MANILA, Philippines — The digital banking sector has recorded a significant growth in total deposits and loans in 2023 compared to a year ago, as consumers looked for more accessible and user-friendly financial services.
In a statement, the Digital Bank Association of the Philippines (DiBA PH) said the six digital banks operating in the country reported impressive growth last year, outperforming traditional banks in making financial services accessible among most Filipinos.
“Digital banks are changing the game for financial inclusion in the country beyond access. This kind of growth in such a short amount of time is unprecedented in terms of onboarding the unbanked and underserved,” DiBA PH and Maya Bank president Angelo Madrid said.
According to the group, the digital banking sector saw a 27-percent increase in their depositor base in end-December 2023 from a quarter prior. This is higher than the overall banking system’s four-percent growth during the same period.
The digital banking depositor base was recorded at 5.85 million as of end-December 2023, higher than end-September’s 4.61 million, based on data from the Bangko Sentral ng Pilipinas.
As a result, the industry’s deposit base surged by 97.1 percent to P69 billion in 2023 from over P35 billion in 2022, while its loan book more than doubled to nearly P25 billion from P11 billion.
“These milestones were achieved despite considerable infrastructural challenges, including the rollout of the national ID system and limited coverage by the national credit bureau,” DiBA PH said.
The central bank first introduced the digital banking category in 2021 and has approved six digital banks, including GoTyme Bank, Maya Bank, Overseas Filipino Bank, Tonik Bank, UnionDigital Bank and UNO Digital Bank.
BSP Deputy Governor Chuchi Fonacier said the growth of online lenders reflect the continued shift in consumer demands towards accessible, responsive and user-friendly financial services.
“We are pleased with the digital banking sector’s trajectory and its rippling effect towards a larger banking trend of optimizing technology in providing financial services,” Fonacier said.