Philippine credit perception slightly down in 2025

GMA Network

a day ago

While this year's CPI score was slightly lower from last year's, the results "also tell us that Filipinos are eager to learn more about financial options that are relevant, accessible, and suited to their needs," TransUnion Philippines president and CEO Peter Faulhaber told reporters on Aug. 19, 2025. Jon Viktor D. Cabuenas/GMA Integrated News
Private credit reference agency TransUnion Philippines on Tuesday reported a slight decline in the country's credit perception index (CPI) score, as its recent study found a decline in credit messaging receptivity due to growing concerns about digital fraud.
According to TransUnion Philippines president and chief executive officer Peter Faulhaber, the country's CPI or the overall assessment of credit sentiment for 2025 stood at 73 out of 100, slightly lower than the 74 recorded in 2024.
'That's reflective of the underlying perception of how consumers feel, so it's really a bottom up addition. There's no top down number or grade that we're trying to achieve. It's really just meant to be a temperature check of credit perception,' he told reporters in Makati City.
The biggest decline was recorded in credit messaging receptivity, or the likelihood to use credit after learning about its potential benefits, which dropped by nine points to 84.
'It's primarily impacted by fraud and scams and interest rates. Although knowledge is increasing, customers are worried about those two things. That's the biggest drag that we would have,' he Faulhaber said.
More than half or 52% of the general population cited concerns about scams and fraud, which was also noted by 47% of the unbanked sector, and 53% of financial technology (fintech) users.
Declines were also recorded in terms of credit favorability which fell by three points to 63, and stigmas and concept knowledge which both lost one point each.
This comes as the study found that a growing number of Filipinos were concerned about the amount of requirements needed to apply for personal loans and credit cards, while several credit offerings were also increasingly perceived as risky, along with high interest rates.
Despite the slight drop, Faulhaber said the latest findings indicate that credit perception in the country remains generally stable, with growing interest seen in learning about specific credit products such as payday, micro, and personal loans, and buy now pay later programs.
'We are glad to see the CPI score holding largely steady in 2025, supported by growing trust in credit products. More encouragingly, this year's CPI results also tell us that Filipinos are eager to learn more about financial options that are relevant, accessible, and suited to their needs,' Faulhaber said.
'This increasing openness is a positive indicator of progress. As financial literacy deepens, we anticipate even greater familiarity, trust, and responsible use of credit—key pillars in building a more inclusive and robust financial ecosystem in the Philippines,' he added.
The report found that there was a six-point increase in public trust on credit to 74, with Filipinos prioritizing convenience, security and trust, and accessibility as their top considerations.
In terms of openness to borrowing, more Filipinos intend to borrow from formal channels when compared to the previous year—38% are open to borrowing from traditional banks to reflect an increase from 23%. last year, while those open to borrowing from digital banks increased to 27% from 18% previously.
When accessing credit, Filipinos most prioritized the lowest rate, the credibility of the financial institution, and speed of approval, while the least prioritized factors were annual fees, agent or representative assistance, and the number of requirements.
Majority or 91% of Filipinos were also reported to use at least one fintech product—e-wallet usage increased to 77%, online banks at 51%, online payment applications at 47%, money lending applications at 23%, cryptocurrency applications at 21%, online investment applications at 19%, and online insurance applications at 13%.
'[T]o fully unlock the benefits of credit and drive broader adoption, we must continue addressing persistent barriers—especially concerns around fraud and security that still deter many Filipinos from engaging with credit,' Faulhaber said.
'By fostering trust and enhancing financial education, we can empower more Filipinos to participate confidently in the credit economy, helping build a financially resilient population that supports the nation's journey toward upper-middle income status,' he added.
This year's report was based on responses of 1,165 consumers surveyed and assessed about their current attitudes and future openness to credit from March 27 to April 7, 2025. — BM, GMA Integrated News