The digital lending market in the Philippines could top $1 billion in the second half of 2025, driven by rising consumer demand for online technologies, an online lending firm said. In a report, Digido said that non-bank digital lenders would dominate with a 55.2 percent share or $556.5 million while digital banks would account for 44.8 percent or $451 million. The projected market value is higher than the $796 million expected to have been hit last year and the $693 million recorded in 2023.
'Our latest findings affirm the majority of Filipinos' growing pivot towards digital sources of credit as part of their personal finance management,' Digido business development manager Rose Arreco said on Tuesday. '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,' she added. During the first 10 months of 2024, both non-bank digital lenders and digital banks collectively generated 58.9 million in application downloads. If this trajectory holds steady or improves, app downloads could reach around 73.5 million in 2024, a 56.4-percent increase from 2023. The Philippines' digital lending market was said to have expanded at an average rate of 28 percent from 2013 to 2023, equivalent to $68 million per year. Arreco attributed the growth to Generation Z, which she said is highly receptive to new financial technologies. '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,' she added