Fintech adoption in the Philippines among the 15-and-up population is expected to increase to 72.2% this year from just 69.3% last year and 64.4% in 2021, according to a new report.
The 72.2% adoption rate means the country will have 59.3 million people aged 15 and above using fintech through mobile apps, the report released by consumer credit service Digido showed.
This robust growth is anticipated primarily from the Payments & Transfers segment, which may see a rise of 17.6%. Other segments like E-Wallets, Digital Banking, Digital Investments, and Digital Lending are predicted to grow by 4.9%, 4.3%, 3.7%, and 0.9%, respectively.
In 2022, the fintech adoption rate for those aged 15 and above stood at 69.3%, a significant leap from 64.4% in 2021. In alignment with regional trends, the e-commerce sector was a dominant player, boasting almost a 100% adoption rate among adults by the close of 2022.
Currently, 867 fintech applications are actively used in the country. Of these, the Digital Banking and E-Wallets sectors are leaders with 18.8% (163 apps) and 15.5% (134 apps) market share, respectively.
Other noteworthy segments include Payments & Transfers at 11.9% (104 apps), Wealth Management at 9.9% (86 apps), and Digital Lending at 9.6% (84 apps).
Since 2018, the Payments & Transfers segment has witnessed the highest monthly download growth rate of 11.3%, according to the report. The subsequent positions are occupied by Business Management with 10.7% and Financial Advisors with 8.4%.
“The findings from our report indicate that the inertial movements towards the ‘fintechization’ of the population is going from strength to strength,” said Digido country manager Farit Shakirov. “The country’s fintech infrastructure is also showing high adaptability to ever-emerging challenges”.
Shakirov further highlighted the untapped potential within the industry to foster trust through enhanced user experiences and strategic partnerships.
Digido is a Philippine-based fintech company that offers instant and transparent financing for the underbanked and undeserved consumers of the country. Through its robotic technology, the startup provides automatic applications, credit scoring, and disbursement services.