Global information and insights company and the Philippines’ first comprehensive private credit reference agency, TransUnion, projects sustained momentum in the Philippine consumer credit market, driven by a resilient macroeconomic backdrop and robust household consumption.
“As inflation eases and retail activity picks up, both lenders and borrowers are poised to benefit from a more enabling environment, particularly for credit unserved and underserved consumers,” TransUnion said in a statement.
According to the Philippine Statistics Authority (PSA), the country’s Gross Domestic Product (GDP) grew by 5.4 percent year-over-year (YoY) in the first quarter of 2025, fueled by wholesale and retail trade, repair of motor vehicles, financial services, and manufacturing industries.
Further, headline inflation eased to 1.3 percent in May—the lowest level since 2019—restoring real purchasing power to Filipino households.
TransUnion said the retail industry continued to lead the consumption wave, with the wholesale and retail trade sector expanding by 6.4 percent in Q1 2025
According to TransUnion’s Q1 2025 Consumer Pulse Study, 37 percent of surveyed Filipinos planned to increase their retail purchases like clothing, electronics, durable goods over the next three months, while 29 percent expected to boost their discretionary spending like dining out, travel, entertainment.
“Lower inflation is creating a more supportive environment for consumer credit growth. We expect to see stronger repayment capacity among existing borrowers and higher demand among new-to-credit consumers, particularly in the small-ticket and revolving credit segments,” said Peter Faulhaber, President and CEO of TransUnion Philippines.
Declining inflation is expected to improve households’ real incomes, historically associated with better credit repayment behavior.
TransUnion predicts that lenders with strong risk management strategies may see marginal improvements in early-stage delinquency ratios over the next two quarters.
Meanwhile, rising retail sales are likely to translate into more credit card transactions, buy now, pay later (BNPL) usage, and small-ticket installment loans.
Close to two-thirds of surveyed Filipinos in the TransUnion Q1 2025 Consumer Pulse Study said that they have used BNPL, citing it was easy to apply as the primary reason for availing the service.
“At TransUnion, we’re deeply committed to fostering a more inclusive and resilient credit ecosystem. By equipping lenders with advanced analytics and empowering consumers—especially those that are new to credit—we help ensure that more Filipinos can access the financial tools they need to thrive and participate confidently in the economy,” said Faulhaber.
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including the Philippines.
It makes trust possible by ensuring each person is reliably represented in the marketplace.
Through acquisitions and technology investments, TransUnion has developed innovative solutions that extend beyond its strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics.
“As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world,” TransUnion said.
In the Philippines, TransUnion was the first comprehensive private credit reference agency (CRA) and has helped Filipinos to better understand and manage their personal finances for more than a decade.
