The digital lending market in the country is expected to surpass $1 billion, or P58 billion, in the second half of 2025, fueled by the increasing demand for online financial technologies.
Online loan platform Digido said the market is poised for rapid expansion this year driven by the growing adoption of digital lending platforms by Filipino consumers.
“Our latest findings affirm the majority of Filipinos’ growing pivot towards digital sources of credit as part of their personal finance management," Rose Arreco, Digido business development manager, said.
"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.
The report segments the market into two main players: non-bank digital lenders and digital banks.
Non-bank digital lenders are projected to capture 55.2 percent of the market share, equivalent to $556.5 million, while digital banks are expected to account for the remaining 44.8 percent, or $451 million.
Digido said this growth represents a significant increase from the projected $796 million market size by the end of 2024 and the $693 million recorded in 2023.
Digido's analysis also highlighted the crucial role of app downloads as a key indicator of market growth.
In the first 10 months of 2024, both non-bank digital lenders and digital banks generated 58.9 million app downloads.
Based on current trends, Digido expects this number to reach approximately 73.5 million by the end of 2024, a 56.4 percent increase compared to 2023.
“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 application,” Arreco added.
Digido noted the influence of Generation Z, who have readily embraced digital financial solutions, further accelerating market expansion.
From 2013 to 2023, the market expanded at an average annual rate of 28 percent, equivalent to $68 million per year, positioning the Philippines as a key market for digital lending in Southeast Asia.
Established in 2018, Digido is an online lending platform that offers automated loans available 24/7. With simple application requirements and high approval rates, Digido seeks to assist borrowers, including those with bad credit, in accessing funds.