According to a recent analysis by consumer finance firm Digido, the adoption of financial technology services through mobile applications in the Philippines is expected to reach almost 80 percent by year end.
The fintech adoption rate among Filipinos aged 15 and above will hit 79.5 percent or 66.4 million users by the end of 2024, a significant increase compared to the 72.2 percent adoption rate last year.
Digido said the most significant growth is expected from the digital commerce segment at 34 percent, followed by digital wallets at 27.2 percent, and digital banking at 8.6 percent.
The positive numbers are attributed to growing trust in various segments as strong demand for fintech continues. Filipinos’ expectations of convenience, interoperability, and improved user experience across applications are also seen increasing.
During the first half of the year, the largest growth of downloads was seen in the digital lending sector at 25.4 million, followed by digital commerce at 13.5 million, and digital wallets at 12.2 million. Digital payments and transfers, digital banking, and digital personal finance applications garnered 7.8 million, 6.2 million, and 4 million, respectively.
As the number of users grows, so must efforts to make the apps and digital services more secure and user friendly, to make it more accessible, along with the education in the financial and technology aspects of its use, in order to make its use safer, especially for those who are new to such financial services.
The proper use of technology and innovation can certainly make life better, but with convenience often comes threats and risks, as even honest mistakes could still end up being costly, potentially making life miserable for the uninitiated. For everyone to benefit from it, the growth in adoption of fintech services should be coupled with increased education, vigilance, and protections, coming from the side of both government and the service providers.*
