The adoption rate of financial technology (fintech) in the Philippines is projected to rise significantly, with 79.5% of the population aged 15 and above expected to be using fintech mobile apps by the end of 2024, according to a new analysis by consumer credit service Digido.
This figure represents approximately 66.4 million unique users, highlighting the rapid expansion of digital financial services in the country.
In a statement, Digido indicated that the primary drivers of this growth will be the digital commerce sector, which is forecasted to contribute 34% to the overall adoption rate.
Digital wallets are expected to follow closely, contributing 27.2%, while digital banking is projected to account for 8.6% of the increase.
From September 2018 to June 2024, the adoption rate of fintech services among Filipino adults stood at 76.2%, or about 63.1 million unique users.
During this period, the cumulative number of downloads of fintech mobile applications in the Philippines reached a staggering 617 million.
By sector, digital commerce led with 31.4% of total downloads, followed by digital wallets at 21.7%, and digital lending at 20.3%.
Other sectors included digital payments and transfers, which accounted for 11.6% of downloads, digital personal finance apps at 8%, and digital banking at 7%.
In the first half of 2024, digital lending saw the largest growth in downloads, totaling 25.4 million. Digital commerce followed with 13.5 million downloads, while digital wallets recorded 12.2 million.
Other sectors such as digital payments and transfers, digital banking, and digital personal finance applications garnered 7.8 million, 6.2 million, and 4 million downloads, respectively.
Digido observed that the overall number of downloads is growing at an average rate of 10.26% per half year. Notably, the digital banking sector experienced the highest growth rate in the first half of 2024, with downloads increasing by 22.34%.
This was followed by digital payments and transfers at 17.72% and digital lending at 16.81%.
“The positive numbers seen in digital lending, digital wallets, and digital commerce can be attributed to growing trust in these segments and their natural synergies with one another,” said Rose Arreco, Digido’s business development manager.
Arreco emphasized that as demand for fintech in the Philippines continues to strengthen, so too do Filipinos’ expectations for convenience, interoperability, and an improved user experience across these applications.
She added that the country’s trajectory towards widespread digitalization remains strong, with the “fintech-ization” of the Philippines showing no signs of slowing down.