August 20, 2025 | 12:00am
However excessive charges, fraud fears hinder adoption
MANILA, Philippines — Filipinos have gotten extra open to utilizing credit score, however considerations over rates of interest and fraud proceed to discourage wider adoption, in keeping with the 2025 Credit score Notion Index (CPI) launched by TransUnion.
The Philippines’ CPI rating stood at 73 out of 100 this 12 months, solely barely decrease than 74 in 2024, reflecting secure sentiment towards credit score. Belief in credit score merchandise, nonetheless, climbed by six factors, signaling stronger shopper confidence.
“Filipinos are wanting to be taught extra about monetary choices which can be related, accessible and suited to their wants,” TransUnion Philippines president and CEO Peter Faulhaber stated.
“As monetary literacy deepens, we anticipate even better familiarity, belief and accountable use of credit score – key pillars in constructing a extra inclusive and sturdy monetary ecosystem within the Philippines,” Faulhaber stated.
Nonetheless, obstacles stay. Throughout all teams surveyed like the final inhabitants, the unbanked and monetary know-how (fintech) customers, excessive rates of interest topped the checklist of deterrents, cited by at the very least half of respondents.
Fears of scams and fraud adopted intently, with over 50 % of each the final inhabitants and fintech customers expressing considerations.
Safety and belief emerged as key concerns for Filipinos when selecting monetary establishments, cited by 58 % of respondents, practically matching comfort at 60 %.
The index additionally confirmed encouraging progress amongst unbanked Filipinos, whose CPI rating rose to 67 from 65 final 12 months, narrowing the hole with the final inhabitants from 9 factors to 6. Positive factors in belief (+9 factors) and data (+8 factors) about credit score merchandise helped drive the development.
Data of particular credit score merchandise surged among the many unbanked, significantly cell loans (+16 proportion factors), payday loans (+15 ppt) and micro loans (+12 ppt).
Regardless of this progress, total credit score consciousness among the many unbanked (56 %) nonetheless lags behind the final inhabitants (69 %).
For the primary time, the research additionally tracked fintech customers, who posted the very best CPI rating at 74, together with the very best degree of normal credit score data (71 %).
Amongst Filipinos, e-wallets emerged as the commonest first monetary product, surpassing conventional financial institution accounts, particularly amongst youthful generations.
Practically half of Gen Z (47 %) and over a 3rd of millennials (37 %) began their monetary journey with an e-wallet, in comparison with 40 % of Gen X and 34 % of child boomers who opened financial institution accounts first.
“The robust efficiency of fintech customers and the narrowing hole between the unbanked and the final inhabitants mirror encouraging momentum towards better monetary inclusion,” Faulhaber stated.
“However addressing persistent obstacles, particularly fraud and safety considerations, can be key to empowering extra Filipinos to interact confidently with credit score,” he added.
The TransUnion research, performed from March 27 to April 7, 2025, surveyed 1,165 customers nationwide.
