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MANILA, Philippines — Filipinos are spending more time on digital lending apps, averaging 12 minutes and 14 seconds per month in 2024, a recent report showed.
In a study released on Tuesday, May 6, online lending app Digido found that Filipino consumers cumulatively spent around 1.54 billion seconds on digital lending apps in 2024. This is 16% higher than the time Filipinos spent on such apps in 2023.
It also showed how Filipinos frequented fintech platforms offering personal loans the most, accounting for 76.4% of recorded activity last year.
Personal loans. This means that Filipinos used up an estimated 1.17 billion seconds on personal loan apps, mirroring the surge in digital lending app downloads, which grew from 89.66 million in 2023 to 127.69 million in 2024.
According to Digido, the number of unique users rose from 47.46 million to 67.84 million, while active users grew from 7.7 million to 11.78 million.
“The growth in downloads, active and unique users, as well as the increase in total time spent in applications indicate continued consumer interest and high demand for such financial instruments,” said Rose Arreco, Digido business development manager.
Buy now, pay later. Following personal loans, “buy now, pay later” (BNPL) services accounted for 21.4% of app activity. Filipinos spent less of their time on apps offering installment loans, making up the smallest share at just 2.2%.
While increased usage doesn’t necessarily translate to more loans, Digido explained to Philstar.com that it represents the growing demand and appetite for easier means to borrow money.
This may also be because more established lending institutions tend to have stricter credit requirements, making it harder for some users to secure a loan, Digido said.
In contrast, some digital lending apps may have more lenient and convenient standards, allowing more Filipinos to borrow, though often at higher interest rates to compensate for the risk.
“Personal loans, in particular, remain a key driver of this industry due to its flexibility, ease of access, and competitive rates,” Arreco said.
Stronger financial literacy urged
Meanwhile, the Bangko Sentral ng Pilipinas (BSP) said the surge in lending app activity also signals Filipinos’ stronger reliance on digital platforms for financial access.
“The rise in activity on digital lending apps shows how more Filipinos are turning to digital tools for financial access,” BSP Deputy Governor Bernadette Romulo-Puyat told Philstar.com in a message.
Digital lending platforms help promote financial inclusion, she added. The BSP defines this as the "effective access to finance-related products and services for everyone, especially the vulnerable sectors" to improve financial health.
According to the BSP's 2023 National Strategy for Financial Inclusion report, the share of digital payments rose to 42% by volume in 2022. The use of formal credit also jumped to 25% in 2021 from 19%.
But with more Filipinos turning to these apps, she stressed the need to ramp up efforts on financial literacy.
“While this can support inclusion, it also highlights the need for stronger financial literacy and consumer protection — especially with the growing use of personal and BNPL loans,” she said.
Romulo-Puyat added that the Bangko Sentral ng Pilipinas is “closely monitoring” the trend to ensure Filipinos can borrow money safely and responsibly.
Digido’s study examined 47 digital lending applications listed under the Securities and Exchange Commission (SEC), including itself.
