Philippine fintech user base projected at 59.3 million by end of year
THE NUMBER of financial technology (fintech) users over 15 years old in the Philippines who transact via mobile apps is expected to hit 59.3 million by the end of 2023, consumer finance company Digido said.
In a report, Digido said fintech adoption may hit 72.2% of the eligible user population by the end of 2023, up from 69.3% in 2022 and 64.4% in 2021.
“The findings from our report indicate that the inertial movements towards the “fintechization” of the population are going from strength to strength. The country’s fintech infrastructure is also showing high adaptability to ever-emerging challenges, mainly due to a large domestic market and progressive government support,” Digido country manager Farit Shakirov said in a statement.
“As it stands, there remains opportunity for the fintech industry to maintain momentum and build towards a more vibrant ecosystem by cultivating further trust in their services by providing seamless, communicable user experiences and fruitful collaborations,” he added.
The report said that the payments sector will be the main driver for future fintech adoption. This segment includes electronic wallets, digital banking, and payment of bills and taxes.
Digido estimated that the payments and transfers sector, which is expected to grow at 17.6%, will propel the industry.
This segment includes E-wallets, Digital Lending, and E-commerce.
Over the past five years, E-wallets posted 1,026% user growth, while digital lending grew 330% and E-commerce 222%, Digido noted.
“However, in turn, digital lending shows more stable annual growth rates than all other fintech sectors in the Philippines,” it added.
Blockchain and Cryptocurrency are expected to lag the other segments. Digido expects it to decline 4.3% by the end of 2023.
“In summary, total financial inclusion in the Philippines is only a matter of time,” it said. — Aaron Michael C. Sy
Source : https://www.bworldonline.com/economy/2023/08/07/538306/philippine-fintech-user-base-projected-at-59-3-million-by-end-of-year/
