TransUnion reports record-high credit perception in the Philippines

The Philippines’ credit perception index reached a record high of 75 out of 100, according to the fourth annual Credit Perception Index released by TransUnion. This increase from previous years was driven by improvements in consumer favorability toward credit products, increased trust in credit offerings, and higher self-reported knowledge of these products.

Despite the rising index, consumer financial confidence has softened due to inflation and cost-of-living pressures. While 64 percent of respondents expect their financial situation to improve in the coming months, this represents the lowest level of optimism recorded in the survey's history.

In terms of product adoption, e-wallets remain the most widely held financial tool at 80 percent. The study noted significant growth in ‘buy now, pay later’ services, which rose eight percentage points to 26 percent, and credit card ownership, which increased to 38 percent. TransUnion Philippines President and CEO Peter Faulhaber noted that the trend signals a maturing credit market as consumers show greater willingness to engage with formal financial institutions despite economic challenges.