The Philippine digital lending sector is on track to exceed USD1 billion by the end of 2025, driven by surging consumer demand for accessible online financial solutions. According to a new report by Digido, non-bank digital lenders are projected to dominate the market, capturing 55.2 percent of the total market value, which translates to an estimated USD556.5 million. Meanwhile, digital banks are expected to contribute 44.8 percent or around USD451 million over the same period.
This forecast marks a significant jump from the USD796 million expected by the end of 2024 and USD693 million recorded in 2023, underscoring the rapid growth of the industry. In just the first ten months of 2024, digital lending platforms saw 58.9 million app downloads. If this trend continues, Digido predicts that total downloads could reach approximately 73.5 million by the close of 2024, a 56.4 percent increase from the previous year.
From 2013 to 2023, the market has expanded at an impressive average annual growth rate of 28 percent, equivalent to USD68 million per year.
“This rapid growth affirms the increasing preference of Filipinos for digital credit solutions as part of their personal finance strategies,” said Rose Arreco, business development manager at Digido. “With more Filipinos turning to online platforms for financial services, we are confident that the market will continue its upward trajectory, driven by strong government support, efforts to further digitalize the economy, and the increasing financial inclusion of underserved populations.”
Arreco also highlighted the influence of Generation Z, which constitutes nearly a third of the country’s population. This tech-savvy demographic is expected to play a key role in the ongoing growth of the digital lending market as they increasingly embrace mobile-based financial technologies.
The growth of digital lending services in the Philippines is further supported by Digido Finance Corp., which is registered with the Securities and Exchange Commission (SEC) under Registration No. 202003056 and holds Certificate of Authority No. 1272.
As the sector continues to evolve, industry players are poised to benefit from a wave of innovation, with greater financial inclusion and digital adoption driving the market to new heights.
