Filipinos collectively spent 42 years on digital lending apps in 2023

About 63.4% of the time was spent on platforms offering personal loans.

In 2023, individuals in the Philippines collectively spent about 1.3 billion seconds, equivalent to 42 years, utilising digital lending applications, according to an analysis by consumer credit service Digido. 

Amongst 70 duly-registered digital lending apps, 63.4% of the time was spent on platforms offering personal loans, followed by point-of-sale and secured loans at 17.5%, buy now, pay later (BNPL) services at 16.6%, and instalment loans at 2.5%.

Activity on these apps increased by 37% compared to 2022, with the average user spending around 14 minutes and seven seconds per month, and the average session duration being 54 seconds. 

Total downloads of digital lending apps reached 89.66 million units, up 52% from the previous year, with unique users reaching 47.46 million, and active users hitting 7.7 million.

“The high percentage of Filipinos with limited access to traditional financial services, combined with the growing demand for formal credit options in the current macroeconomic context, led to more consumers turning to various lending options, especially ones offering personal loans. Such platforms are reaching more low-income segments of the population through new technologies or partnerships with banks,” Digido's business development manager Rose Arreco said in a press release. 

A Digido survey earlier this year found that personal loans were the most popular formal credit option, with 54% of respondents having one in 2023 due to its flexibility, while BNPL ranked second at 12%.