Private credit bureau TransUnion said it sees a still improving economy, coupled with a tame inflation, creating conditions conducive to robust credit expansion.
After the Bangko Sentral ng Pilipinas (BSP) cut its policy rate to 5.25 percent on June 19, and with further reductions possible this year, “borrowing conditions are becoming more supportive for both consumers and lenders,” the company said.
“We are seeing a growing willingness among Filipinos to embrace credit as a tool for progress, but they want to know they can do so with confidence,” Peter Faulhaber, TransUnion Philippines president and CEO, said as he unveiled results of the firm’s third Credit Perception Index (CPI).
The Index tracks Filipino consumers’ awareness, trust and use of credit products, delivering fresh perspectives on the general population, the unbanked, and — for the first time — FinTech users.
GDP growth, inflation
TransUnion noted the country’s economic growth in the second quarter, achieved despite global headwinds and tariff uncertainties, has also lifted sentiment.
Gross domestic product (GDP) grew 5.5 percent in the second quarter, leading to a first-half expansion of 5.4 percent. The outlook for the rest of 2025 points to consumption-led growth helping the economy reach the lower end of the government’s 5.5 to 6.5 percent target.
Going forward, however, the BSP cautioned that the economy is likely to fall short of the 6 to 7 percent estimate for 2026, with tempered investment demand expected to drag productivity.
More essential to credit is inflation, which has remained low and “manageable.”
The eight-month average inflation rate stood at 1.7 percent as of August, though analysts warn it may have already bottomed out, with prices likely to accelerate toward 2 percent in the coming months, back within the BSP’s 2 to 4 percent target.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., expects inflation to average 1.8 percent this year.
Tool for progress
As a credit bureau, TransUnion consolidates the country’s credit information system and shares data with partner lenders to facilitate transactions. The company said its latest findings show Filipinos are approaching credit with more openness but also with caution.
“We are seeing a growing willingness among Filipinos to embrace credit as a tool for progress, but they want to know they can do so with confidence,” Peter Faulhaber, TransUnion Philippines president and CEO, said as he unveiled results of the firm’s third Credit Perception Index (CPI).
The Index tracks Filipino consumers’ awareness, trust and use of credit products, delivering fresh perspectives on the general population, the unbanked, and — for the first time — FinTech users.
“These findings can help financial institutions, lenders and policymakers shape strategies that support financial inclusion and sustainable growth,” TransUnion said.
This year’s CP Index showed the general population with a score of 73 out of 100, down one point from 2024 but reflecting stability. That sentiment was supported by a six-point rise in trust in credit products, Faulhaber added.
A growing number of consumers also expressed intention to borrow from formal credit channels such as traditional banks (up 15 percentage points), virtual banks (up 9) and credit cards (up 5).
Hesitations remain
Yet hesitations remain. High interest rates (cited by 59 percent) and fraud concerns (52 percent) continue to hold back wider adoption.
“While trust is improving, hesitations remain — stronger assurances through safer and more supportive credit environments are required to translate openness to real actions,” the company said.
“By ensuring that borrowing is both responsible and empowering, we can help turn openness into meaningful action that benefits households and the economy alike,” Faulhaber also said.
The CPI was conducted between March 27 and April 7 this year, surveying 1,165 consumers to assess Filipinos’ current attitudes and future openness to credit, examining their knowledge, trust and favorability toward credit and other financial products.
