As a result of digitalization since the beginning of the pandemic, Filipinos have become accustomed to managing their finances through e-wallets and banking apps, according to a study by analytics firm Adjust.
In its Finance App Insights report, Adjust found that Filipinos spent nearly 15 minutes per session accessing their digital financial services apps in the second quarter.
This is longer than the global average of 6.38 minutes.
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At the same time, the company recorded a 22 percent increase in downloads of financial apps between April and June compared to the previous quarter.
“The rapid proliferation of financial apps in the Philippines has changed the way Filipinos manage their finances,” said April Tayson, Regional Vice President for Southeast Asia, South Asia, Australia and New Zealand at Adjust.
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“It underscores growing consumer confidence in digital platforms and provides a critical opportunity for the financial industry to redouble its efforts to deliver seamless, accessible digital solutions to maintain its competitive advantage,” Tayson added.
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Financial inclusion
Digital banking services enabled consumers to transfer money and make payments with a few taps on their mobile phones. The change in consumer behavior was aided by the COVID-19 lockdown measures that forced the public to conduct transactions online.
E-wallets in particular have also contributed to wider financial inclusion in the country as they impose fewer documentary requirements upon registration.
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In fact, a 2021 survey by the Bangko Sentral ng Pilipinas (BSP) found that 56 percent of Filipinos now have formal bank accounts due to the popularity of e-wallets.
As digital payments become more prevalent, local fintech player Mochi estimates that 67 percent of retail payments will be processed through online platforms this year.
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The BSP launched QR Ph in 2019 to promote digital payments. It is a solution based on QR (Quick Response) codes that can be scanned at the point of sale to enable faster transactions.
