According to the data from Digido, Filipinos have spent 1.3 billion seconds, or about 42 years, on digital lending apps in 2023. The consumer credit service sees this as an indication of Filipinos’ growing reliance on digital platforms for financial services.
Of the time spent on these apps, 63.4% was dedicated to personal loans, followed by 17.5% for point-of-sale and secured loans, 16.6% for ‘buy now, pay later’ (BNPL) services, and 2.5% for installment loans. The study covered 70 registered digital lending applications operating in the Philippines, including Digido.
“Duly registered digital lending applications continue to be viewed as trusted financial partners for persons who need accessible formal credit, especially the underserved market,” said Rose Arreco, business development manager, Digido.
Increase app engagement
Compared to 2022, activity on digital lending apps increased by 37% in 2023. The average user spent about 14 minutes and 7 seconds a month on these platforms, with each session lasting roughly 54 seconds.
Downloads of digital lending apps reached 89.66 million in 2023, marking a 52% rise from the previous year. Unique users grew by 64% to 47.46 million, while the number of active users increased by 25% to 7.7 million.
Arreco expects continued high interest in digital lending, driven by partnerships within the fintech industry to enhance service accessibility. She noted that the growing demand for formal credit options, particularly personal loans, is helping these platforms reach more low-income populations.
Earlier this year, a Digido survey showed personal loans were the most popular type of formal credit in 2023, with 54% of respondents having one. BNPL services followed as the second most popular option at 12%.
This trend highlights a shift to digital solutions in the Philippine financial sector, mirroring a global move toward technology-driven financial services.