‘Mindanao consumers most open to credit’

MANILA, Philippines — Filipinos in Mindanao are showing the strongest appetite for credit among the country’s three major island groups, with more than half planning to borrow or use credit for purchases in the coming months, according to TransUnion.

The credit information company’s first regional breakdown of its 2026 Credit Perception Index (CPI) showed that 54 percent of respondents in Mindanao intend to use credit, compared with 42 percent in the Visayas and 40 percent in Luzon.

The Mindanao figure was also 11 percentage points above the national average of 43 percent.

The CPI measures how Filipinos view credit based on factors such as their knowledge of financial products, trust and overall favorability toward borrowing.

Mindanao also posted the highest CPI score among the three island groups at 77 out of 100, up three points from last year. The Visayas recorded a score of 75, unchanged from 2025, while Luzon, including the National Capital Region, improved by one point to 74.

Nationally, the CPI rose by two points to 75, the highest level since TransUnion launched the annual study in 2023.

Mindanao’s improvement was broad-based, with six of the seven components of the index recording gains. Product knowledge rose by seven points, favorability by six points, stigmas by five points and product trust by four points. Credit messaging and reservations each improved by three points.

“It’s encouraging to see credit perception improved across the country this year,” TransUnion Philippines president and CEO Peter Faulhaber said.

“Every island group held or improved its score, which tells us that consumer confidence and knowledge in credit is building broadly – not only in and around the capital. That kind of nationwide progress is a strong and positive signal toward greater financial inclusion.”

The findings also showed differences in consumers’ perceived financial standing across regions.

About 33 percent of respondents in Mindanao considered themselves lower income, higher than the 28 percent share for the general population. In the Visayas, 60 percent identified themselves as lower-middle income, well above the nationwide share of 47 percent.

Despite a more cautious economic environment, saving remained the top financial priority across all three island groups.

Around 86 percent of respondents in Luzon and Mindanao said they planned to save more over the next three months, while the share was slightly higher at 87 percent in the Visayas.

Digital finance use was widespread across the country, with 96 percent of respondents in the Visayas using at least one financial technology product, followed by Mindanao at 95 percent and Luzon at 92 percent. The national average stood at 93 percent.

Regional preferences, however, varied.

E-wallet adoption was strongest in the Visayas at 85 percent, above the national average of 81 percent. Mindanao, meanwhile, recorded the highest digital bank usage at 57 percent, compared with 52 percent nationwide.

“There is no one-size-fits-all approach to advancing financial inclusion. Understanding local needs and behaviors through more granular insights can help stakeholders develop solutions, education initiatives and engagement strategies that resonate best with communities,” Faulhaber said.

The 2026 CPI surveyed 1,000 consumers from May 6 to May 26. The annual study tracks how Filipinos perceive and engage with credit as well as the factors influencing their borrowing behavior and financial decisions.