, active and unique users, as well as the increase in total time spent in applications indicate continued consumer interest and high demand for such financial instruments while illustrating the industry’s role in promoting financial inclusion and continuing towards increased access to formal credit,” she added.
The Philippine digital lending market is likely to surpass $1 billion (about P56.33 billion) by the second half of the year amid increasing demand for online financial services, Digido earlier said.
This is bigger than its estimate of a $796-million value at end-2024 and the $693 million recorded in 2023. The Philippines’ digital lending market has been growing at an average of 28% or $68 million annually from 2013 to 2023, it added.
Broken down, nonbank digital lenders are expected to make up 55.2% of the market by the second half of this year for a $556.5-million value.
On the other hand, digital banks are seen to have a 44.8% share equivalent to $451 million. — B.M.D. Cruz
