1. High digital penetration could help to address the low unbanked and under banked population and offer financial services to a larger population

Traditional banking services have been unable to penetrate a large part of Philippines’ population. Limitations of physical network reach and documentary requirements have been two hurdles in achieving wider coverage.

However, on a positive note, ~75% of the Philippines’ population has access to the internet. The young population is also digitally active, spending >8 hours per day online. Accordingly, there is a strong case for Fintech services to make up for the lack of traditional financial services.

We estimate that Digital bank users are also expected to reach twice the current number of users due to the government’s support and rapid adoption from the youngsters.

2. Lending and payment players have witnessed strong traction in Philippines’ digital space

Currently, lending and payment are the most prominent segments in terms of the number of players. E-wallet is another segment with multiple players. E-wallets offer the under-serviced population an alternative platform for financial transactions.

Fintech Players Split by Number of Players, In percentages (%)

Note(s): Players list is not exhaustive

3. Digital bank offers a more convenient alternatives versus the traditional offline banks

Digital banks offer more convenient customer onboarding and servicing options versus their traditional counterparts. Due to their online service offerings, Digital banks are well-positioned to scale up their service to a large consumer base.

Bangko Sentral ng Pilipinas has awarded six digital bank licenses in the country. Overseas Filipino Bank has become the first branchless and the only state-owned digital bank in the country.

Digital Bank vs Traditional Bank

4. Fintech sectors find significant investor interest. 2021 funding soared more than 4.5x and this momentum could continue given the low-base

The Philippines FinTech sector witnessed strong investor support in 2021. Early indications from 2022 suggest that investors’ interests could continue to improve further due to the structural growth opportunity in the sector.

Fintech Players Funding, In Mn US$


  • Mrigank leads business research and strategy engagements for leading internet sector corporates at Redseer Strategy Consultants. He has developed multiple thought papers and is regularly quoted in media and industry circles.