The Philippines’ digital lending market is projected to exceed $1 billion in the latter half of 2025, driven by increased demand for online financial technologies. This forecast, revealed by online lender Digido, includes the combined performance of non-bank digital lenders and digital banks, which are transforming the way Filipinos access credit.
Digido estimates that non-bank digital lenders will account for 55.2% of the market, or $556.5 million, while digital banks will contribute 44.8%, or $451 million. This growth is a notable increase from the $796 million projected by the end of 2024 and the $693 million recorded in 2023.
“Non-bank digital lenders and digital banks continue to provide financial access to underserved segments, offering convenience and efficiency,” Rose Arreco, business development manager of Digido, said in a statement.
The market’s expansion is evident in app downloads. From January to October 2024, both segments saw a combined 58.9 million downloads, with projections for the full year expected to reach 73.5 million — 56.4% more than in 2023.
“Our latest findings affirm the majority of Filipinos’ growing pivot towards digital sources of credit as part of their personal finance management,” Arreco said.
Demographics
Digido’s analysis also pointed to demographic factors fueling the trend.
“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,” Arreco said.
From 2013 to 2023, the market grew at an average annual rate of 28%, or $68 million, showing consistent progress in adopting digital lending platforms. With ongoing government support and initiatives to enhance digital infrastructure, analysts see the sector maintaining its upward trajectory.