Insider Spotlight
Philippines’ 2025 Credit Perception Index (CPI) holds at 73
Trust in credit products up 6 points, but fraud fears rising
Unbanked segment narrows gap with general population
FinTech users debut with highest CPI score of 74
The stability masks diverging trends: trust in credit products rose by six points, but receptivity to credit messaging dropped nine points, reflecting headwinds from high interest rates and digital fraud fears.
“We are glad to see the CPI score holding largely steady in 2025, supported by growing trust in credit products,” said Peter Faulhaber, president and CEO of TransUnion Philippines, the first comprehensive credit reference agency in the country.
Knowledge and appetite for credit expand
The report highlights Filipinos’ strong understanding of credit, with 69% saying they know what credit is. Interest in specific financial products also grew, particularly for payday loans (+7 percentage points [pp]), micro loans (+7pp), mobile loans (+6pp), personal loans (+5pp), and buy now, pay later (BNPL) (+5pp).
“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.
Barriers to credit use linger
Despite positive gains in trust and openness, external factors continue to hold back Filipinos from actively using credit. High interest rates remain the top deterrent—cited by 59 percent of the general population, 52 percent of the unbanked, and 61 percent of FinTech users.
Concerns about scams and fraud followed closely, affecting more than half of respondents in most groups. Security and trust ranked as key considerations when choosing a financial institution (58 percent ), just behind convenience (60 percent ).
These findings underscore a critical challenge: while trust is improving, Filipinos still need stronger assurances through safer and more supportive credit environments.
Unbanked catching up
The unbanked population’s CPI score climbed to 67 from 65 in 2024, narrowing the gap with the general population to six points. Gains were driven by higher trust (+9 points) and better knowledge (+8 points) of credit products.
Knowledge of mobile loans (+16pp) and payday loans (+15pp) surged, signaling progress toward financial inclusion, though the unbanked still lag the general population in overall awareness.
FinTech users set the pace
TransUnion introduced FinTech users as a new group in 2025, recording the highest CPI score at 74. Nearly all respondents (91%) reported using at least one digital financial product, with eWallets leading at 77 percent .
Over one-third of Filipinos said an eWallet was their first financial product—outpacing bank accounts—especially among Gen Z (47 percent) and Millennials (37 percent ).
“The strong performance of FinTech users and the narrowing gap between the unbanked and general population reflect encouraging momentum toward greater financial inclusion,” Faulhaber added. —Ed: Ramon C. Nocon
