The Philippines’ digital lending market, comprising both licensed non-bank lenders and digital banks, is projected to surpass $1 billion by the second half of 2025, according to Digido, a leading digital lending platform that offers quick and easy access to personal loans.
A new industry analysis conducted by Digido forecasts that non-bank digital lenders will capture the majority of the market share, at an estimated 55.2% or $556.5 million by the end of 2025. Digital banks are expected to hold the remaining 44.8% share, equivalent to $451 million.
The projected market size of $1 billion represents a significant increase from the $796 million anticipated for 2024 and the $693 million recorded in 2023. This upward trend reflects the continuous adoption of digital lending solutions in the Philippines.
During the first ten months of 2024, both non-bank digital lenders and digital banks witnessed a combined total of 58.9 million app downloads. If this momentum continues, the analysis predicts that the total number of downloads for both sectors could reach approximately 73.5 million in 2024, signifying a substantial 56.4% increase from the previous year.
“The Philippines’ digital lending market has grown steadily, expanding at an average annual rate of 28% (or $68 million) since 2013. This growth is fueled by increased demand for financial inclusion, particularly among the underbanked, who are embracing convenient and affordable digital lending options. Supportive government policies and the tech-savvy Filipino population, especially Generation Z, further drive this market expansion.
Rose Arreco, Business Development Manager at Digido said, “Our latest findings affirm the majority of Filipinos’ growing pivot towards digital sources of credit as part of their personal finance management. We are optimistic that these lending segments will be able to maintain their high growth rates in view of its accessibility for the financially underserved, progressive government support and various projects promoting further digitalization.”
“This growth trend is also largely determined by the fact that a third of the country’s population is from Generation Z — a segment certainly ready to fully accept innovative solutions in the field of financial technologies for mobile applications,” Arreco added.