Philippines Alternative Lending Market Business and Investment Opportunities Databook – 75+ KPIs on Alternative Lending Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics - Q2 2024 Update

Philippines Alternative Lending Market Business and Investment Opportunities Databook – 75+ KPIs on Alternative Lending Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics - Q2 2024 Update

According to PayNXT360, the alternative lending in the country is expected to grow by 25.5% on an annual basis to reach US$492.7 million in 2024.

Medium to long term growth story of alternative lending in Philippines remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 17.4% during 2024-2028. The alternative lending market in the country will increase from US$392.6 million in 2023 to reach US$936.6 million by 2028.

The alternative lending sector in the Philippines is rapidly expanding, driven by innovation, strategic partnerships, and supportive regulatory changes. As digital solutions become more integrated into the financial system and new products cater to diverse needs, the sector is well-positioned for continued growth and increased financial inclusion.

Growth in the Alternative Lending Sector

The alternative lending sector in the Philippines has experienced significant growth, driven by increasing demand for accessible credit solutions among the unbanked and underbanked populations. As competition intensifies, particularly with the entry of foreign players, innovation is expected to flourish, leading to a broader range of lending products and services tailored to consumer needs. Looking ahead, the market is poised for continued expansion, with projections indicating robust growth as digital lending solutions become more integrated into the financial ecosystem. This growth is further supported by strategic partnerships among key industry players.

Key Developments in the Alternative Lending Sector

Product Launches and Innovations

• Tonik Introduces Flex Loan and Big Loan - Tonik, a neo-bank in the Philippines, has launched two new lending products: Flex Loan and Big Loan. Flex Loan allows for collateral-free purchases, while Big Loan requires property as collateral. These offerings complement Tonik's Quick Loan product, reflecting the increasing demand for diverse credit solutions.
• Salmon Launches Point-of-Sale Lending Service - Fintech startup Salmon has launched a point-of-sale lending service, partnering with 30 merchants to target millennials and Gen Z consumers seeking accessible credit options. The lending product is designed for younger consumers who prefer a simple and convenient borrowing experience over traditional financial institutions.

Strategic Partnerships

UNO Digital Bank and Trusting Social have established a notable partnership in the alternative lending sector in the Philippines. This collaboration aims to enhance access to consumer lending for underserved Filipinos by leveraging Trusting Social's AI-powered credit scoring and customer onboarding solutions. The partnership focuses on utilizing telco data to create accurate credit risk profiles, particularly for unbanked individuals, promoting financial inclusion in the country.

Regulatory Changes

• Draft Guidelines for Online Lending Platforms - The Securities and Exchange Commission (SEC) is seeking public comments on draft guidelines for registering and licensing online lending platforms to ensure consumer protection and fair lending practices. The final guidelines are expected to be released within the year.

• Internet Transactions Act - The Internet Transactions Act (ITA), signed into law, aims to enhance e-commerce in the Philippines while safeguarding consumer rights and data privacy. This law governs online transactions, including those involving alternative lending services. By imposing standards for transparency and accountability, it is expected to create a more secure environment for digital financial activities. Central Bank Initiatives.

• The Bangko Sentral ng Pilipinas (BSP) is focused on promoting digital banking and cashless payments, including regulatory measures to support digital lenders and improve the financial ecosystem as part of its Digitization Roadmap. This aims to enhance consumer access to financial services, crucial for the growth of alternative lending.

This report provides a detailed data-centric analysis of the Alternative Lending industry, covering market opportunities and risks across a range of industry categories. With over 50 KPIs at the country level, this report provides a comprehensive understanding of Alternative Lending market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunity by type of payment instrument, loan types, and consumer behavior. In addition, it provides a snapshot of marketing objective and industry spend dynamics in Philippines. KPIs in both value and share term help in getting in-depth understanding of end market dynamics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

Scope

This report provides in-depth data-centric analysis of Alternative Lending industry in Philippines through 125 tables and 150 charts. Below is a summary of key market segments:

Philippines Economic Indicators
• Gross Domestic Product at Current Prices
• Population
• Unbanked Population
• Unemployment Rate
• Loan Default Rate

Philippines Alternative Lending Market Size and Forecast
• Transaction Value
• Average Transaction Value
• Transaction Volume

Philippines Alternative Lending Market Size and Forecast by End User
• End User - Business
• End User - Consumer

Philippines Alternative Lending Market Size and Forecast by Finance Models
• P2P Marketplace Consumer Lending
• P2P Marketplace Business Lending
• P2P Marketplace Property Lending
• Balance Sheet Consumer Lending
• Balance Sheet Business Lending
• Balance Sheet Property Lending
• Invoice Trading
• Debt Based Securities
• Equity Based Crowd Funding
• Real Estate Crowd funding

Philippines Alternative Lending Market Size and Forecast by Payment Instrument - Transaction Value, Volume and Average Value
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money

Philippines Alternative Lending Market Size and Forecast by Payment Instrument to Model
• Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Consumer Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Business Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money

Philippines Alternative Lending Market Size and Forecast by Loan Types
• B2C Loans
• Personal Loan
• Payroll Advance
• Home Improvement
• Education/Student Loans
• Point of Sale
• Auto Loans
• Medical Loans
• B2B Loans
• Lines of Credit
• Merchant Cash Advance
• Invoice Factoring
• Revenue Financing

Philippines Alternative Lending Analysis by Consumer Attitude and Behaviour
• By Age
• By Income
• Gender

Reasons to buy

• Gain a thorough understanding of the Alternative Lending market dynamics: Market opportunities, significant trends, and forecasting (2019 – 2028) are listed. To stay ahead of the curve, comprehend market trends using important KPIs like Value and Share.

• Insights by Industry: Evaluate new opportunities across multiple industries, and obtain market dynamics by industry in order to swiftly catch up with the latest and upcoming developments in Alternative Lending markets.

• Market-specific strategies: With our unique blend of quantitative forecasting and cutting-edge insights, we can identify growth sectors that are focused on particular opportunities and analyse market-specific risks as well as significant trends in the Alternative Lending industry.

• Through industry intelligence, forward-looking research of Alternative Lending market spend, and key opportunities in Philippines, develop proactive and profitable company plans.