They could hit up to 10 million deposit accounts by this year.
Digital-only banks in the Philippines can look forward to having a potential 51.4 million clients by 2025 and could reach as much as a cumulative loan portfolio of $15b, according to a data analysis by financial services group Una Financial.
Neobanks could also hit up to 10 million deposit accounts by this year.
The numbers assume that the Philippine population will have nearly 65.7 million people between the age of 20-64 by 2025. The analysis subtracted low-income and unemployed population, high income citizens with little interest in financial services, and citizens with low technological literacy, amongst other groups, to arrive at their assumption.
As a result, the target audience was reduced to 51.4 million potential clients, who make up almost half of the country's population. This figure reportedly correlates with the number of adult Filipinos (51.2 million) who remain unbanked.
By 2025, the population is expected to have nearly 100% access to the Internet and mobile connection, so the technological restrictions on the use of fintech services have not been taken into account, according to Una Financial.
The potential expansion of the neobank industry may increase the share of consumer loans to GDP to 12-15% in 2025, the report further noted.
Furthermore, the rapid inclusion of the population from non-capital regions and the gradual growth their incomes will allow the market to reach $15b, which is a 20% share in the total volume of consumer loans in the Philippines.
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