CEBU, Philippines — The digital lending market in the Philippines — composed of duly registered non-bank digital lenders and digital banks — is projected to exceed USD 1 billion in the second half of 2025.
This growth is expected to accelerate due to the increasing demand for online technologies among consumers.
An analysis released by Digido revealed that, in terms of market structure, non-bank digital lenders are anticipated to account for 55.2 percent (USD 556.5 million) of the market during this period, while digital banks will contribute 44.8percent (USD 451 million).
Non-bank digital lenders refer to financing and lending companies, including their online lending platforms, as registered with the Securities and Exchange Commission (SEC).
Currently, six digital banks in the Philippines hold licenses to operate, as granted by the Bangko Sentral ng Pilipinas (BSP).
The forecasted billion-dollar market size represents a significant increase compared to the USD 796 million expected by the end of 2024 and the USD 693 million recorded in 2023.
In the first ten months of 2024, both non-bank digital lenders and digital banks collectively generated 58.9 million app downloads. If this trend continues, Digido estimates that the total number of downloads for 2024 will reach approximately 73.5 million — a 56.4 percent increase compared to 2023.
Between 2013 and 2023, the Philippines’ digital lending market grew at an average annual rate of 28 percent, equivalent to US$68 million per year.
“Our latest findings affirm the growing reliance of Filipinos on digital sources of credit as a key component of their [personal] finance management,” said Rose Arreco, Digido’s business development manager.
“We are optimistic that these lending segments will sustain high growth rates, driven by their accessibility to the financially underserved, progressive government support, and various initiatives promoting further digitalization,” noted Arreco.
Arreco further emphasized that the growth trend is significantly influenced by the country’s demographic profile.
“A third of the Philippine population belongs to Generation Z — a segment ready to fully embrace innovative solutions in financial technologies, particularly mobile applications,” she added.
The services offered on the Digido platform are financed by Digido Finance Corp., which operates under SEC Registration No. 202003056 and Certificate of Authority No. 1272.