Pinoys spending more time on lending apps

MANILA, Philippines — Filipinos spent about 1.3 billion seconds – equivalent to 42 years – using digital lending applications in 2023, with financial tools and credit services becoming more accessible to consumers, according to a study conducted by consumer credit service Digido.

Digido said the average user of digital lending apps spent around 14 minutes and seven seconds per month in 2023 while the average duration of a user’s session was 54 seconds.

Around 63.4 percent of that time was spent on platforms offering personal loans, followed by “point-of-sale” and secured loans at 17.5 percent, “buy now, pay later” (BNPL) services at 16.6 percent and installment loans at 2.5 percent.

The analysis included 70 online lending applications that are duly-registered to operate in the Philippines, including Digido.

“Duly-registered digital lending applications continue to be viewed as trusted financial partners for persons in need of accessible formal credit, especially the underserved market,” Digido business development manager Rose Arreco said.

“The increased use of apps offering personal loans also affirm Filipinos’ growing preference for digital channels and flexibility when utilizing credit,” she said.

The study also showed that user activity in all 70 apps rose by 37 percent in 2023 compared to 2022.

The number of downloads for online lending apps stood at 89.66 million units in 2023, 52 percent higher than a year ago.

Unique users surged by 64 percent to 47.46 million in 2023, while active users jumped by 25 percent to 7.7 million from the same comparative period a year before.

Digido said interest in digital lending would continue to remain very high and stable amid further collaboration within the fintech industry to make its products and services even more accessible.

“The high percentage of Filipinos with limited access to traditional financial services, combined with the growing demand for formal credit options in the current macroeconomic context, led to more consumers turning to various lending options, especially ones offering personal loans,” Arreco said.

“Such platforms are reaching more low-income segments of the population through new technologies or partnerships with banks,” she added.

Digido earlier said personal loans were the most popular formal credit option, with 54 percent of survey respondents having one in 2023 due to its flexibility and variety of use.

Meanwhile, BNPL was the second most popular type of formal loan at 12 percent last year.