Fintech adoption in PH expected to reach 80% by end of 2024

The adoption of financial technology (fintech) services in the Philippines via mobile applications is projected to reach nearly 80% by the end of 2024, according to a new analysis by consumer credit service Digido.

The report forecasts that around 66.4 million Filipinos aged 15 and above will be using fintech apps by the close of the year, marking a significant increase in digital engagement.

The growth is anticipated to be led primarily by the Digital Commerce segment, which is expected to contribute 34% to the overall adoption rate.

This is followed by Digital Wallets at 27.2% and Digital Banking at 8.6%. Digido’s analysis reveals that from September 2018 until June 2024, the mobile adoption rate of fintech services among adults in the Philippines stood at 76.2%, translating to 63.1 million unique users.

During this period, the cumulative number of downloads of fintech mobile applications in the country reached 617 million, with Digital Commerce accounting for the largest share at 31.4%, followed by Digital Wallets at 21.7%, and Digital Lending at 20.3%.

The remaining downloads were distributed across digital payments and transfers (11.6%), digital personal finance apps (8%), and digital banking (7%).

In the first half of 2024, the digital lending sector saw the most substantial growth in downloads, with 25.4 million, followed by digital commerce with 13.5 million, and digital wallets with 12.2 million.

The digital banking sector recorded the highest growth rate in downloads, increasing by 22.34% during this period, outpacing digital payments and transfers (17.72%) and digital lending (16.81%).

Commenting on these findings, Digido’s business development manager, Rose Arreco, highlighted the rising trust in fintech services.

“The positive numbers seen in digital lending, digital wallets, and digital commerce can be attributed to growing trust in these segments and their natural synergies with one another,” Arreco said.

“As strong demand for fintech in the Philippines continues, so too do Filipinos’ expectations for convenience, interoperability, and improved user experience across these applications.”

Arreco further noted that the Philippines is on a steady path toward widespread digitalization.

“We believe that the Philippines remains on course towards widespread digitalization, with its ‘fintech-ization’ far from weakening. Collaboration within and outside of the industry remains paramount for this growth to be realized at a faster rate,” she added.