Global information and insights company TransUnion, which claims to be the first comprehensive private credit reference agency in the Philippines, has released its second annual Credit Perception Index.
This Index explores Filipino perceptions towards credit, factors influencing these perceptions, and broader implications for the nation.
According to a TransUnion statement, the study aims to foster discussions and actions to enhance credit literacy and financial inclusion across the Philippines.
The current TransUnion Credit Perception Index for the Philippines stands at 69, an increase of four points from the previous year. This rise indicates an improvement in concept knowledge, product knowledge, trust, and favourability towards credit products among Filipinos.
This year’s study reveals that 70% of Filipinos have a general understanding of credit. Among various credit products, Filipinos are most knowledgeable about instalment payments (82%), followed by credit cards (76%) and buy now pay later (BNPL) services (74%).
Knowledge of both credit cards and BNPL services has increased by five percentage points. Additionally, trust in these products has risen, with credit cards and BNPL services recording six and three percentage point increases in trustworthiness, standing at 76% and 74% respectively, just behind instalment payments at 80%.
The Index indicates favourability towards BNPL services and credit cards has also grown, increasing by five and nine percentage points, respectively.
Source: TransUnion Credit Perception Index Report 2024
Despite these improvements, knowledge gaps persist between the unbanked population and others. Currently, only 54% of unbanked Filipinos understand credit, a 16 percentage point deficit compared to the general population and a 29 percentage point gap compared to financial technology professionals.
This represents a widening of the knowledge divide, as the disparity between the general and unbanked populations was 11 percentage points last year.
Filipinos’ financial sentiment appears less optimistic this year. Nearly two fifths of the population estimate their total wealth to be at PHP 250,000 and below. Furthermore, 75% of surveyed Filipinos consider themselves lower middle class or below.
Optimism about financial improvement has declined, with fewer Filipinos (84%) expecting their financial situation to improve next year, a drop of six percentage points from 2023.
The number of Filipinos anticipating an increase in household income (74%) and those who can easily afford daily necessities (68%) have also decreased, by nine and four percentage points respectively.
Unbanked Filipinos are particularly struggling, with almost three quarters often finding themselves with limited money at the end of the month. This contrasts with 62% of the general population and 46% of those in the fintech sector.
Despite these uncertainties, there is a noticeable shift towards diversifying financial tools. Ownership of credit-based products and bank accounts has significantly increased. Credit card ownership has risen by 15 percentage points to 40%, and personal loans have increased by four percentage points to 25%.
Debit cards, savings accounts, and virtual bank accounts have also seen increases. Additionally, 70% of Filipinos expressed a willingness to explore digital products and fintech services in the next 12 months.

“We are delighted to see Filipinos proactively seeking ways to better manage their finances and unlock economic opportunities through responsible credit use,”
said Weihan Sun, Principal of Research and Consulting for Asia Pacific at TransUnion.
“However, disparities in credit knowledge still exist. Continued efforts are needed to further expand access and services to unbanked Filipinos, enabling them to realise the benefits of being financially included.”
The study also highlights a shift in credit perceptions, with decreases in negative sentiments towards credit products. More people now see credit cards as convenient, and BNPL services as helpful. Concerns about overspending due to credit products have decreased.
However, while fewer Filipinos associated credit cards with being risky, 46% are concerned about scams when using credit products. Over half of both the general and unbanked populations expressed concerns about scams and fraud.
To build trust in credit products, the TransUnion data indicates that financial institutions need to prioritise transparency, address security concerns, and establish a strong reputation. A quarter of Filipinos indicated that they would prefer more information about products, enhanced security measures, and trustworthiness of institutions.

“Upward trends in credit knowledge, product preferences, consumer trust, and favourability provide huge opportunities for lenders,”
said Yogesh Daware, Chief Commercial Officer at TransUnion Philippines.
“As consumers grow more aware and receptive towards credit products, the formal financial sector must undertake trust-building efforts to shift perception towards credit as an empowering force in the lives of Filipinos, thereby promoting financial inclusion and national development.”
Featured image credit: Edited from Freepik