Data collected from various registered online lending apps in the country revealed a staggering statistic-Filipinos spent a cumulative 42 years, or nearly 1.3 billion seconds, on digital lending applications in 2023. This significant figure underscores the convenience and accessibility of these platforms.
Consumer credit service Digido analyzed data from 70 digital lending applications duly registered in the country. The results showed that 63.4% of that time was spent on platforms offering personal loans, followed by ‘point-of-sale’ and secured loans at 17.5%, ‘buy now, pay later’ (BNPL) services at 16.6%, and installment loans at 2.5%.
“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. Such platforms are reaching more low-income segments of the population through new technologies or partnerships with banks,” Digido business development manager Rose Arreco said.
In 2023, the average user of digital lending apps spent approximately 14 minutes and seven seconds per month, and the average duration of a user’s session was 54 seconds.
The total number of downloads of digital lending apps reached 89.66 million units in 2023, up 52% a year earlier (or +30.81 million units), with unique users reaching 47.46 million (+64% a year earlier or +18.60 million people). Active users, meanwhile, reached 7.7 million people (+25% a year earlier or +1.55 million people) in the same comparative period.
Arreco added, “Duly-registered digital lending applications continue to be viewed as trusted financial partners for persons needing accessible formal credit, especially the underserved market. The increased use of apps offering personal loans also affirms Filipinos’ growing preference for digital channels and flexibility when utilizing credit.”
Digido expects Filipinos’ interest in digital lending to remain very high and stable. The future of the fintech industry looks promising, with further collaboration to make its services even more accessible, hinting at a potential boom in the digital lending sector.
An earlier commissioned survey by Digido published earlier this year revealed that personal loans were the most popular formal credit option, with 54% of respondents having one in 2023 due to its flexibility and variety of use, while BNPL was the second most popular type of formal loan at 12%
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