UnaFinancial: Philippine Neobanks Will Serve 50 Million Customers by 2025

November 09, 2020 - 02:39
UnaFinancial: Philippine Neobanks Will Serve 50 Million Customers by 2025

SINGAPORE - Media OutReach - 9 November2020 - According to the analysts of the international financial group UnaFinancial, neobanks in the Philippines will serve 51.4 million customers by2025. At the same time, their cumulative loan portfolio will amount to $15billion and the number of active deposit accounts will reach 10 million.

The audience of neobanks includes the entirepopulation of the country aged 20-64. According to the data, there will be about 65.7 million (56.2%) people of this age in thePhilippines in 2025. By this time, the population will have nearly 100% accessto the Internet and mobile connection, so the technological restrictions on theuse of fintech services have not been taken into account.

In the study, the following groups were subtractedfrom the total of 65.7 million: low-income and unemployed population (-3.9million),  high-income citizens withlittle interest in financial services (-3.2 million), loyal customers oftraditional financial institutions (-3.0 million), citizens with lowtechnological literacy (-0.7 million), population with low interest in financial services (forinstance, due to low financial literacy, -2.0 million), other irrelevantcategories (-1.5 million). As a result, the target audience was reduced to 51.4million potential clients,who make up almost half of the country's population. This figure correlateswith the number of adult Filipinos (51.2 million) who remain unbanked.

At the same time, there is a growing share ofconsumer loans in the country's economy. The big demand for borrowings, theeconomic stabilization and the development of neobanking will lay thefoundation for a long-term digital transformation of the financial sector inthe Philippines. The expansion of the neobank industry may increase the shareof consumer loans to GDP to 12-15% in 2025. The rapid inclusion of thepopulation from non-capital regions and the gradual growth of their incomeswill allow the market to reach $15 billion, which is a 20% share in the totalvolume of consumer loans in the Philippines. In terms of deposits, with moreattractive conditions, neobanks will easily get clients from traditional banks,gaining 10 million active accounts in the next 5 years. These estimates suggestactive inclusion of the young tech-savvy generation as well.

Sergey Sedov, ChiefExecutive Officer of UnaFinancial, commented: "Certainly, it will take time torealize the neobanks' customer potential in the Philippines, but in the nextone or two years, there will be millions of real clients. For instance, today,at least 8 million of such citizens live in 500 cities that are not covered bybank branches. This population, as well as people from other segments includinginformal workers, youth and applicants rejected by banks, will provide asufficient basis for the rapid growth of neobanks in the Philippines."


Headquartered in Singapore, UnaFinancial is a group of companies, which providesfintech services in 8 markets of Asia and Europe. Founded by entrepreneurSergey Sedov in 2013, the group focuses on micro-consumer lending, marketplacefunding and development of software. All products of the group are builtcompletely in-house using artificial intelligence, machine learning anddata-driven technologies to provide precise and comprehensive risk management,comfort and speed for customers and efficiency for business. For the time ofoperation, the group has served more than 11 million customers and providedfinancing in the amount of 800 million USD.