Lending and savings services recognized as a key enabler of digital finance in the Philippines
According to analysts from Robocash Group.
Every four years, The World Bank publish his ‘World Search’ to determine the progress of digital finance and financial inclusion in different parts of the world.
Its most recent edition, published in June 2022, showed how developing countries, in particular, were actively making significant progress in this regard.
For example, compared to 2017, the share of account holders increased by eight percentage points to 71%, and the number of respondents who made or received digital payments increased by 13 percentage points to 57%. .
The World Bank’s findings appear to correlate with data produced by analysts from Robocash Group, a financial group of companies providing robotic financial services in the area of alternative lending and market finance.
Robocash Group operates in the Philippines through the online credit service Digidoas well as a financial mobile application UnaCash.
The Group’s research measured adoption of digital payments and financial adoption in the Philippines, and ultimately found that the country’s financial services are becoming increasingly accessible.
According to the Group, the number of current account holders has multiplied by 1.5 to reach 51.4% of the population. Even more impressively, the share of credit and debit card owners tripled to 15.9%, while the share of mobile accounts increased fivefold to 21.7%.
The data also appears to show that the country’s borrowing rose from 10.7% to 17.5% alongside general saving, which also increased from 11.9% to 19.2%.
These improvements are most notable, as they have made digital lending, savings deposits, and mobile money the most promising fintech sectors in the Philippines.
Providing additional information, Robocash analysts comment: “From our perspective, Findex has confirmed most of what we already knew. We conducted a similar survey in the Philippines in 2021. Its results are broadly in line with World Bank findings: share of financial institution accounts (Findex – 45.9%, RCG – 38%), borrowing from financial institutions (17.5 percent versus 22.5 percent), to name a few.
“The catalyst for this explosive growth is the Covid-19 pandemic, as 68% of respondents said they experienced financial difficulties at the time, and were therefore forced to adapt. Naturally, government policies on financial inclusion have also played their own role.