In 2019, there were 124 online lenders in the Philippines, of which 75 had mobile apps, 40 were web-based and five were “brick-and-mortar outfits” with their own digital platforms, a Foundation for Media Alternatives study noted.
Loan apps thrive in the Philippines because they are accessible. Almost the entire process of loaning through a digital platform, from registration to receiving the money, is done online.
Unlike applying for a loan in banks, using loan apps saves a lot of time and effort because one does not need to wait in a queue and fill out papers. Clients are also not limited to applying for loans during business days because the apps are available all the time.
Loan apps also have minimal requirements. They do not require that much from customers, making these platforms the easy choice where one can get loan approval in as little as five minutes.
The only things a borrower needs is a smartphone, internet connection and the required documents.