Fintech Alliance.PH Chairman Lito Villanueva unveiled the 2024 Philippine Digital Lending Industry Report at the Bagong Pilipinas: The Philippine Country Pavilion during the Singapore Fintech Festival, the world’s largest fintech conference.
The report highlights how digital lending platforms, such as Tala Philippines, have driven financial inclusion in the post-pandemic era, offering valuable recommendations for the industry’s rapid growth and improvement.
The study, conducted in collaboration with renowned international research pioneer GeoPoll and sponsored by Tala Philippines and other FinTech players, surveyed Filipinos across Luzon, Visayas, and Mindanao. Its findings emphasize the challenges and opportunities in accessing credit in the Philippines.
Key Insights
Loan Consumer Demographics: A significant portion of digital loan borrowers are young adults (25-34 years old), predominantly female, urban residents with some college education. “More than 79.4% of respondents were Android smartphone users, though Apple smartphone users increased since Fintech Alliance.PH’s recent 2021 study.” Most households have monthly incomes under PHP 42,000 and comprise 2-6 family members.
Loan Purposes and Preferences: Borrowers primarily use digital loans for emergency expenses, bills, and daily needs. “Borrowers valued low interest rates, fast access to funds, and transparent pricing.” Nearly 90% of respondents acknowledged clear awareness of interest rates, fees, and charges, demonstrating industry-wide progress in transparency—a hallmark of Tala’s commitment to radical trust.
Consumer Satisfaction and Loyalty: “89% of respondents were satisfied with their digital lending experience, and 76% would consider future loans from their current credit providers,” underscoring the trust and loyalty Tala Philippines has cultivated among its users.
Positive Consumer Impacts: Digital lending continues to improve access to credit, financial resilience, and savings capacity. “87% of respondents agreed that they would not have convenient or accessible credit without digital loans,” a testament to Tala Philippines’ innovative solutions tailored to Filipino needs.
Championing Industry Growth
The report underscores recommendations for sustainable growth, including maintaining transparency, enhancing user-friendly experiences, improving customer service, and launching financial literacy programs for young and elderly consumers. It also calls for stronger fraud prevention efforts, particularly against scams on social media and messaging platforms, and the adoption of open finance initiatives to ensure inclusivity.
“We hope this report proves valuable for academics and policy-makers and, ultimately, advances the cultivation of a consumer welfare-first digital lending industry,” said Arianne Ferrer, External Affairs Director of Tala Philippines. “Tala is committed to continuously evolving and delivering credit solutions that are focused on Filipinos’ unique circumstances, creating an inclusive financial system founded upon radical trust.”
Other industry leaders echoed the sentiment. Georg Steiger, Co-Founder and CEO of BillEase also noted that the report highlights the industry’s progress and that their company supports inclusive, safe, and transparent credit for Filipinos.
Meanwhile, Zdenek Jankovsky, Treasury and Funding Director of Home Credit Philippines, added, “…by combining innovation with responsible lending, we’ll continue to provide access to affordable credit, protect consumers from scams, and promote robust financial literacy activities.”
As the digital lending industry continues to evolve, Tala Philippines remains committed to its vision of empowering every Filipino through transformative financial services. With a deep focus on building trust and inclusivity, Tala is poised to remain the benchmark for the industry’s growth and success.
