Filipinos’ reliance on digital financial services intensified in 2023, with users spending a cumulative 1.3 billion seconds, or 42 years, on digital lending applications, marking a 37-percent surge from the previous year, a report by consumer credit service Digido revealed.
According to the study, personal loan platforms absorbed 63.4 percent of the total time spent, while point-of-sale and secured loans accounted for 17.5 percent, and buy now, pay later services 16.6 percent. Installment loans drew the least attention at just 2.5 percent.
On average, each user spent about 14 minutes and seven seconds per month on these apps, with individual sessions lasting approximately 54 seconds.
The report also noted a significant increase in the adoption of these services, with app downloads climbing 52 percent to 89.66 million. The number of unique users rose by 64 percent to 47.46 million, and active users increased by 25 percent to 7.7 million compared to last year.
Rose Arreco, Business Development Manager at Digido, highlighted the essential role of these platforms in providing accessible financial services, especially to the underserved segments of the population.
“Duly-registered digital lending applications are increasingly recognized as trusted financial partners, particularly for those in need of formal credit,” Arreco said.
She added that the rise in digital lending is particularly significant among Filipinos with limited access to traditional financial channels, spurred by the current macroeconomic challenges and a growing demand for flexible credit options.
Digido, which was included among the 70 digital lending apps licensed in the Philippines, expects the interest in digital lending to remain robust, fueled by ongoing collaborations within the fintech sector aimed at enhancing service accessibility.