More Filipinos braving credit economy
Awareness of and trust in formal credit products outside Metro Manila now rival levels in the capital, a study found, though borrowing preferences continue to vary across the Philippines.
TransUnion said its credit perception index had scored 73 out of 100 among Filipinos living outside the capital region, matching the score of those in Metro Manila.
The index measures consumers’ openness to and trust in formal lending.
The credit insights company attributed the convergence to sizable gains in trust in credit products, which rose 11 points, as well as trust in product knowledge, which increased six points. It said the improvement likely reflected “sustained efforts by the public and private sectors over the years to expand credit awareness, education and access across the country.”
Intent to use credit has also reached comparable levels. About two in five Filipinos—38 percent in the capital and 39 percent elsewhere—said they planned to use credit for purchases in the next three months at the time of the study.
“This progress shows that more consumers are ready and willing to participate in the credit economy, reflecting a meaningful shift in how Filipinos understand and engage with financial products,” said Peter Faulhaber, president and chief executive of TransUnion Philippines.
Differences emerge, however, in attitudes toward specific products.
In Metro Manila, 44 percent of respondents said they were interested in using credit cards, compared with 36 percent of those outside the capital.
