Consumers in the Philippines are demanding so much from online technologies, that research from Digido, the Filipino online lender, has found the digital lending market could reach $1billion in the second half of 2025.
The lending market, which consists of duly registered non-bank digital lenders and digital banks, is set to see much larger growth than previous years. By the end of 2024, the lending market size was estimated to be $796million, while $693million tallied in 2023. Digido revealed that in terms of market structure, non-bank digital lenders are expected to make up 55.2 per cent or $556.5million during that timeframe while digital banks make up 44.8 per cent or $451million.
During the ten months of 2024, both non-bank digital lenders and digital banks generated 58.9 million app downloads. According to Digido, should dynamics improve or maintain, the total number of downloads for both non-bank digital lenders and digital banks may have reached approximately 73.5 million in 2024, 56.4 per cent more than tallied in 2023.
From 2013 to 2023, the Philippines’ digital lending market has been growing at an average of 28 per cent (or $68million) per year.
Commenting on the findings, Digido business development manager Rose Arreco said: “Our latest findings affirm the majority of Filipinos’ growing pivot towards digital sources of credit as part of their personal finance management. We are optimistic that these lending segments will be able to maintain their high growth rates in view of its accessibility for the financially underserved, progressive government support and various projects promoting further digitalisation.
“This growth trend is also largely determined by the fact that a third of the country’s population is from Generation Z — a segment certainly ready to fully accept innovative solutions in the field of financial technologies for mobile applications.”
