Pinoys warming up to credit

But high rates, fraud fears hinder adoption

MANILA, Philippines — Filipinos are becoming more open to using credit, but concerns over interest rates and fraud continue to discourage wider adoption, according to the 2025 Credit Perception Index (CPI) released by TransUnion.

The Philippines’ CPI score stood at 73 out of 100 this year, only slightly lower than 74 in 2024, reflecting stable sentiment toward credit. Trust in credit products, however, climbed by six points, signaling stronger consumer confidence.

“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 said.

“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,” Faulhaber said.

Still, barriers remain. Across all groups surveyed like the general population, the unbanked and financial technology (fintech) users, high interest rates topped the list of deterrents, cited by at least half of respondents.

Fears of scams and fraud followed closely, with over 50 percent of both the general population and fintech users expressing concerns.

Security and trust emerged as key considerations for Filipinos when choosing financial institutions, cited by 58 percent of respondents, nearly matching convenience at 60 percent.

The index also showed encouraging progress among unbanked Filipinos, whose CPI score rose to 67 from 65 last year, narrowing the gap with the general population from nine points to six. Gains in trust (+9 points) and knowledge (+8 points) about credit products helped drive the improvement.

Knowledge of specific credit products surged among the unbanked, particularly mobile loans (+16 percentage points), payday loans (+15 ppt) and micro loans (+12 ppt).

Despite this progress, overall credit awareness among the unbanked (56 percent) still lags behind the general population (69 percent).

For the first time, the study also tracked fintech users, who posted the highest CPI score at 74, along with the highest level of general credit knowledge (71 percent).

Among Filipinos, e-wallets emerged as the most common first financial product, surpassing traditional bank accounts, especially among younger generations.

Nearly half of Gen Z (47 percent) and over a third of millennials (37 percent) started their financial journey with an e-wallet, compared to 40 percent of Gen X and 34 percent of baby boomers who opened bank accounts first.

“The strong performance of fintech users and the narrowing gap between the unbanked and the general population reflect encouraging momentum toward greater financial inclusion,” Faulhaber said.

“But addressing persistent barriers, especially fraud and security concerns, will be key to empowering more Filipinos to engage confidently with credit,” he added.

The TransUnion study, conducted from March 27 to April 7, 2025, surveyed 1,165 consumers nationwide.