Filipinos Spend 1.3 Billion Seconds on Digital Lending Apps in 2023
In 2023, Filipinos devoted approximately 1.3 billion seconds, which is equivalent to 42 years, using digital lending applications. This surge in activity is attributed to the increasing accessibility of financial tools and credit services for consumers, according to a study by consumer credit service Digido.
The study revealed that the average user of digital lending apps spent around 14 minutes and seven seconds per month in 2023, with the average duration of a user’s session being 54 seconds. The majority of time, about 63.4 percent, was spent on platforms offering personal loans, followed by “point-of-sale” and secured loans at 17.5 percent, “buy now, pay later” (BNPL) services at 16.6 percent, and installment loans at 2.5 percent.
Digido’s analysis included 70 online lending applications that are duly registered to operate in the Philippines. According to Digido’s business development manager Rose Arreco, these registered digital lending apps are seen as trusted financial partners for individuals seeking accessible formal credit, particularly in the underserved market.
The study also indicated a 37 percent increase in user activity across all 70 apps in 2023 compared to the previous year. Additionally, the number of downloads for online lending apps reached 89.66 million units in 2023, marking a 52 percent increase from the previous year.
With interest in digital lending expected to remain high, Digido emphasized the importance of collaboration within the fintech industry to enhance the accessibility of their products and services. Arreco stated that platforms offering personal loans are reaching more low-income segments through new technologies or partnerships with banks.
Personal loans emerged as the most popular formal credit option, with 54 percent of survey respondents utilizing them in 2023 due to their flexibility and variety of use. Meanwhile, BNPL ranked as the second most popular type of formal loan at 12 percent last year.
Overall, the study showcases the growing preference among Filipinos for digital channels and the increasing demand for formal credit options in the country’s current macroeconomic environment.
