An overwhelming 92 percent of respondents in the Philippines reported feeling financially stressed, slightly above the global average of 90 percent, according to findings of the Customer Barometer Report and Global Impact Report conducted by financial technology company Tala.
“In the Philippines, 92 percent of customers feel stressed about their finances, which isn’t entirely surprising. But that’s because income has not increased to the same extent that (prices of) goods have increased. In many instances, we see inflation at like 6, 7 percent, whereas the average wage growth is only at like 2 or 3 percent and that puts a lot more pressure onto people,” Gastl told reporters in a media briefing.
He said the biggest challenges faced by Filipinos are increased cost of living as indicated by 43 percent of customers and medical emergencies, as indicated by 34 percent.
To cope with these, Gastl said 52 percent of respondents have indicated that they want to generate extra income whether as a gig worker or with a permanent job; 38 percent have said they cut back on expenses while 27 percent indicated that they consider taking out a digital or online loan.
The Global Impact report, conducted in partnership with 60 Decibels, showed 89 percent of Tala customers indicated that they are using loans for non-business purposes of which 55 percent are for emergency expenses, 52 percent for household needs; 31 percent education and 22 percent for health.
About 23 percent of customers that use the loan for a mixed purpose like personal expenses.
Based on the report, Tala plays a pivotal role in helping borrowers meet these challenges as 42 percent said the financial company helped them pay bills on time; 29 percent used Tala loans to handle daily expenses and 28 percent were able to manage surprise costs.
The report said 9 in 10 borrowers who used Tala loans for business reported improved performance, while 47 percent experienced greater business stability.
Another 41 percent were able to expand operations, while 33 percent gained more confidence in managing and growing their businesses.
The report added 91 percent of borrowers say their quality of life improved as 93 percent now have better control over their finances.
A bigger proportion of 94 percent reported reduced financial stress, while 43 percent were even able to increase their savings.
The survey covered 281 Filipino customers, mostly from underserved sectors, between March and April.
Tala said the reports show how digital loans, when designed with accessibility and flexibility in mind, can empower people to better manage their finances, weather economic shocks, and improve their quality of life.
Since its launch in the Philippines, Tala has served 3.6 million customers, disbursing 24 million loans totaling P118 billion. Globally, the company has facilitated over 40 million loans worth more than $6 billion across three continents.
Gastl said Tala aims to increase its customer base to 5 million by the end of 2026.
