The digital lending market in the Philippines, which includes registered non-bank digital lenders and digital banks, is projected to surpass $1 billion by the second half of 2025, according to a new analysis by Digido.
The growth reflects strong consumer demand for online financial services and the rapid digitalization of the financial sector.
Non-bank digital lenders are expected to account for 55.2% of the market, or $556.5 million, while digital banks will contribute 44.8%, or $451 million.
This anticipated market size is a significant jump from the $796 million forecasted by the end of 2024 and the $693 million recorded in 2023.
The adoption of digital lending platforms is accelerating. During the first ten months of 2024, both non-bank digital lenders and digital banks recorded 58.9 million app downloads.
By year-end, Digido estimates downloads will reach approximately 73.5 million, a 56.4% increase from 2023. The surge highlights the growing reliance on digital technologies for financial solutions among Filipinos.
Over the past decade, the country’s digital lending market has grown at an average annual rate of 28%, or $68 million per year.
The expansion is driven by greater accessibility for financially underserved populations, supportive government policies, and initiatives promoting digital transformation.
The sector’s growth is also underpinned by favorable demographics. Generation Z, which represents about one-third of the Philippine population, is particularly receptive to mobile financial technologies, creating a strong demand for innovative lending solutions.
Regulatory oversight from the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) has provided a stable environment for growth, fostering innovation while ensuring consumer protection.
Digido’s services, financed by Digido Finance Corp., operate under strict regulatory compliance.
With rising adoption rates, robust demographic support, and progressive policies, the Philippines’ digital lending market is positioned for sustained growth.
The milestone reflects its transformative role in improving financial inclusion and shaping the country’s economic landscape.