MANILA, Philippines — Most Filipinos are anticipating an increase in their household income in the next 12 months amid the reopening of the country’s borders and increased economic activity, according to a survey by information and insights company TransUnion.
TransUnion’s First Quarter 2022 Consumer Pulse Study for the Philippines showed 75 percent of the respondents expect to have higher household income in the next 12 months, given the country’s move to open to tourists.
Meanwhile, 19 percent expect their household income to remain the same in the next 12 months, while six percent see a decline.
The survey covered 1,078 adults in the Philippines with respondents from Gen Z (born 1995 to 2004), millennials (born 1980 to 1994), Gen X (born 1965 to 1979), and Baby Boomers (born 1944 to 1964).
Conducted from Feb.8 to 23, the survey was intended to review consumers’ changing consumer behavior.
“From optimism about improved household incomes to anticipated increased spending in key areas, Filipinos are increasingly bullish about our recovery from the global pandemic,” TransUnion Philippines president and CEO Pia Arellano said.
In the last three months, 36 percent of respondents said they saw their income pick up, while 38 percent said it stayed the same, and 26 percent said it decreased.
The survey showed Filipinos have learned from the pandemic with 51 percent saving more in their emergency fund, 45 percent cutting back on discretionary spending such as dining out, travel and entertainment, and 28 percent spending more on digital services in the last three months.
Over the next three months, Filipino consumers expect to spend more on medical care/services (44 percent), retail shopping (37 percent), and retirement funds and investing (35 percent).
As for the next 12 months, 51 percent of Filipinos said they expect to pay at least one of their current bills and loans in full, while 49 percent do not expect to meet the financial obligations.
Credit is seen as a way for consumers to participate in economic recovery with 52 percent of Filipinos planning to apply for a new personal loan in the next 12 months.
However, the survey also showed 50 percent abandoned plans to apply for new credit or refinance citing the high cost, alternative funding source, and income or employment status as top reasons for doing so.
While all generations see the importance of access to credit and loans to achieve financial goals, it is the younger Filipinos or Gen Z that had the biggest share of respondents planning to apply for credit next year at 50 percent.
Close to half or 48 percent of Filipino respondents said they believe their credit score would increase if businesses used information not on a standard credit report such as rental payments and buy now, pay later loans.
As the pandemic accelerated the digital shift, the survey found 57 percent of Filipinos had conducted more than 25 percent of their transactions online.
With more transactions done online, 53 percent of respondents said they had been targeted by a digital fraud scheme in the last three months.
Phishing (42 percent) was the most common digital fraud scheme respondents encountered, followed by money or gift card (38 percent), third-party seller scams on legitimate online retail websites (30 percent), fundraising (25 percent), identity theft (23 percent) and having their account taken over (22 percent).
The study showed the majority or 86 percent of the respondents have concerns about sharing personal information, citing invasion of privacy (76 percent) and fear of identity theft (73 percent) as top reasons.