The adoption rate of mobile apps in the financial technology or fintech space among the population 15 years and older is seen rising more than 72 percent by the end of the year, according to a consumer credit service company.
This translates to mobile app users numbering 59.3 million this year, particularly in the payments and transfer segment whose adoption rate is seen growing 17.6 percent, followed by the e-wallet segment seen growing 4.9 percent, the digital banking segment with growth of 4.3 percent, digital investments growing 3.7 percent and digital lending expanding by less than one percent.
Digido Finance Corp, formerly known as Robocash, said the adoption rate among the young has steadily risen from only 69.3 percent last year and only 64.4 percent in 2021.
The steadily rising fintech adoption rate is most apparent in the e-commerce sector although it noted that among older members of the population the adoption rate is close to 100 percent.
Of the 867 actively used fintech applications in the country, the digital banking and e-wallets segments were the most popular, numbering 163 or 18.8 percent and 134 or 15.5 percent, respectively.
Payments and transfers companies numbering 104 or 11.9 percent follow, wealth management come next with 86 companies or 9.9 percent and digital lending firms with 84 members or 9.6 percent come last.
According to Digido, the payments and transfers segment had the highest download growth of 11.3 percent per month from 2018 to 2022, followed by business management (10.7 percent) and financial advisors (8.4 percent).
User growth the past five years that contribute to the development of the fintech industry in the Philippines were derived from e-wallets (1026 percent), digital lending (330 percent) and e-commerce (222 percent).
“The findings from our report indicate that the inertial movements towards the “fintechization” of the population is going from strength to strength. The country’s fintech infrastructure is also showing high adaptability to ever-emerging challenges, mainly due to a large domestic market and progressive government support,” Digido country manager Farit Shakirov said.
“As it stands, there remains opportunity for the fintech industry to maintain momentum and build towards a more vibrant ecosystem by cultivating further trust in their services by providing seamless, communicable user experiences and fruitful collaborations,” Shakirov said.
Some of the more popular fintech apps in mobile devices include Maya, GCash, Home Credit, among others.
