Credit perception in Phl hits record high as digital bank adoption rises

CEBU, Philippines — Filipinos are becoming more comfortable with formal credit and digital banking even as inflation and rising living costs weigh on their financial outlook, pointing to a gradual shift in borrowing behavior toward regulated financial institutions, according to TransUnion.

The Philippines’ Credit Perception Index rose to a record 75 out of 100 in 2026, the highest since the annual survey began in 2023. The increase was driven by gains in favorability, product trust and product knowledge, TransUnion said in its fourth annual Credit Perception Index released Aug. 19.

The findings suggest that consumers are developing greater familiarity and confidence in credit products despite a more challenging household economic environment.

“What stands out this year is that confidence in credit continued to improve even as consumers faced a more challenging economic environment,” said Peter Faulhaber, president and chief executive officer of TransUnion Philippines.

Financial-product adoption also continued to expand. eWallets remained the most widely held financial product, with ownership rising to 80 percent from 76 percent a year earlier.

Buy-now, pay-later services posted the strongest increase, with adoption climbing eight percentage points to 26 percent, while credit-card ownership rose seven points to 38 percent.

Personal-loan adoption edged up one point to 26 percent.

Financial outlook weakens

The improvement in credit sentiment contrasts with a deterioration in consumers’ expectations for their broader financial position.

Only 64 percent of Filipinos expect their financial situation to improve over the next three months, while 73 percent expect an improvement over the next year. Both figures fell three percentage points from 2025 and were the lowest recorded since 2023.

Inflation, higher living costs and energy prices remained the leading concerns affecting financial wellbeing.

Consumers, however, are responding by becoming more deliberate in managing their finances. Saving remained the most common planned action, cited by 86 percent of respondents, up two percentage points.

The share planning to seek financial education rose five points to 73 percent, while those intending to explore digital products and financial technology services climbed six points to 70 percent.

About 43 percent said they expect to borrow or use credit for purchases in the near future, up five percentage points and continuing an upward trend since 2023.

The shift indicates that weaker financial confidence has not translated into a retreat from formal financial products, with consumers instead seeking ways to manage financial pressures through savings, education and broader access to financial services.

Digital banks emerge

Digital banks are gaining particular momentum in future borrowing preferences.

Intent to borrow from digital banks rose 11 percentage points, the largest increase among financial institutions tracked by the survey. Traditional banks followed with an eight-point gain, while credit-card borrowing intent increased six points.

By contrast, the share of Filipinos intending to borrow from family and friends fell 11 points to 45 percent, the lowest level since 2023.

The shift coincides with rising familiarity with digital banking. More than half of Filipinos, or 52 percent said they use a digital bank.

Digital banks also posted the strongest improvement in consumer perceptions. Knowledge of digital banks climbed 15 points to 80 percent, while favorability increased 14 points to 79 percent, surpassing traditional banks at 78 percent and 76 percent, respectively.

Perceived safety rose 11 points to 84 percent, although traditional banks remained ahead at 88 percent.

The data point to a growing willingness among consumers to move financial activity from informal sources toward formal and technology-enabled institutions.

Trust remains key

Further expansion of credit adoption could hinge on improving consumers’ access to reliable financial information.

One in four Filipinos said they have difficulty finding information about credit and financial products. Among those consumers, 60 percent cited uncertainty over which sources to trust, while 44 percent said available information was too complex or confusing.

Transparency was the leading factor that could strengthen trust in financial products, cited by 56 percent of respondents. Fair or low interest rates followed at 53 percent, while strong security and fraud protection was cited by 52 percent.

Faulhaber said broader financial inclusion will require greater financial education, clearer product information and stronger consumer safeguards.

The 2026 Credit Perception Index surveyed 1,000 Filipino consumers from May 6 to May 26, examining their attitudes toward credit and their knowledge, trust and favorability toward financial products.

For lenders and financial-technology companies, the results point to an expanding opportunity in the formal credit market—but one increasingly dependent on consumer trust, transparency and the ability to translate digital access into responsible financial participation.