Adoption of Fintech Services via Mobile Apps Set to Surpass 72% in the Philippines by End of 2023

The utilization of financial technology (fintech) services through mobile applications is on a rapid ascent in the Philippines, with projections indicating a surge beyond 72.2% or 59.3 million users among the population aged 15 and above by the conclusion of 2023. This promising forecast originates from a recent report furnished by consumer credit service provider Digido, as reported by Finextra News. 

The forthcoming growth in this metric is anticipated to be driven primarily by the Payments & Transfers segment, poised for a remarkable upswing of 17.6%. Following closely are E-Wallets with a growth rate of 4.9%, Digital Banking at 4.3%, Digital Investments at 3.7%, and Digital Lending at 0.9%.

In the preceding year, fintech adoption within the demographic of individuals aged 15 and above in the Philippines climbed to 69.3% from the 2021 figure of 64.4%. Mirroring trends in the broader region, the e-commerce sector played a pivotal role, attaining nearly universal adoption rates among adults in the Philippines by the close of 2022.

Among the 867 actively employed fintech applications in the Philippines, the Digital Banking and E-Wallets segments emerged as the most favored, accounting for 18.8% (163 applications) and 15.5% (134 applications) respectively. Trailing these are Payments & Transfers with 11.9% (104 applications), Wealth Management with 9.9% (86 applications), and Digital Lending with 9.6% (84 applications).

The segment displaying the most robust download growth rate over the span of 2018 to 2022 was Payments & Transfers, boasting an impressive 11.3% monthly increase, trailed by Business Management at 10.7% and Financial Advisors at 8.4%.

Analyzing the user growth pattern over the past five years, the prominent contributors propelling the expansion of the Philippine fintech landscape include E-Wallets (experiencing a remarkable growth of 1026%), Digital Lending (with a surge of 330%), and E-commerce (rising by 222%).

Digido’s Country Manager, Farit Shakirov, remarked on the report’s findings, highlighting the increasing momentum toward the «fintechization» of the population. Shakirov noted the adaptability of the country’s fintech infrastructure to emerging challenges, largely attributable to the sizable domestic market and progressive governmental support. Furthermore, Shakirov emphasized the potential for the fintech sector to sustain its momentum and foster a more dynamic ecosystem. This could be achieved by cultivating enhanced trust through seamless user experiences and fostering productive collaborations.

The fintech landscape in the Philippines is poised for significant growth, with mobile app-based services gaining considerable traction among various demographics. This surge is indicative of the country’s evolving fintech ecosystem and its capacity to adapt to changing circumstances while capitalizing on opportunities for innovation and collaboration.