CEBU, Philippines — The 2024 Credit Perception Index (CPI) by TransUnion Philippines revealed that while Filipino attitudes toward credit have improved, gaps persist, particularly outside the Greater Capital Region (GCR).
The CPI, launched in 2023, assesses credit perceptions based on attitudes toward credit and potential for change. This year, the overall Filipino CPI score rose to 69, but regional disparities remain, with GCR residents scoring higher at 77 compared to 58 among non-GCR residents.
Trans Union analysis revealed urban Filipinos are most informed about credit, with an average score of 79, significantly higher than suburban (57) and rural areas (48).
This trend reflects differences in knowledge, trust, and favorability across urban, suburban, and rural communities, with knowledge gaps widening in more remote areas.
According to Trans Union, credit product knowledge is notably higher in urban areas, where most respondents rely on social media (65 percent) and banks (59 percent) for information, while suburban and rural residents prefer personal networks like family and friends, potentially limiting their access to professional financial insights.
Financial confidence follows this pattern, with four in five urban Filipinos feeling financially secure and able to meet daily expenses, with 51 percent owning credit cards.
In contrast, credit card ownership drops to 30 percent in suburban areas and 21 percent in rural areas, where residents report lower financial confidence and higher monthly financial constraints.
Trust in credit products like credit cards also varies, with 80percent of urban residents viewing them favorably, versus 72percent in suburban and 69 percent in rural areas.
TransUnion emphasized the need for financial inclusion efforts, advocating for public and private sector collaboration to enhance credit education and access in rural areas.
Through partnerships with rural banks and information campaigns, TransUnion aims to foster economic resilience and support regional economies in promoting financial security across diverse Filipino communities.
This CPI study surveyed 1,000 consumers and 200 FinTech professionals, measuring knowledge, trust, and attitudes toward credit products. By conducting this study annually, TransUnion aims to monitor and address gaps in Filipino credit perceptions and promote informed, equitable financial growth nationwide.
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including the Philippines.