Manila, Philippines, August 19, 2026 – TransUnion (NYSE: TRU), a global information and insights company and the Philippines’ first comprehensive private credit reference agency, today released its fourth annual Credit Perception Index (CPI). The Philippines’ 2026 CPI score rose to 75 out of 100, the highest level recorded since the study was launched. The increase was mainly driven by improvements across three score factors: favorability (+4 points), product trust (+3 points) and product knowledge (+3 points).

TransUnion CPI Score and Score Factors* of the General Population

Introduced in 2023, the CPI examines how Filipinos perceive and engage with credit, including the factors that influence their attitudes, behaviors and financial decisions, with the goal of supporting broader financial inclusion in the Philippines.

Beyond the record-high CPI score, the study found that financial confidence softened amid inflation and cost-of-living concerns, even as consumers took proactive steps to strengthen their financial wellbeing. The findings also point to growing momentum for digital banks, shifting borrowing preferences toward formal financial institutions and clear factors that influence consumer trust.

“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 CEO of TransUnion Philippines. “With household budgets remaining under pressure, we might have expected consumers to become more hesitant. Instead, we're seeing greater trust, familiarity and willingness to engage with formal financial products. That signals a maturing credit market and creates new opportunities to expand access responsibly.”

This growing engagement was reflected in continued increases in financial product adoption. eWallets remained the most widely held product at 80%, up four percentage points [pp] from 2025, while buy now, pay later (BNPL) services recorded the strongest growth in adoption (+8 pp), reaching 26%. Credit card ownership also increased to 38% (+7 pp), with personal loan adoption reaching 26% (+1 pp).

Financial Products Owned by Filipions

Financial Confidence Softens, but Consumers Remain Proactive

While attitudes toward credit improved, Filipinos remained cautious about their broader financial outlook. Expectations of financial improvement fell to their lowest levels since 2023, with 64% of consumers expecting their financial situation to improve over the next three months and 73% over the next year, both down three percentage points from 2025. Inflation, rising living costs and energy prices remained the leading concerns affecting future financial wellbeing.

Future Financial Outlook in the Next 3 and 12 Months

In response to these pressures, Filipinos continued to take proactive steps to strengthen their financial wellbeing. Saving remained the most common planned action (86%, +2 pp), while more consumers also intended to access educational materials (73%, +5 pp), explore new digital products and financial technology (FinTech) services (70%, +6 pp), and use a broader range of financial products and solutions (66%, +6 pp). More than two in five (43%, +5 pp) also said they intended to borrow or use credit for purchases in the near future, continuing an upward trend observed since 2023.

“The survey reveals a shift toward more intentional financial decision-making among Filipinos,” Faulhaber noted. “While consumers are more cautious about their financial outlook, they are continuing to save, seek financial education and explore new financial products. These behaviors demonstrate how consumers are proactively adapting to ongoing cost pressures.”

Digital Banks Gain Momentum and Borrowing Preferences Continue to Shift

Credit continues to play an important role in helping Filipinos address everyday financial needs. Emergency expenses (59%), personal expenses (50%) and family expenses (45%) emerged as the most common reasons consumers used credit products and services.

At the same time, borrowing preferences continued to shift toward formal financial institutions. Future borrowing intent increased most for digital banks (+11 pp), followed by traditional banks (+8 pp) and credit cards (+6 pp), while intent to borrow from family and friends declined by 11 percentage points to 45%, reaching its lowest level since 2023.

Borrowing intent

The growing preference for digital banks appears to be supported by rising consumer familiarity and confidence. More than half of Filipinos (52%) reported using a digital bank. Digital banks also recorded the strongest gains in consumer perceptions, with knowledge increasing 15 percentage points to 80% and favorability rising 14 points to 79%, surpassing traditional banks on both measures (at 78% and 76%, respectively). Perceived safety of digital banks also climbed 11 points to 84%, second only to traditional banks at 88%.

Education is Key to Further Credit Adoption

Looking ahead, sustaining positive credit perceptions and supporting further adoption in the Philippines will require continued effort to build consumer knowledge and trust. Amid ongoing public and private initiatives to promote financial education, Filipinos reported that access to clear information still remains a challenge. One in four Filipinos (25%) reported difficulty finding materials related to credit and financial products. Among them, uncertainty about which sources to trust (60%) and information that was too complex or confusing (44%) were the most commonly cited barriers.

The study also revealed the factors most likely to strengthen trust in financial products and services. Transparency (56%), fair or low interest rates (53%), and strong security and fraud protection (52%) emerged as the leading trust drivers among Filipino consumers.

“Our Credit Perception Index underscores an important reality: consumers are increasingly seeking access to formal and digital financial services, but broader financial inclusion requires a coordinated effort to provide clear product information, strengthen financial education and safeguard consumer protection,” said Faulhaber.

“At its core, financial inclusion begins with information inclusion. Through responsible data sharing, we can help more consumers access the formal financial system and enable lenders to make better-informed decisions, paving the way for a more inclusive and financially resilient Philippines.”

In the Philippines, TransUnion advances financial inclusion through collaborations with financial institutions, regulators and wider industry stakeholders. The company helps lenders assess consumers with limited credit histories using alternative data and promotes industry-wide fraud prevention exchange through the Fraud Industry Council, launched in 2024. It also partners with the Bangko Sentral ng Pilipinas (BSP) and the industry to advance credit education and financial literacy.

TransUnion’s Credit Perception Index (CPI) is an annual study conducted exclusively in the Philippines that tracks how Filipinos perceive and engage with credit, the drivers and barriers influencing their behavior, and the implications for the broader financial ecosystem. The 2026 study surveyed 1,000 consumers from May 6-26, 2026, to assess Filipinos’ current attitudes and future openness to credit, examining their knowledge, trust and favorability toward credit and other financial products.

For more information and insights, please view the full report of the TransUnion Credit Perception Index.

*The CPI Score Factors

1. Reservations – Concerns or barriers that may discourage credit use.
2. Stigmas – Negative perceptions associated with credit.
3. Credit messaging – The likelihood to use credit after learning about its potential benefits.
4. Favorability – Overall positive perceptions of credit products.
5. Product trust – The perceived trustworthiness of credit products.
6. Concept knowledge – Self-reported knowledge of a defined concept of credit.
7. Product knowledge – Self-reported knowledge of specific credit products.

Higher scores are more favorable across all factors. Stigmas and Reservations are reverse-scored, meaning higher scores indicate fewer negative perceptions and reservations toward credit.

Manila, Philippines, July 8, 2026 – Filipino consumers remain broadly optimistic about their financial future, but rising living costs are increasingly reshaping how households spend, save and borrow. The Q2 2026 Consumer Pulse Study by TransUnion (NYSE: TRU) shows that while the majority continue to expect their household finances to improve in the coming year, confidence is being tempered by inflation and ongoing uncertainty surrounding the broader economic environment.

Optimism Broadly Holds, but Affordability Pressures Keep Households Cautious

Household income was broadly stable this quarter. While slightly below the 41% seen in Q2 2025, more than one-third (38%) of consumers still reported an income increase over the past three months. Meanwhile, 43% saw no change and only 19% experienced a decline, suggesting that although momentum has eased, overall, the majority of households are not slipping backward. Looking ahead, expectations for earnings remain strong, with 74% anticipating income growth over the next 12 months – more than the 73% recorded a year ago. This resilience continues to underpin a positive financial outlook, as 74% of consumers expressed optimism about their household finances in the year ahead.

Despite this optimism, signs of financial strain persist. Inflation remains the top concern, cited by 84% of consumers in their top three biggest worries affecting household finances in the next six months, and will likely persist as the pass-through effects of the oil price shock materialize. Other key pressures on household finances include job security (54%) alongside recession and interest rates (both at 44%). While data from the Philippine Statistics Authority (PSA) show inflation easing from 7.2% in April to 6.8% in May 2026, the May rate remains among the highest for that month since 2021¹. Affordability pressures are evident, with TransUnion’s research showing nearly half of consumers (45%) expecting to be unable to fully pay at least one of their current bills or loans, slightly up from 44% in Q2 2025.

“Filipino households are entering the second half of the year optimistic but clear-eyed. They expect their incomes to stay resilient, which keeps confidence broadly intact – yet they feel the weight of inflation on everyday costs, such as rice prices, and uncertainty over upcoming financial commitments amid broader global economic headwinds,” said Weihan Sun, senior director of research and consulting for Asia Pacific at TransUnion.

Spending and Saving Grow More Cautious, with Rising Reliance on Credit

In the face of persistent inflation and rising living costs, households are responding with deliberate caution – prioritizing essential spending and actively adjusting budgets amid ongoing cost pressures. Over half (55%) of consumers reported reducing discretionary spending like dining out, travel and entertainment in the last three months, up from 47% in Q2 2025. At the same time, they reported strengthening financial safety nets: 49% added to their emergency savings, up from 45%, while fewer (8%) drew on retirement funds, down from 12% a year ago.

As part of this shift, consumers are also balancing financial resilience with a growing reliance on credit. Reported use of available credit in the last three months rose to 17% from 15% last year, and looking ahead, 51% expect their bills and loan payments to increase over the next three months, slightly more than 49% in Q2 2025.

“Across these behaviors – from trimming discretionary spending to building savings while leaning on credit more selectively – what stands out is how intentional these choices are. Filipino households are not simply responding to pressure, but prioritizing what matters and being deliberate with every peso, using credit with intention to smooth day-to-day cash flow and bridge spending gaps. This shift toward more active financial management is an encouraging sign of growing financial maturity,” added Sun.

Credit Demand Stays Strong, but Cost and Eligibility Barriers Stall Follow-Through

As reliance on credit increases, it remains central to how Filipinos achieve their financial goals: more than half (58%) see access to credit and lending products as extremely or very important, unchanged from Q2 2025. At the same time, accessibility remains steady, with 44% reporting sufficient access – which is also consistent with a year ago – although almost one-quarter (24%) disagree.

Credit appetite stayed high, with nearly half (48%) of Filipino consumers planning to apply for new credit or refinance existing credit in the next year. Among those who said they would apply, growth is driven by everyday products such as personal loans, rising from 45% in Q2 2025 to 52%, and credit cards, increasing from 31% to 35%. In contrast, demand for mortgages softened to 12% from 17% a year earlier.

Despite robust interest in credit, many consumers continue to encounter obstacles along the borrowing journey. Three in five (60%) of those who considered credit applications abandoned their plans, up from 57% a year ago. The primary reason for abandoning applications was the cost being too high (35%), followed by finding an alternative funding source (32%) and income or employment status (28%).

“More Filipinos are turning to credit for the flexibility it offers, especially in uncertain times. However, when six in ten of those who considered borrowing walk away from a credit application, the issue is more friction than intent. The opportunity for lenders is to make credit more inclusive, so responsible borrowers are not lost to cost, complexity or eligibility barriers, while consumers can play their part by maintaining healthy credit habits. That is how we turn credit access into lasting financial resilience,” said Sun.

TransUnion's Consumer Pulse Study surveyed 961 adults from April 29 to May 19, 2026. This quarterly survey examines shifting consumer attitudes and behaviors based on the dynamics of income, debt, and identity theft. Respondents ranged from Gen Z, 18-29 years old; Millennials, 30-45; Gen X, 46-61; and Baby Boomers, age 62 and above. By capturing insights across generations and financial situations, the study helps promote greater financial inclusion by informing policies, products and education efforts that meet the evolving needs of all consumers.

For more information, please view the full report of the TransUnion Q2 2026 Consumer Pulse Study.

¹ Summary Inflation Report Consumer Price Index, May 2026, Philippine Statistics Authority

Avishek has more than 17 years of experience in global banking, combining strong international exposure across Hong Kong, India and the United Kingdom with extensive cross‑regional collaboration spanning Asia Pacific, Europe, the Middle East and Africa (EMEA), and the Americas. Prior to this role, he served as Senior Vice President at HSBC, where he led the unsecured lending business across nine Asian markets. Avishek holds a master’s degree in statistics from the Indian Statistical Institute in Kolkata.

He brings deep expertise in advanced analytics and data science leadership, with a proven track record of applying emerging data technologies to shape product strategy and deliver measurable outcomes. This background in data innovation aligns closely with TransUnion’s evolution from a traditional credit reference agency to a trusted information and insights partner, enabling organizations to view consumer identity holistically through diverse data assets and helping them to make informed decisions with confidence, which forms the foundation of trust in the modern economy.

This appointment marks a significant milestone for TransUnion Asia Pacific, as it brings together regional analytics capabilities – including Data Science and Analytics (DSA), Data Asset Management (DAM) and Data Strategy (DS) – into a more integrated structure under one regional leadership model. Together, these efforts will continue to accelerate TransUnion’s analytics value creation and reinforce its commitment to the responsible and secure use of data.

“As the role of information and data continues to grow in enabling robust and evidence‑based financial decisions in today’s economy – particularly amid persistent global uncertainties, rising fraud risks and increasing regional integration – the capabilities to manage, analyze and translate data into trusted and meaningful insights has never been more important,” said Marie Claire Lim Moore, Asia-Pacific Regional President and Hong Kong CEO at TransUnion. “Data and analytics are central to TransUnion’s continued evolution into a trusted information and insights partner powered by identity-based intelligence. We are pleased to welcome Avishek, whose deep expertise in data-driven transformation and strategic analytics will further strengthen our ability to deliver value beyond credit, supporting businesses and consumers in making more confident, informed decisions and advancing our mission of Information for Good.”

Commenting on his appointment, Avishek said: “It is an honour to join TransUnion at a time when trusted data and insights are increasingly vital in helping financial institutions, businesses and consumers navigate a rapidly evolving environment. TransUnion has built a strong platform that harnesses data responsibly to drive transparency and resilience. The integration of our regional data strategy – encompassing effective sourcing, disciplined standardization, advanced analytics and rigorous quality management – underpins a robust, secure and well-governed data ecosystem. I look forward to building on this foundation to deliver meaningful impact for business, individuals and the broader economy.”

Manila, Philippines, May 20, 2026 – A new TransUnion (NYSE: TRU) analysis found that fraud remains a prevalent reality in the Philippines. The country’s suspected digital fraud rate¹ stood at 4.1% in 2025, exceeding the global level of 3.8% for the sixth consecutive year. Suspected digital fraud attempts refer to activities flagged by TransUnion clients as fraudulent indicators and in violation of corporate policy. It draws on insights from TransUnion’s global intelligence network, spanning billions of transactions across tens of thousands of websites and apps.  

This heightened level of fraud was also mirrored in consumer sentiment. Nearly three‑quarters (72%) of surveyed Filipino consumers reported being targeted by digital fraud attempts (online, email, phone and text messages) between August and December last year, compared with 53% globally². This places the Philippines among the markets with the most widespread digital fraud exposure across 18 countries and regions surveyed by TransUnion.

Additional insights from TransUnion’s H1 2026 Top Fraud Trends Report also highlighted the financial impact of digital fraud, with more than one-third (38%) of Filipino consumers reporting losing money from digital fraud last year. Despite widespread exposure, however, the consumer reported financial losses in the Philippines remained comparatively lower. The median reported fraud loss last year was USD850 (approximately PHP50,000 in local currency)³, below the global median of USD1,671 (approximately PHP98,000)³.

“Our data indicates that fraud in the Philippines is driven more by scale than severity,” said Yogesh Daware, chief commercial officer at TransUnion Philippines. “While a significant proportion of Filipino consumers report being targeted through online, email, phone call or text messaging fraud attempts, the typical financial loss per incident is relatively lower compared to other markets. These insights point to a landscape characterized by more frequent, lower-value scams across digital channels and industries, rather than isolated big-ticket cases. The breadth and frequency of these incidents make digital fraud a persistent concern.”

Higher Digital Engagement Drove Greater Fraud Risk Exposure, Concentrated at the Account Login Stage

As one of the world’s most digitally engaged markets with high internet penetration and mobile‑first connectivity, a majority (91%) of Filipinos reported conducting at least part of their account management activities online – such as address changes, account name updates and other modifications. This high level of engagement and reliance on digital channels increases exposure to fraudsters and related vulnerabilities.

Reflecting this heightened risk, the most reported fraud schemes among Filipinos who said they were targeted with digital fraud were phishing (fraudulent emails, websites, social posts, QR codes designed to steal data) at 45%, followed by smishing (fraudulent text messages intended to trick consumers into revealing information) at 38% and third-party seller scams on legitimate online retail websites at 28%.

Given the prevalence of fraud schemes aimed at stealing sensitive data and personal information, suspected digital fraud risk was largely concentrated at the initial identity verification and authentication stages across the digital consumer lifecycle. In the Philippines, fraud risk was highest at the account login stage (6.1%) – which is significantly above the global rate of 4.3% – followed by account creation (4.5%) and financial transactions (1.1%).

"With fraud risk in the Philippines highest at the account login stage, and phishing and other scams primarily focused on stealing credentials, fraud in the Philippines is fundamentally an identity issue. Fraudsters rely on impersonation and synthetic identities to evade detection, while AI-powered tactics make these attacks easier to scale and harder to identify. This raises critical questions for both businesses and consumers: whether organizations can reliably verify the person on the other side of a digital interaction and whether consumers can effectively protect their personal information," said Daware.

Logistics Was the Industry That Recorded the Highest Suspected Digital Fraud Rate From the Philippines in 2025

Based on TransUnion’s analysis, the logistics sector recorded the highest suspected digital fraud rate in 2025 for attempted transactions where the consumer was in the Philippines, at 8.5% – up from 6.0% a year earlier – highlighting logistics as a growing area of fraud risk in the country. Recent cases of fake delivery and cash-on-delivery (COD) scams, in which victims are induced to pay for items they did not order or that are misrepresented, underscore how fraudsters are increasingly exploiting delivery and last‑mile touchpoints.

After logistics, the insurance sector recorded the second‑highest suspected digital fraud rate in the Philippines last year at 7.6%. This was followed by the communities sector, which encompasses online dating platforms, social media sites and online forums, at 5.8%, reflecting continued fraud activity in digital environments driven by user interaction and identity‑based engagement.

Logistics Saw the Highest Suspected Digital Fraud Rate in 2025 From the Philippines, Followed by Insurance and Communities

Source: TransUnion global intelligence network

Recognizing the need for a collective defense against fraud across different industries and all segments of the society, TransUnion Philippines pioneered an anti-fraud task force in the country through the Fraud Industry Council (FIC), launched in November 2024. The FIC brings together leading financial institutions and key industry players to strengthen businesses and consumer protection through coordinated fraud intelligence sharing – a collective approach to an industry-wide challenge.

"The latest data from TransUnion shows that fraud risks are present across sectors, affecting consumers at multiple points in their digital journeys. In addition to strengthening digital onboarding, device validation and network intelligence within individual organization, this underscores the need for collaborations beyond single entities. Through the Fraud Industry Council, we are bringing industry leaders together to share intelligence, enhance safeguards and better protect Filipino consumers through a coordinated, collective approach. Ultimately, this effort is about enabling people to transact with confidence, supporting businesses growth and strengthening trust across the country’s digital economy,” said Daware.

TransUnion came to its conclusions about digital fraud based on intelligence from its array of fraud prevention solutions. To learn more about how TransUnion fraud prevention solutions can help businesses avoid fraud and prevent fraud losses, click here.

Specific country and regional data in the report includes Botswana, Brazil, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Hong Kong, India, Kenya, Mexico, Namibia, Nicaragua, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom, the United States and Zambia. Download the TransUnion H1 2026 Top Fraud Trends Report for more information and insights about the global fraud trends.

¹ Suspected digital fraud attempts reflect those which TransUnion clients determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon client investigation, or 4) a corporate policy violation upon client investigation. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represent every country worldwide and not just the select countries and regions.

² TransUnion surveyed 821 consumers in the Philippines from Nov. 20 to Dec. 8, 2025 as part of the global survey of 12,730 consumers in 18 countries and regions.

³ Based on the exchange rate on Dec. 29, 2025 when calculated for the report.

Manila, Philippines, May 11, 2026 – With more Filipinos engaging in formal financial products, such as loans and credit cards, credit education is increasingly essential to support the healthy development of the broader ecosystem. As a trusted information and insights partner dedicated to helping financial institutions and consumers make informed decisions, TransUnion (NYSE: TRU) continues to advance its credit education advocacy. These efforts seek to deepen understanding of credit reports and credit scores, and to promote the robust, responsible use of credit information across the financial services industry.

Empowering Financial Institutions Through Credit Engage

In TransUnion Philippines’ latest Consumer Pulse Study, 56% of consumers indicated plans to apply for new credit or refinance existing credit this year — the highest level recorded since the start of 2025. In response to a rapidly expanding group of credit users, TransUnion’s Credit Engage initiative, launched late last year, is designed to provide financial institutions with deeper insight into credit reports, credit scores, and the key factors that influence them in an engaging workshop format. The program focuses on strengthening understanding of how credit data is structured, maintained and reflected, as well as the important collaboration among financial institutions, credit reference agencies and consumers to uphold data accuracy through established correction protocols. It equips lenders with a better knowledge of the consumers they serve, ultimately empowering more informed and consistent use of credit information within existing processes for enhanced risk management and delivering more tailored consumer services.

After a successful launch, TransUnion conducted Credit Engage sessions with partner institutions including Metrobank, RCBC and Maya Bank. These sessions provided a structured forum for discussion on credit reporting and data maintenance, covering topics such as the main components of consumer credit reports, key drivers of credit scores and data quality considerations.

By reinforcing a shared understanding of how credit information works in practice, Credit Engage supports consistent interpretation, application, maintenance and updates of reported data. This deeper alignment contributes to data-driven credit decision‑making and promotes greater confidence in the use of credit information. The participating lenders have demonstrated a clear commitment to responsible lending and ongoing education. These engagements strengthen industry collaboration and will help drive greater financial inclusion across the Philippines.

Expanding Access to Credit Education for Consumers

Alongside its engagement with financial institutions, TransUnion recognizes the importance of making credit education more accessible to the public. As individuals increasingly engage with formal credit products, clear and reliable information plays an important role in supporting responsible financial behavior.

As part of this advocacy, TransUnion partnered with the Bangko Sentral ng Pilipinas (BSP) to develop a credit education module for the BSP E‑Learning Academy (BELA). Set to be available as early as this year, the module will explain how credit scores work, the factors that influence them, and why regular monitoring of credit reports matters. This partnership marks TransUnion as the first credit reference agency in the country to collaborate with the BSP on BELA.

“We are seeing a steadily expanding credit market in the Philippines, with more consumers now actively engaging in the formal credit ecosystem. As participation grows, strong credit education becomes even more critical — enabling lenders to make informed, confident decisions and empowering consumers to manage and use credit responsibly. Both elements are essential to ensuring healthy and sustainable economic development,” said Peter Faulhaber, President and CEO of TransUnion Philippines. “At TransUnion, we are committed to providing accessible, data‑driven credit education for institutions and individuals alike. We believe that shared understanding, transparency and trust will continue to underpin a robust credit environment that supports long‑term economic progress.”

Together, initiatives such as Credit Engage and TransUnion’s collaboration with the BSP reflect the company’s continued commitment to promoting credit literacy and trust. As financial services continue to evolve, knowledge of credit reporting and the importance of accurate, well‑maintained credit data remains essential for financial institutions and consumers.

Metrobank

RCBC

Maya Bank

TransUnion launched the Credit Engage initiative to empower more informed and consistent use of credit information for enhanced risk management and tailored consumer services. Partner institutions such as Metrobank, RCBC and Maya Bank joined the sessions, reinforcing their commitment to responsible lending and financial inclusion.

Peter Faulhaber, President and CEO at TransUnion Philippines and Jason Crasto, Country Manager for Mastercard in the Philippines

Manila, Philippines, March 10, 2026 – Following a successful pilot program, TransUnion Philippines, an information and insights company, and Mastercard (NYSE: MA), a global technology company in the payments industry, are working together to give financial institutions a broader and more timely view of consumers’ financial behavior.

By combining TransUnion’s comprehensive credit, identity and alternative data insights with Mastercard’s aggregated transaction intelligence, the collaboration supports stronger decision‑making, more meaningful customer engagement for lenders, and sustainable growth across the Philippines’ lending ecosystem.

TransUnion, the Philippines’ first private comprehensive credit reference agency, helps institutions better understand consumers’ likelihood and ability to maintain credit commitments – even those who may not have held a credit product before. Mastercard’s behavioral signals, which are based on aggregated indicators of spending activity, further complement and supplement these insights, enhancing lenders’ understanding of consumers’ financial capacity and risk.

For lenders, the collaboration will strengthen how institutions identify and engage credit‑ready consumers. New‑to‑Credit (with no credit history) and thin‑file (with minimal credit history) consumers can be difficult to assess using traditional information alone, as there may be insufficient data to support confident decisioning. The enriched insights generated will allow lenders to reduce friction in the application review process, and better tailor and align product offerings with consumers’ demonstrated financial patterns.

The combined view helps financial institutions distinguish between applicants with similar profiles, understand emerging opportunities within existing portfolios, and engage customers appropriately based on wider financial activity.

For consumers, the outcome is a decision process that is more accurate, timely and reflective of their financial behavior, resulting in credit experiences that feel more personalized, accessible and suited to their personal circumstances. Ultimately, this will contribute to greater financial inclusion, enabling Filipinos to access more economic opportunities.

In addition to the expanded data coverage, Mastercard — through its consulting services — has collaborated with TransUnion to enhance data propositions for financial institutions, portfolio margin optimization and strengthened collections strategies.

“This collaboration builds on TransUnion’s existing strengths in alternative data and analytics,” said Peter Faulhaber, President and CEO at TransUnion Philippines. “By enriching our existing insights with Mastercard’s behavioral data, we’re helping institutions make more confident decisions while ensuring more Filipinos, especially those with limited credit histories, can be offered fair and relevant access to the financial system.”

“Mastercard is committed to strengthening the foundations of a more inclusive financial ecosystem,” said Jason Crasto, Country Manager for Mastercard in the Philippines. “Our collaboration with TransUnion brings together complementary data assets that help financial institutions see a fuller picture of everyday economic participation. This combined intelligence enables lenders to design responsibly, grow sustainably and extend credit opportunities to people who have historically been underserved.”

At the center are Peter Faulhaber, President and CEO at TransUnion Philippines, and Jason Crasto, Country Manager for Mastercard in the Philippines. With them (from left) are TransUnion leaders Nolan Empalmado, Business Head, Financial Services; Rowena Cristobal, Director, Product Management; Amrita Bhattacharya, Chief Operating Officer, Asia-Pacific; and  Yogesh Daware, Chief Commercial Officer, together with Mastercard executives Tamish Dhamani, Director, Credit Risk Business Development, Asia-Pacific; Arlene Magtira, Vice President, Account Management, Philippines; and Pradeep Mathew, Director, Product Management Asia-Pacific

Manila, Philippines, February 19, 2026 – TransUnion (NYSE: TRU), a global information and insights company and the Philippines’ first comprehensive private credit reference agency, today released additional findings from the 2025 Credit Perception Index (CPI). The data reveals a nationwide rebalancing of credit sentiment as Filipinos outside the Greater Capital Region (GCR) show rising financial literacy and openness to credit products, reshaping how consumers engage with credit across the country. For purposes of the study, GCR refers to the economic zone composed of Metro Manila, Central Luzon, and Calabarzon. 

The CPI score — a combined measure to capture Filipinos’ knowledge, trust, and favorability toward credit and other financial products — among those residing outside the capital rose from 71 in 2024 to 73 in 2025, matching the 73 score of Filipinos based in the capital. This upward trend was driven by sizable gains in product trust (+11 points) and product knowledge (+6 points), likely reflecting sustained efforts by the public and private sectors over the years to expand credit awareness, education and access across the country. 

“Filipinos outside the capital region are making notable strides, driven by sizable gains in both knowledge and trust of credit products,” said Peter Faulhaber, President and CEO of TransUnion Philippines. “This progress shows that more consumers are ready and willing to participate in the credit economy, reflecting a meaningful shift in how Filipinos understand and engage with financial products.” 

Borrowing Preferences Differ Across Regions 

Alongside improved credit perception, intent to use credit is now comparable between consumers within and outside the capital. According to TransUnion’s 2025 CPI, close to two in every five Filipinos (38% in the capital and 39% in other regions) expressed a willingness to use credit to make purchases in the next three months from the time of the study. However, differences emerge in attitudes towards the various products. 

Among respondents from the capital region, 44% expressed interest in using credit cards, compared with 36% from those outside the capital. Similarly, 40% indicated preference for borrowing from traditional banks vs 37% beyond the capital. 

In contrast, Filipinos residing outside the capital region show greater openness to non-conventional financial solutions than capital residents, such as mobile loan apps (33% vs 27%), money lending services (29% vs 21%), and micro loan providers (22% vs 17%) — options that often offer a higher level of convenience and speed for consumers in areas usually with fewer traditional banking touchpoints. 

These preferences align with reported rising product knowledge of small-ticket credit products among those based outside the capital, where perceived understanding of mobile loans (65% vs 60%), micro loans (54% vs 44%) and payday loans (54% vs 49%) are notably stronger than among those living in the capital. 

Growing Openness to Financial Learning 

Strong appetite for financial education may explain the improved credit knowledge and thus, trust among Filipinos outside the capital. The 2025 CPI shows that Filipinos outside the capital have a clear demand for financial learning. More than two-thirds (70%) of respondents from these areas expressed willingness to access educational materials to improve their finances, while a majority (65%) also reported strong openness to exploring new digital financial products and services. 

In terms of education channels, social media remains the leading source of information on both financial and credit products for consumers within and outside the capital. Sixty percent from each group said they would like to learn about financial products via social platforms and a similar pattern appears for credit products, with 59% and 58% from the capital and beyond, respectively, sharing this preference. 

In response to this strong appetite for financial education in the country and the preference for digital channels, TransUnion’s new partnership with the Bangko Sentral ng Pilipinos (BSP) serves as a timely initiative to deliver digital learning materials anywhere, anytime through multiple touchpoints. 

The upcoming BSP E-Learning Academy (BELA) credit education module — soon accessible through the BSP Mobile App — will provide Filipinos nationwide with practical and engaging resources on understanding and managing credit. This initiative makes TransUnion the first credit reference agency in the Philippines to collaborate on the BSP’s digital BELA program to promote credit education, directly advancing financial literacy and financial inclusion among Filipinos while reshaping the country’s credit landscape. 

“What we see in the latest TransUnion CPI is clear: interest and readiness for credit are rising well beyond the capital region, creating both an opportunity and a responsibility for the industry to expand access and education,” added Faulhaber. “TransUnion remains committed to driving this progress by partnering with financial institutions to broaden credit access, while delivering credit education initiatives that empower consumers across the country to manage credit responsibly.” 

¹ The 2025 CPI score computation was refined to provide a more holistic and robust view of Filipino consumers and capture shifting perceptions and behaviors. The same formula was applied retroactively to enable year-over-year comparisons.

Manila, Philippines, December 11, 2025 – Filipino households are closing 2025 on firm financial footings, navigating a still-shifting economic environment with a blend of optimism and restraint. The Q4 2025 Consumer Pulse Study by TransUnion (NYSE: TRU), shows that while consumers continue to feel the pressure of daily expenses, they are adapting with a more deliberate approach to both spending and credit use.

Income stability remains a defining theme this quarter. Over two in five consumers (42%) reported an income increase in the past three months, while 41% saw no change, suggesting that while momentum has eased, households are not slipping backward. More importantly, consumers are looking ahead with confidence.

Three in four Filipinos (75%) expect their income to rise over the next 12 months and eight in ten (80%) are optimistic about their household finances for the year ahead. Together, these trends reflect a picture of resilience and steady control. Filipinos are learning to operate within tighter margins, managing pressures without losing confidence in their financial trajectory.

Cautious spending reflects a balanced mindset

Even with improving sentiment, caution remains the dominant feature of household spending. Inflation for everyday goods continues to be the top concern (81%), followed by job stability (57%) and interest rates (45%) — the same priorities Filipinos have held since 2024. This consistency suggests that consumers are budgeting with long-term challenges in mind, not short-term shocks.

Spending behavior also reflects this balance between confidence and caution. Nearly half (47%) of households have scaled back discretionary activities such as dining out and travel. One in four (25%) cut back on digital services, while another quarter (25%) dropped subscriptions or memberships altogether. Half of Filipinos (50%) also expect to spend less on holiday shopping compared to last year, showing more deliberate spending even during traditionally high-consumption periods.

Looking ahead, consumers expect further shifts in their cost structure: 47% foresee rising bills and loan payments next quarter, 42% expect medical costs to increase, and 36% anticipate higher retail spending. Yet, only a minority (27%) plan to increase spending on large purchases like appliances or vehicles. In essence, instead of pulling back from economic activity, Filipinos are redefining what “smart spending” looks like in a high-cost environment.

“The trend mirrors the wider economy — still expanding, but at a calmer pace after two years of rebound,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion. “Consumers are managing spending more pragmatically, especially with Filipinos looking to spend less this holiday season compared to last year. It’s a sign of practical optimism. People are still participating in the economy but are doing so on their own terms and with greater financial intent.”

Credit access remains stable as borrowing becomes more intentional

As households stabilize their finances, their attitudes toward credit are evolving. While close to three in every five Filipinos (58%) say access to credit is very important for achieving their financial goals, this marks a slight dip from the same time last year, hinting that consumers are depending less on borrowing for immediate needs and more for deliberate, planned financial actions.

Confidence in credit access remained steady with 42% saying they have sufficient availability. Gen X (47%) and Millennials (46%) remain the most confident. However, the more significant shift lies in how people choose to borrow. Intent to apply for or refinance credit fell to 47% from 53% last year, and most planned borrowing now leans toward smaller, more flexible products such as personal loans (49%) and buy now, pay later (BNPL) (35%) arrangements.

Even abandoned applications reduced, dropping to 56% from 64% last year, though high borrowing costs (31%), possible rejection due to income or employment status (28%), and lengthy processing times (24%) still create friction. Overall, the data paints a maturing market: credit remains available, but Filipinos are making decisions with more scrutiny and financial self-awareness than before.

“We’re seeing a real shift in how Filipinos view credit. It’s moving from being a necessity to becoming a choice,” added Sun. “Credit remains available, but consumers are weighing their options more carefully, guided by how secure they feel about their jobs and savings. It’s a more thoughtful use of credit as a tool, not a crutch. As this mindset continues to evolve, it’s equally important for consumers to stay informed by regularly monitoring their credit health.”

Empowering Filipinos with accessible credit education

Recently, TransUnion announced its partnership with the Bangko Sentral ng Pilipinas (BSP) to introduce an interactive credit education module on the BSP E-Learning Academy (BELA) to help consumers understand and manage their credit scores. These resources will provide practical guidance on building and maintaining healthy credit profiles, equipping Filipinos with the knowledge to make informed financial decisions. The modules are set to be available starting next year.

This milestone marks the first collaboration between BSP and a credit reference agency on financial education initiatives through BELA in the Philippines, underscoring a shared commitment to financial literacy and inclusion. By delivering accessible, engaging content, the initiative aims to strengthen financial resilience and unlock better opportunities for millions of Filipinos.

“As more Filipinos take a more intentional approach to their finances, ensuring they have the right guidance and support will be key to helping them build long-term financial resilience,” said Sun.

TransUnion’s Consumer Pulse Study surveyed 961 adults from September 25 to October 15, 2025. This quarterly survey examines shifting consumer attitudes and behaviors based on the dynamics of income, debt, and identity theft. Respondents ranged from Gen Z, 18-28 years old; Millennials, 29-44 years old; Gen X, 45-60 years old; and Baby Boomers, age 61 and above. By capturing insights across generations and financial situations, the study helps promote greater financial inclusion by informing policies, products, and education efforts that meet the evolving needs of all consumers.

For more information, please view the full report of the TransUnion Q4 2025 Consumer Pulse Study.

Key signatories gathered at the Bangko Sentral ng Pilipinas’ (BSP) 2025 Financial Education Stakeholders’ Congress for the signing of the Memorandum of Agreement (MOA) between the BSP and TransUnion Philippines. 
(L-R) Natassia Fortea, Legal Counsel, TransUnion Philippines; Peter Faulhaber, President and CEO, TransUnion Philippines; Deputy Governor Bernadette Romulo-Puyat, Regional Operations and Advocacy Sector, BSP; and Managing Director Charina De Vera-Yap, Financial Inclusion and Consumer Empowerment Sub-sector, BSP 

Manila, Philippines, November 25, 2025 – Global information and insights company TransUnion (NYSE: TRU), the Philippines’ first comprehensive private credit reference agency, announced the signing of a Memorandum of Agreement (MOA) with the Bangko Sentral ng Pilipinas (BSP) to develop and implement a national-level credit education module on the BSP E-Learning Academy (BELA). Set to be available to all Filipinos as early as next year, the module marks TransUnion as the first credit reference agency in the country to collaborate with the BSP on financial education initiatives through BELA to promote financial literacy.

The formal MOA signing ceremony was held as part of the BSP’s 2025 Financial Education Stakeholders’ Congress on November 18, 2025. The interactive e-learning module, "Understanding and Managing Your Credit Score", will be housed on BELA – an online learning management system designed to educate Filipinos on financial literacy in the digital age. The course is interactive, featuring engaging slides, scenario-based exercises and video materials to empower Filipinos of all ages with the necessary knowledge to responsibly navigate the credit ecosystem.

A New Resource for Financial Empowerment

This collaboration represents a significant milestone in TransUnion's ongoing commitment to advancing financial literacy and financial inclusion in the country. It directly responds to the strong consumer demand for financial education, as data from TransUnion’s 2025 Credit Perception Index (CPI) showed that 68% of Filipinos aim to access more educational materials to improve their finances. With additional CPI data pointing to social media as a preferred channel for three in every five Filipinos (60%), complementary e-learning materials will also be shared on TransUnion’s own social media platforms to engage with broader Filipinos through multiple touchpoints.  

“TransUnion believes that access to credit begins with access to credit knowledge. This partnership with the BSP is a monumental step forward in our shared mission to champion financial literacy and financial inclusion across the nation,” said Peter Faulhaber, President and CEO, TransUnion Philippines. “By introducing this interactive e-learning module on the BELA platform, we are empowering Filipinos with insights needed to build and maintain a healthy credit profile — unlocking better financial opportunities and establishing a strong foundation for a more financially resilient population, in line with the Philippines’ national goal of achieving upper-middle-income status.”

During the event, TransUnion Philippines was also recognized as a “Promising Financial Education Partner” for its ongoing contributions in advancing financial inclusion through education and collaboration.

The "Understanding and Managing Your Credit Score" course will be available to all Filipinos via BELA online and through the BSP Mobile App. Download today from the App Store or Google Play Store.

Manila, Philippines, November 4, 2025 – Fraud continues to take a heavy toll on businesses and consumers in the Philippines. According to TransUnion’s (NYSE: TRU) newly released H2 2025 Update to the Top Fraud Trends Report, Philippine business leaders said their companies lost the equivalent of 6% of their annual revenues to fraud in the past year, representing an estimated PHP 4 trillion among the 200 business leaders surveyed.

Although slightly below the global average of 7.7%, this figure highlights the significant financial and operational strain fraud continues to impose on organizations of all sizes. The scale of this challenge is reflected in the level of concern among business leaders surveyed in the Philippines. Seven in every 10 (70%) of Filipinos reported being very or extremely concerned about the impact of fraud on their business – placing the country third highest among markets surveyed, behind only the United States (89%) and India (82%).  

“Fraudsters are becoming more sophisticated, exploiting every channel and digital interaction to bypass traditional defenses,” said Yogesh Daware, chief commercial officer of TransUnion Philippines. “The financial impact revealed in TransUnion’s latest Top Fraud Trends Report is staggering. Organizations must rethink their approach to fraud prevention, moving from reactive and fragmented controls to proactive, data-driven strategies that can adapt to evolving threats and protect trust at every stage of the consumer lifecycle.”

The report, which draws on proprietary data from TransUnion’s global intelligence network and surveys of business leaders in six countries and markets, and consumers across 18 regions, reveals that as monetary losses grow in scale, fraud is growing in sophistication and diversity.

When business leaders in the Philippines were asked which type of fraud was the predominant cause of business loss in the past year, first-party fraud and scam/authorized fraud were tied at 25% each, reflecting a dual threat from identity misrepresentation and deception. The percentage of Filipinos who claimed first-party fraud was the highest among all countries and markets surveyed, outpacing the global average of 16%.

First-Party Fraud and Scam/Authorized Fraud Most Prominent Cause of Fraud Losses in the Philippines, Both Surpassing Global Rates

Source: TransUnion business survey

“Reported first-party fraud losses in the Philippines emerging significantly higher than the global average points to a distinct local challenge. Detection requires deeper, data-driven insights into identity and behavior,” added Daware. “The good news is that we are seeing businesses take more proactive steps to close these gaps. More than two-thirds of Philippine business leaders we surveyed said their companies optimize their fraud detection models at least quarterly to enhance performance and effectiveness. While more can still be done, this kind of vigilance is key to staying ahead of emerging threats and sustaining trust in the digital economy.”

Fraud Exposure Remains High Across Philippine Consumers and Industries

Besides the impact on businesses, fraud continues to affect Filipino consumers at a notable rate. TransUnion’s consumer survey found that 65% of Filipinos said they had been targeted by online, email, phone call or text messaging fraud attempts from February to May 2025 — significantly higher than the 48% global average across 18 countries and regions.

Among those who said they were targeted, the most common scheme reported in the Philippines was phishing (45%) — fraudulent emails, websites, social media posts, QR codes and other methods designed to trick individuals into sharing personal data. This was followed closely by money or gift card scams (40.4%) and smishing (39.7%) — fraudulent text messages meant to deceive people into revealing sensitive information.

TransUnion’s latest findings also revealed that the suspected digital fraud rate for transactions where the consumer was in the Philippines was 4.4% in the first half (H1, Jan. 1 to June 30) of 2025, exceeding the global average of 3.8%[1]. Communities — which include social media sites, online forums, and dating sites — continued to record the highest suspected digital fraud rate among industries analyzed when the consumer was transacting in the Philippines at 6.5% in H1 2025 after topping the list during the same period in 2024.  The amount of time Filipinos spend online and on social media[2] could be creating more opportunities for fraudsters to exploit trust-based or personal exchanges, underscoring the importance of user awareness and robust security measures.

“As fraudsters continue to exploit the country’s high levels of digital activity, the impact extends beyond businesses and individuals to the wider economy,” added Daware. “Protecting both consumers and businesses is non-negotiable. Continued progress will require an end-to-end approach that closes vulnerabilities before they can be exploited. By investing in smarter prevention tools and supporting ongoing fraud education, we not only help protect businesses but also build the consumer trust that underpins a safer, more inclusive digital economy.”

In 2024, TransUnion Philippines launched the Fraud Industry Council to foster an industry-wide effort to combat fraud and create a safer environment for both businesses and consumers.

TransUnion came to its conclusions based on intelligence from its array of fraud prevention solutions. Visit TransUnion’s website to learn more.

Specific country and regional data in the report includes the Philippines, Botswana, Brazil, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Hong Kong, India, Kenya, Mexico, Namibia, Nicaragua, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom and United States, and Zambia. Download the TransUnion H2 2025 Update to the Top Fraud Trends Report for more information and insights about the global fraud trends.

¹ The rate or percentage of suspected digital fraud attempts reflects those which TransUnion customers determined to meet one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represent every country worldwide and not just the select countries and regions.

² https://www.meltwater.com/en/global-digital-trends

Manila, Philippines, October 16, 2025 – Despite 80 million Filipinos¹ using digital wallets in 2025 and 65%² having access to formal financial services, only one in 20 consumers held a credit card, according to TransUnion data. This highlights that while financial inclusion has advanced rapidly with the expansion of digital wallets, many Filipinos might still be credit invisible without access to traditional credit products, including credit cards. Being credit invisible makes it difficult for consumers to successfully build and leverage credit to start businesses, buy vehicles, invest in property – or even to access the liquidity they need for emergencies. 

In 2023, 88% of new-to-card borrowers started their credit journey with a credit card as their first credit product, according to TransUnion data, implying that cards are a gateway for credit inclusion. As commerce in the Philippines becomes more digital, along with greater e-commerce adoption, credit cards are likely to become the preferred method of payment, especially for larger-ticket purchases.

To help lenders better understand the country’s credit-invisible consumers and promote inclusive, sustainable growth in the Philippine credit market, TransUnion (NYSE: TRU) — a global information and insights company and the country’s first comprehensive private credit reference agency — shared findings from a study on new-to-card consumers at its inaugural Philippines Financial Services Summit in Manila.

With new-to-card consumers defined as those with no prior credit card in wallet who opened their first-ever credit card, the study assessed Filipino consumers coming into the market over 12 months in 2023, and reviewed their early credit journey in terms of product uptake, repayment behavior and overall performance six months after they received their first card.

“The study emphasizes that credit cards are more than payment tools, they represent the first step towards financial mobility, offering consumers access to additional liquidity and flexibility when needed” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion. “Beyond enabling greater financial inclusion, they also provide an opportunity for lenders to build loyalty and trust through long-term relationships with new-to-card consumers, yielding stronger returns as their confidence and credit needs grow.”

Strong Engagement from New-to-Card Consumers but Performance Remains a Concern

TransUnion’s study found in 2024, approximately 1.46 million Filipinos became new-to-card consumers, making up around 50% of overall new card originations in that year. Among those entering the card market, around 57% were younger than 35 years of age, reflecting the strong role of digitally-engaged and connected youth in driving adoption. The demographic dividend associated with these consumers also highlights the need for lenders to capture them early to build deeper relationships over time. In terms of gender distribution, 56% of these consumers were women, which is slightly higher than the overall adult population distribution – an important indicator of credit inclusion progress.

Typically, new-to-card borrowers start with lower credit limits than established cardholders. Even when compared by borrower risk levels, they receive lower access to credit due to their limited credit history. Despite the lower limits, new-to-card consumers used their credit similarly to established cardholders and in a responsible manner, with utilization rates of 28.8% and 27.9%, respectively, after 12 months. This healthy comparison indicates that new-to-card borrowers are not eager to overuse their credit lines, which can lead to overburdened financial situations.

Table 1: Credit Card Limits Assigned to New-to-Card and Established Borrowers

Source: TransUnion Philippines Consumer Credit Database

However, payment performance gaps emerged as a concern. New-to-card consumers showed weaker credit performance compared to their better-established peers, even when controlled for risk scores. After 12 months, 28.2% of the near prime new-to-card borrowers were 30 days past due (DPD) compared to an industry average of 13.5% – 15.3%, while 4.1% of prime plus borrowers showed a 30+ DPD delinquency rate, compared to an industry average of 3.2% –4.0%, measured for same vintage time periods.

“New-to-card consumers present a strong opportunity for lenders, as they tend to be younger and demonstrate a clear willingness to use credit,” said Sun. “However, given their higher likelihood of early-stage delinquencies, lenders should invest in proactive engagement and education initiatives to help consumers build responsible credit management habits early in their credit journey, ultimately fostering long-term financial health that benefits not only the consumers but also strengthens the overall credit ecosystem.”

New-to-Card Consumers Likely to Open Additional Products to Meet Growing Needs

Once they have had a positive experience with their first credit card product, new-to-card consumers are likely to expand their credit wallet to access further liquidity.

Nearly one in ten (9.5%) of new-to-card borrowers in the study opened subsequent credit products in their first six months post their first card origination, compared to 15.7% of established credit card consumers who opened an additional product after opening a new card in the first six months of the study. This indicates a meaningful level of early engagement from these new entrants.

Among the new-to-card consumers who opted for a subsequent product, two thirds (67%) opened a second credit card as their next product, 27% chose a personal loan, 5% opened an auto loan, and 1% opened a mortgage. This indicates that new-to-card borrowers quickly learn how to use credit lines to meet their needs, and may find it easier to open similar credit facility as subsequent products in their credit journeys.

New-to-card consumers are somewhat loyal to the lenders that grant their first credit card product: 44% of them opened their second credit card from the same lender. Loyalty is even stronger when applying for a personal loan as a second product – 58% returned to an existing lender in wallet. However, loyalty declines with secured loans: only 29% chose the same lender for an auto loan, and 32% for a mortgage, which is likely due to differences in secured and unsecured lending processes and product positioning, as secured product lenders typically seek borrowers with more established credit histories and strong demonstrated credit performance.

“A positive first experience with credit positions Filipinos well to consider additional products that respond to their growing needs,” Sun said. “However, there seems to be an opportunity to build loyalty with existing lenders when they consider subsequent products, highlighting that lenders could benefit from building lifelong relationships through closer monitoring of shifting and growing consumer needs, offering customized solutions and enabling focused education initiatives.”

Credit Card Growth with Guardrails

New-to-card consumers gained lower credit lines on their subsequent credit cards than their risk and age likewise credit-established peers: 71% were granted lines below PHP50,000, and only 3% received lines in excess of PHP300,000, compared to 31% and 12%, respectively, for established cardholders.

Although new users had lower balances, their balances grew steadily over the six months following the new card opening at a rate similar to established users. On an average, established users had PHP55,497 in card balances after six months, while new users had PHP25,280. Given lower line access and potentially greater needs, new users used a slightly higher percentage of their credit limits — 37% compared to 32% for established users.

Similar to the performance of their first credit card product, new users were more likely to fall behind on payments on subsequent credit products opened. Among near prime borrowers, 6.2% of new users were 60 days past due on new products, compared to 1.6% of established users. For prime plus borrowers, 3.1% of new users were delinquent, versus just 0.3% of established users. The performance observations in subsequent products underscore the critical need for enhanced monitoring and predictive risk management approaches by lenders, along with greater efforts to educate consumers on responsible credit use.

“New-to-card consumers are not just entering the credit market — they are shaping its future,” concluded Sun. “By recognizing their potential and supporting them with the right tools, education and responsible lending practices, we can unlock long-term value for both consumers and lenders, while driving inclusive and sustainable growth across the Philippine credit ecosystem.”

*The analysis focused on those who had opened their first credit card between January and December 2023. They were compared against established cardholders with at least one active card and two years of credit history, with controls for risk score and age to ensure like for like comparisons. Subsequent originations were studied between January and June 2024. Performance on subsequent originations were studied between July and December 2024.

¹ https://thefintechtimes.com/bridging-the-banking-divide-the-rise-of-e-wallets-in-the-philippines/

² According to data from the Bangko Sentral ng Pilipinas (BSP), as cited in media report: https://www.bworldonline.com/banking-finance/2025/07/18/685852/bsp-to-step-up-financial-inclusion-efforts/;

³ TransUnion CreditVision^® risk score: Subprime = JJ to II; Near prime = HH to DD; Prime = CC; Prime plus = BB; Super prime = AA

Manila, Philippines, August 19, 2025 – TransUnion (NYSE: TRU), a global information and insights company and the Philippines’ first comprehensive private credit reference agency, today released its third annual Credit Perception Index (CPI). As an important part of TransUnion’s ongoing commitment to promote credit literacy and financial inclusion in the country, the CPI examines how Filipinos perceive credit, the drivers and barriers influencing their behavior, and the implications for the broader financial ecosystem.

The Philippines’ 2025 CPI score stands at 73 out of 100, only slightly lower from 74 in 2024¹, signifying overall stability in credit sentiment. While most CPI score factors such as favorability, concept knowledge, product knowledge, reservations and stigmas remained relatively steady, trust in credit products increased significantly by six points.

Conversely, credit messaging receptivity—the likelihood to use credit after learning about its potential benefits—dropped by nine points. This decline may be attributed to external factors such as higher interest rates and growing concerns about digital fraud.

TransUnion CPI Score and Score Factors of the General Population

Knowledge and interest remain strong

The overall stability of the CPI score is underpinned by a well-established understanding of credit and a growing appetite to engage with financial products. More than two-thirds (69%) of Filipinos say they are knowledgeable about what credit is, in general. Moreover, interest in learning about specific credit products grew, especially for payday loans (+7 percentage points [pp]), micro loans (+7pp), mobile loans (+6pp), personal loans (+5pp), and buy now, pay later (BNPL) (+5pp).

“We are glad to see the CPI score holding largely steady in 2025, supported by growing trust in credit products. More encouragingly, this year’s CPI results also tell us that Filipinos are eager to learn more about financial options that are relevant, accessible, and suited to their needs,” said Peter Faulhaber, President and CEO of TransUnion Philippines. “This increasing openness is a positive indicator of progress. As financial literacy deepens, we anticipate even greater familiarity, trust and responsible use of credit – key pillars in building a more inclusive and robust financial ecosystem in the Philippines.”

Barriers to credit use linger

Despite positive gains in trust and openness, external factors continue to hold back Filipinos from actively using credit. Across all three population groups surveyed—the general population, the unbanked and the financial technology (FinTech) users—high interest rates emerged as the top deterrent to credit usage, cited by 59%, 52% and 61%, respectively. Concerns about scams and fraud followed closely, affecting 52% of the general population, 47% of the unbanked and 52% of FinTech users. These figures highlight widespread apprehension about security threats across different population groups, regardless of their CPI score.  

Indeed, security and trust emerged as key consumer considerations when choosing to engage with financial institutions, cited by more than half (58%) of the respondents, just slightly behind convenience at 60%.

These findings underscore a critical challenge: while trust is improving, consumers still require stronger assurances through safer and more supportive credit environments. Addressing these concerns will be key to unlocking broader participation in the credit ecosystem and advancing financial inclusion across all segments of the population.

Narrowing gap between general population and the unbanked

A closer look at population segments reveals that the TransUnion CPI score for the unbanked Filipinos rose by two points—from 65 in 2024 to 67 in 2025—reducing the gap with the general population from nine to six points. Notably, this two-point increase among the unbanked also outpaced that of the general population (+2 points vs. -1 point). This improvement was primarily driven by significant gains in credit product trust (+9 points) and knowledge (+8 points).

TransUnion CPI Scores of the Three Population Groups

The unbanked also demonstrated enhanced understanding across nearly all credit products surveyed, with marked progress in knowledge of mobile loans (+16pp), payday loans (+15pp), automotive loans (+13pp), micro loans (+12pp), personal loans (+10pp) and BNPL (+10pp). These trends suggest growing familiarity with formal credit options, although overall knowledge (56%) still trails behind the general population (69%).

FinTech emerges as the first financial product among younger generations

Recognizing the increasing influence and widespread adoption of FinTech in the country, TransUnion introduced FinTech users as a new population group in this year’s CPI. Among the respondents, FinTech usage is nearly universal, with 91% reporting they use at least one digital financial product.

Most commonly used FinTech products include eWallets (77%), online banks (51%), and digital payment apps (47%). Notably, over one-third (35%) of the general population reported an eWallet as their first financial product, surpassing bank accounts (30%). This trend is especially evident among younger generations, with Gen Z (47%) and Millennials (37%) more likely to start their financial journey with an eWallet, while Gen X and Baby Boomers favored bank accounts at 40% and 34%, respectively.

In terms of credit perceptions, among the three population groups surveyed (general, FinTech, unbanked), FinTech users posted the highest CPI score in 2025 at 74, along with the highest level of general credit knowledge (71%), outperforming both the general population and the unbanked.

“The strong performance of FinTech users and the narrowing gap between the unbanked and general population reflect encouraging momentum toward greater financial inclusion,” said Faulhaber. “However, to fully unlock the benefits of credit and drive broader adoption, we must continue addressing persistent barriers – especially concerns around fraud and security that still deter many Filipinos from engaging with credit. By fostering trust and enhancing financial education, we can empower more Filipinos to participate confidently in the credit economy, helping build a financially resilient population that supports the nation’s journey toward upper-middle income status.”

For more information and insights, please view the full report of the TransUnion Credit Perception Index study.

¹ The 2025 CPI score computation was refined to provide a more holistic and robust view of Filipino consumers and capture shifting perceptions and behaviors. The same formula was applied retroactively to enable year-over-year comparisons.

With 20 years of experience in the banking industry spanning both conventional and digital institutions, Devon brings a strong track record of integrating traditional banking with innovative solutions to enhance user experiences through customer-centric strategies. He joins TransUnion from ZA Bank, Hong Kong’s first digital bank, where he was a founding member and most recently served as the Alternate Chief Executive and General Manager of Business Banking and Lending. Prior to that, he also served in leadership roles at Standard Chartered Bank and DBS Bank. Devon holds a bachelor’s degree in International Business from the Business School of the Chinese University of Hong Kong (CUHK).

With a strong focus on innovation and customer empowerment, Devon’s expertise in digital transformation aligns seamlessly with TransUnion’s commitment to delivering cutting-edge, insight-driven products and solutions that expand financial opportunities for customers and consumers in a secure and trusted environment. Under his leadership, TransUnion will further advance its product proposition and analytics capabilities in Asia Pacific, reinforcing its role in promoting financial inclusion through data and insights across the region.

“We are pleased to welcome Devon at a pivotal time for Asia Pacific, marked by the post-Credit Data Smart (CDS) era in Hong Kong and a fast-growing economy in the Philippines,” said Marie Claire Lim Moore, Asia-Pacific Regional President and Hong Kong CEO at TransUnion. “As market dynamics shift, it is essential for TransUnion to scale our product, data and analytics capabilities by leveraging global expertise and advanced technologies to better serve customers and consumer. Devon’s unique perspective as a former customer and partner gives him an unparalleled understanding of how our solutions can effectively address evolving market needs. We are confident his leadership will be a strategic accelerator for our growth and further our mission of delivering Information for Good.”

Commenting on his appointment, Devon said: “It is a true honor to join TransUnion, a global leader with a strong focus on innovation, data integrity and empowering smarter decisions through actionable insights. This is an exciting time, as Asia Pacific undergoes rapid digitalization and evolving consumer expectations. The demand for trusted, forward-looking credit and fraud solutions has never been more crucial. Having witnessed the meaningful impact of TransUnion’s proprietary data and technology in supporting financial inclusion and resilience, I am excited to expedite innovation to deliver even greater value to consumers and businesses. Together, we will strengthen the region’s financial ecosystem, foster deeper trust and unlock more secure, inclusive opportunities that benefit individuals, institutions and the broader economy.”

Manila, Philippines, July 3, 2025 – Filipino consumers are entering the second half of 2025 with a mix of financial optimism and caution, according to the latest Q2 2025 Consumer Pulse Study released by TransUnion (NYSE: TRU). While many expressed confidence towards their income prospects over the next year, their outlook is tempered by ongoing economic challenges such as inflation and job security. In response, consumers are actively adjusting their spending habits and seeking access to credit as they work towards greater financial resilience.

Over two in five Filipinos (41%) reported an increase in income over the past three months, while 17% saw a decline, slightly better than 19% during the same period last year. Overall, consumers remain optimistic, with 73% saying they expect their income to rise in the next 12 months.

However, financial challenges persist. Nearly half (44%) of consumers indicated they may be unable to fully repay at least one of their current bills or loans. Inflation (83%), job security (59%), and interest rates (40%) continue to be the leading concerns.

Filipinos balance spending cuts with financial planning

Nearly half (47%) of the respondents reported cutting back on discretionary expenses and 24% scaled down digital services. At the same time, many took proactive steps to improve their financial standing: 45% boosted their emergency savings and 33% accelerated debt repayments, consistent with trends seen in Q2 2024.

“Filipino households are approaching their finances with cautious optimism. While they’re aware of ongoing challenges like inflation and rising costs, many remain hopeful about their financial future. This mindset is reflected in their actions—cutting back on non-essential spending, saving consistently, and staying on top of debt. Our latest Consumer Pulse Study indicates that consumers are not just adapting to current conditions, but are also making thoughtful decisions to secure long-term financial well-being,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion.

Credit access remains a critical financial enabler

Access to credit continues to be seen as vital, with 58% of consumers saying it is essential to achieving their financial goals. Nearly half (44%) believe they have sufficient access to credit, up from 38% a year ago. Millennials remain the most confident (47%), while Baby Boomers showed a significant rise from 28% to 42%.

This growing confidence is also reflected in borrowing intentions. Demand for credit remains strong—especially among Gen Z (58%) and Millennials (52%) who plan to apply for or refinance credit in the next 12 months. Among those who intended to borrow, personal loans were the most sought after product (45%), followed by buy now, pay later (38%), and new credit cards (31%).

However, structural and emotional barriers remain: 57% of consumers said they had abandoned a credit application or refinancing plan due to fear of rejection based on income or employment status (30%), and the high cost of new credit (29%).

“It is encouraging to see that more Filipinos now consider credit more accessible. However, the fact that over half of potential borrowers still walk away from their credit plans tells us there is still work to be done. Lenders have an opportunity to bridge this gap by offering more inclusive solutions—ones that not only meet practical needs but also build trust and address the emotional barriers that often come with borrowing,” added Sun.

Credit monitoring awareness declines despite strong credit demand

While more Filipinos are using credit, the perceived importance of credit monitoring dipped from 72% last year to 68%—the lowest level recorded over the past five quarters since Q2 2024. This drop may reflect a possible shift toward complacency or a sense of familiarity. Across generations, Millennials were most likely to see credit monitoring as important at 73%, followed by Gen Z (72%) and Baby Boomers (62%), while Gen X reported the lowest level (60%).

“In times of economic uncertainty, maintaining good credit health is more important than ever. A solid credit profile can provide access to critical financial opportunities when unexpected challenges arise. That is why it is vital for the financial industry to invest in better education and accessible tools that empower individuals to understand, manage and take charge of their credit journeys. Supporting consumers in building their financial resilience today lays the foundation for a more secure tomorrow,” said Sun.

TransUnion’s Consumer Pulse Study surveyed 943 adult Filipinos from May 5 to 23, 2025. This quarterly survey examines shifting consumer attitudes and behaviors based on the dynamics of income, debt, and identity theft. Respondents ranged from Gen Z, 18-28 years old; Millennials, 29-44 years old; Gen X, 45-60 years old; and Baby Boomers, age 61 and above. By capturing insights across generations and financial situations, the study helps promote greater financial inclusion by informing policies, products, and education efforts that meet the evolving needs of all consumers.

For more information, please view the full report of the TransUnion Q2 2025 Consumer Pulse Study.

Manila, Philippines, April 29, 2025 – Based on recently released proprietary insights from TransUnion’s (NYSE: TRU) global intelligence network, the suspected digital fraud rate of digital transactions where the consumer was in the Philippines stood at 13.4% in 2024. This placed the Philippines as the second highest for the suspected digital fraud rate¹ among markets analyzed – following India (19.0%) and preceding the Dominican Republic (10.9%). 

Additional data from TransUnion’s H1 2025 Update to the State of Omnichannel Fraud Report showed that the suspected digital fraud rate in the Philippines was higher than the global level of 5.4% in 2024 – consistently exceeding the global rate for the fifth consecutive year going back to 2020, when TransUnion’s analysis began. The suspected digital fraud rate in the country also increased by 5% from 2023 – a stark contrast to the 8% decrease observed across the globe. 

More Filipinos reported being targeted by fraud and suffering financial loss than global counterparts 

Among consumers surveyed across 18 countries and regions between November and December 2024, over seven in every ten Filipinos (74%) reported being targeted by an email, online, phone call or text messaging fraud scheme in the last three months – much higher than 53% across the markets surveyed. Moreover, over one third (34%) of Filipinos reported losing money due to any of the above mentioned tactics from November 2023 to December 2024, surpassing the global rate of 29%. These trends showed that Filipinos are facing greater risks from fraud, highlighting the need for stronger safeguards to prevent financial losses. 

“The average reported fraud loss among Filipinos last year according to our study was USD768, exceeding PHP44,700 in local currency². While these figures are lower than the median of USD1,747 (approximately PHP101,700) across global markets which TransUnion surveyed, the impact of falling victim to fraud remains significant,” said Yogesh Daware, chief commercial officer at TransUnion Philippines. “Considering average monthly wages in the Philippines, the losses constitute at least over two months of salary³ for most Filipino households.” 

Communities was the industry with the highest suspected digital fraud rate in 2024 

Based on TransUnion’s report, communities, which includes online dating and social media sites and forums, had the highest suspected digital fraud rate among industries for attempted transactions where the consumer was in the Philippines at 19.2% last year. These findings align with global trends as the industry also emerged with the highest suspected digital fraud rate (11.6%) worldwide. However, the suspected digital fraud rate from the Philippines in communities exceeded the global rate by 66%. 

“The number of social media users in the Philippines amounts to 78% of the country’s population⁴. The high volume of users interacting online opens doors for fraudsters to take advantage of unsuspecting victims. Despite a decrease in digital transactions in communities globally and from the Philippines last year, our analysis showed a growth in the number of transactions suspected to be digital fraud. This tells us that fraudsters are ramping up their attacks by targeting more victims and diversifying their tactics,” added Daware. 

Following communities, the retail industry emerged with the second highest rate of suspected digital fraud (13.0%) for attempted transactions where the consumer was in the Philippines last year – higher than 7.6% globally. Although financial services remained among the top three industries most targeted by suspected digital fraud in the Philippines at 6.3%, this rate has significantly decreased by 35% year-over-year (YoY), even as the number of digital transactions in that industry increased by almost one fifth (17%). 

This improvement might be attributed to the ongoing efforts from both the public and private sector to combat fraud in that industry recently. The Philippine government has been intensifying its campaign against scams⁵ and mandated financial institutions and other stakeholders to establish cooperative mechanisms⁶. In support of these directives, TransUnion also launched the Fraud Industry Council (FIC) in 2024 to help drive a collective initiative across the local banking industry to strengthen consumer protection. 

Communities saw the highest suspected digital fraud rate in 2024 from the Philippines, followed by retail and financial services 

Source: TransUnion TruValidate^TM 

“Almost all Filipinos that we surveyed were concerned with falling victim to fraud. While fraud remains a concern in the Philippines, we also see declines in suspected digital fraud in the financial services industry which run alongside intensified efforts from both the public and private sector. However, fraudsters are highly adaptable and constantly evolving their tactics to exploit unprepared victims. Businesses and consumers must remain vigilant to avoid deception. We look forward to seeing more partnerships across companies and even industries to further enhance fraud defenses, with increasing awareness, strengthened collaborations and the friction-right fraud prevention technologies,” said Daware. 

TransUnion came to its conclusions about digital fraud based on intelligence from TransUnion TruValidate. 

Specific country and regional data in TransUnion’s H1 2025 Update to the State of Omnichannel Fraud Report includes Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Guatemala, Hong Kong, India, Kenya, Mexico, Namibia, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom, the United States and Zambia. Download the TransUnion report for more information and insights about the global fraud trends. 

¹ The rate or percentage of suspected digital fraud attempts reflects those which TransUnion customers determined to meet one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represent every country worldwide and not just the select countries and regions. 
² Based on the exchange rate on Jan. 6, 2025 when calculated for the report. 
³ https://psa.gov.ph/statistics/occupational-wages-survey 
⁴ https://datareportal.com/reports/digital-2025-philippines 
⁵ https://pia.gov.ph/govt-launches-anti-scam-hotline-digital-reporting-initiative/ 
⁶ https://www.bsp.gov.ph/SitePages/MediaAndResearch/MediaDisp.aspx?ItemId=7179 

With a long and distinguished career in global banking spanning two decades, Faulhaber has held leadership roles across the U.S., Europe, Middle East and Asia, including six years in the Philippines most recently. He joins TransUnion Philippines from HSBC Philippines, where he served as Head of Wealth and Personal Banking and held the position of Vice-chairman at HSBC Investment and Insurance Brokerage Philippines, which was established during his tenure.

Faulhaber has a proven track record of balancing performance growth and risk mitigation, as demonstrated by his dynamic leadership in both areas throughout his career. His experience aligns seamlessly with TransUnion, which is dedicated to supporting growth with insight-driven risk management. He holds a Master of Business Administration (MBA) from INSEAD, one of the world’s largest graduate business schools.

“We are excited to welcome Peter and his appointment comes at an important time for TransUnion Philippines as we work to further enhance our services and solutions in a rapidly growing market with surging credit adoption and proliferating digital services,” said TransUnion Asia-Pacific Regional President, Marie Claire Lim Moore. “As a former user of TransUnion services, Peter is uniquely positioned to understand our business, the local Philippines market and the needs of our customers. He is the ideal leader to help us implement our wider global TransUnion solution set in the Philippines for the benefit of the customers and consumers we serve, and advance our mission of Information for Good.”

Commenting on his appointment, Faulhaber stated: “I am delighted and honored to join TransUnion, which is dedicated to driving financial inclusion in the Philippines through innovation and insights. Since it was established, TransUnion has enabled a large number of Filipinos consumers greater access to the formal financial system, unlocking more potential and opportunities in businesses and in communities. I look forward to leveraging my skills and expertise in the financial industry to enhance the nation’s financial knowledge and resilience. This will enable consumers to access credit more responsibly and empower them to achieve great things.”

Manila, Philippines, December 18, 2024 – A new analysis from TransUnion (NYSE: TRU) found that 15.0% of all attempted ecommerce transactions on Black Friday, November 29, 2024 where the consumer was in the Philippines during the time of transaction, were suspected to be Digital Fraud. It was the highest suspected retail Digital Fraud rate in the Philippines out of all the days in the 2024 holiday shopping weekend – a five-day period that spanned from November 28, the Thursday before Black Friday, to December 2, 2024, Cyber Monday.

As most private sector employees in the Philippines are salaried under a bi-monthly pay cycle, many Filipino consumers received their salaries within the 2024 holiday shopping weekend on November 29. It is also possible for most consumers to have received their 13^th month pay and any other Christmas bonuses they may be eligible for around this time of the year as well. With consumers eager to spend their bonuses on good deals online to purchase gifts, the period presents a prime opportunity for fraudsters to take advantage of unsuspecting shoppers. 

Retail Digital Fraud rates in the Philippines remain higher than global levels

Beyond Black Friday, for all attempted ecommerce transactions where the consumer was in the Philippines, 13.6% were suspected of Digital Fraud during the 2024 holiday shopping weekend – down from 14.3% in the same period from the Thursday before Black Friday to Cyber Monday 2023. These numbers continue a gradual decline in suspected Digital Fraud rates during the holiday shopping weekend over the past three years.

However, despite decreasing numbers within the country, the suspected retail Digital Fraud rate during the holiday shopping weekend in the Philippines is alarmingly 196% higher than the global rate of 4.6% – which dropped from 6.0 last year. A much higher suspected Digital Fraud rate than global one was observed across every day of this year’s holiday shopping weekend for attempted ecommerce transactions where the consumer was in the Philippines.

Higher Suspected Retail Digital Fraud Rates in the Philippines Compared to Globally During the Holiday Shopping Weekend

Source: TransUnion TruValidate™

In addition to the Philippines seeing a higher suspected retail Digital Fraud rate compared to the global rate during the holiday shopping weekend, its speed of decline also lagged behind. TransUnion observed a 5% decrease in the rate of suspected retail Digital Fraud during the holiday shopping weekend in the Philippines between 2023 and 2024. This is notably lower than the global decline rate of 23% during the same period.

Beyond this year’s holiday shopping weekend, for the days in 2024 up to that period (January 1 to November 27, 2024), the Philippines continued to show higher suspected retail Digital Fraud rates than globally. Compared to the global non-holiday suspected retail Digital Fraud rate of 7.5%, findings show that 12.3% of all non-holiday attempted retail transactions when the consumer was in the Philippines were suspected to be Digital Fraud.

The Percentage of Suspected Ecommerce Fraud during the Holiday Shopping Weekend vs. Overall

Source: TransUnion TruValidate™

“We are encouraged to see a gradual decline in Digital Fraud rates within the Philippines market. However, these rates still significantly exceed the global rate, which underscores the need for continued efforts from both public and private sectors to further address the prevalence of Digital Fraud in the country. With the increase in suspected fraudulent activities observed during the holiday shopping weekend, it is imperative for both businesses and consumers alike to remain vigilant as we navigate this busy festive season,” said Yogesh Daware, chief commercial officer of TransUnion Philippines.

Filipino shoppers are most concerned about Digital Fraud among countries and regions analyzed

TransUnion’s Q4 2024 Consumer Pulse Study found that 91% of survey respondents in the Philippines expressed being extremely, very or moderately concerned about digital fraud during this busy shopping season. This percentage is the highest among the countries and regions TransUnion surveyed in the study.

“Our study findings indicate that Filipinos exhibit the highest awareness levels towards holiday digital fraud. Additionally, insights from the latest Consumer Pulse Study revealed a more proactive attitude among Filipino consumers in protecting themselves. An increasing number of Filipinos are regularly checking their credit reports and monitoring their accounts for unauthorized activities. While consumers are taking these steps to safeguard themselves against fraud, it is crucial for businesses to implement holistic fraud solutions to ensure consumer safety and maintain business integrity, especially during the holiday shopping season and beyond,” added Daware.  

TransUnion came to its conclusions about Digital Fraud based on intelligence from its identity and fraud product suite that helps secure trust across channels and delivers efficient consumer experiences – TransUnion TruValidate. The rate or percentage of suspected Digital Fraud attempts reflect those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation or 4) a corporate policy violation upon customer investigation – compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represent every country worldwide. 

To find out how this data varies by select countries and more, TransUnion’s holiday fraud trends can be found here.

Manila, Philippines, December 10, 2024 – While almost four in every five Filipinos (79%) anticipate their income to grow over the next year, rising bill and loan payment expectations (49%, up from 43% for the same time last year) suggest that many households anticipate further financial strain in the coming months.

These were among findings from the Q4 2024 Consumer Pulse Study on Filipino consumers’ shifting behaviors and attitudes to current and future household budgets, spending and debt, published by global information and insights company TransUnion (NYSE: TRU).

Sustained financial strain affected future household spending and debt management

In Q4 2024, nuanced shifts were observed in both household financial health and consumer outlook. A total of 84% of households experienced either income growth (44%) in the past three months or maintained their income levels (40%), highlighting stable income trends.

However, debt repayment remained a pressing challenge as over two in every five Filipinos (42%) reported difficulty paying bills and loans in full, maintaining a stable figure from Q4 2023 at 43%. This consistent trend underscores a sustained financial strain across many of the population.

Most consumers (80%) viewed inflation for everyday goods as the most pressing concern affecting their household finances in the next six months, followed by worries over job security (59%) and interest rates (41%). These findings underscored the caution of Filipino consumers regarding financial resilience – possibly suggesting broader implications for household spending and debt management in the coming year.

“In the face of sustained financial pressure, consumers in the Philippines have increasingly adjusted spending and saving behaviors. While more are shifting away from long-term savings, reliance on credit rose as almost one in five (17%) increased credit usage in Q4 during the holiday season,” said Weihan Sun, Principal of Research and Consulting for Asia Pacific at TransUnion. “These behaviors reflect a tendency to prioritize immediate financial flexibility over long-term security as households attempt to bridge short-term financial needs in a high-cost environment. This might elevate default risks in certain debt categories which lenders should be cautious of. Additionally, these financial behaviors highlight the need for further credit education among a population where most consumers are relatively new to credit.”

Credit is more favorably viewed among younger generations despite limited access

More Filipinos are recognizing the importance of credit. Over three in every five Filipinos (64%) said that access to credit is highly important to achieving their financial goals – up from 58% last year. This trend was led by Gen Z Filipinos with 68% seeing credit access as crucial.

However, Filipinos believe that access to credit remained limited as only 42% of consumers felt adequately served and one-quarter (25%) of all respondents reported insufficient access. Gen Z (34%) felt the most underserved. Despite this, overall interest in new credit was strong with 53% planning applications for new credit or refinancing existing credit in the next year, largely for personal loans, buy now, pay later and credit cards. These findings signal opportunities for lenders to meet the demand for accessible products especially among younger Filipinos eager to leverage credit for better financial flexibility.

Alongside holding more favorable perceptions about credit, Filipinos are monitoring their credit reports more frequently as well. More than seven in ten (71%) now checks their credit report at least once a month, a slight increase from last year’s 67%. A significant 74% also viewed credit monitoring as highly important. This shift towards proactive monitoring suggests consumers are becoming more mindful of their credit health and responsibilities. However, despite this positivity, 16% of consumers did not monitor their credit at all, which indicates that further education is needed in a rapidly growing credit market. 

Growing knowledge gaps seen in Filipinos’ inactivity to respond to cybersecurity threats

Fraud remains a significant concern of Filipino consumers, and more than half of Filipinos (55%) reported encountering fraud attempts without falling victim. Meanwhile, those unaware of fraud attempts increased from 28% last year to 35% in Q4 2024, while the percentage of consumers who fell victim grew slightly from 8% last year to 10%. These findings highlight a need for enhanced protective measures, as phishing (45%), smishing (41%) and gift card scams (36%) were the most frequent fraud schemes experienced among those Filipino consumers who reported being targeted.

Growing cybersecurity challenges are also evident as 35% of Filipinos reported being notified that their personal data was exposed in a data breach in Q4 2024. While more than one in three (35%) experienced data breach incidents this quarter, 12% of the consumers reported that they have taken no action in the last 60 days due to cybersecurity concerns. Among them, 55% said they were unsure of what steps to take to better protect themselves from these threats. This reveals an ongoing knowledge gap that needs to be addressed urgently.

“The threat of digital fraud continues to impact the online experiences of Filipino consumers. As these threats evolve, empowering consumers through clear guidance and accessible security tools could help alleviate their uncertainty and prevent breaches more effectively. By working collectively to foster a culture of awareness and provide necessary resources, we can build a safer digital environment for all Filipino consumers and businesses,” added Sun.

TransUnion’s Consumer Pulse Study surveyed 938 adult Filipino consumers from September 25 to October 17, 2024. This quarterly survey examines shifting consumer attitudes and behaviors based on the dynamics of income, debt, and identity theft, with respondents ranging from Gen Z, 18–26 years old; Millennials, 27–42 years old; Gen X, 43–58 years old; and Baby Boomers, age 59 and above.

For more information, please view the full report of the TransUnion Q4 2024 Consumer Pulse Study.

Manila, Philippines, November 28, 2024 – Global information and insights company and the Philippines’ first comprehensive private credit reference agency, TransUnion (NYSE: TRU), has launched the Fraud Industry Council (FIC or Council) in collaboration with several leading banks. As an anti-fraud task force in the country supported collectively by the leaders across the banking industry, the Council aims to foster an industry-wide effort to combat fraud and create a safer environment for both businesses and consumers. TransUnion is also calling on other players in the formal financial sector to join the fight.

Understanding the problem of fraud in the Philippines

Data from the TransUnion H2 2024 Update: State of Omnichannel Fraud Report shows that the percentage of consumers being targeted by fraud attacks in the Philippines is notably higher than in many other nations. 70% of Filipinos surveyed reported being targeted by digital fraud attempts via email, online, calls, or text messaging, compared to 55%, 44% and 48% in India, Hong Kong and the US, respectively. Among all Philippine consumers surveyed, 10% said they had fallen victim to fraudulent schemes.

Additional data from the report also showed that 13% of all digital transactions originating in the Philippines were suspected to be fraudulent – well above the global rate of 5.2%. This concern is also being noted globally. Data from the United States Federal Trade Commission showed that the Philippines ranks 7th among the top 50 countries outside the US in terms of fraud cases reported^[1].

A call to collectively combat fraud

As an industry leader on the forefront of fraud insights and solutions, TransUnion is well-positioned to play a pivotal role in connecting key industry players to rally together to fight against fraud. It leverages a global network of anti-fraud experience, extensive knowledge of multiple touchpoints across the consumer lifecycle and one of the biggest local databases for credit, fraud and alternative data to form a solid foundation for the FIC.

Through the FIC, several leading local and international banks are joining forces. TransUnion aims to collaborate with these Council members, to derive market trends from data and insight sharing, share best practices and formulate measures to help protect consumers from fraud and mitigate losses for businesses and the public alike.

On the importance of addressing fraud, Rolando Tanchanco, President of BDO Financial Services and Senior Executive Vice President of the BDO Consumer Banking Group at BDO Unibank, Inc. said: “As custodians of trust and guardians of financial security, we must remain vigilant in the face of fraud, especially in this digital era. We share in TransUnion’s mission to help businesses and consumers confidently transact in the digital space. To that end, we look forward to joining the Fraud Industry Council and share in the fight to combat fraud together.”

Highlighting the need for sustained, collaborative action, Marie Claire Lim Moore, Asia-Pacific Regional President at TransUnion said: “In a world where financial landscapes are interconnected, our global network, rich database and advanced insights provide a solid foundation for combatting fraud in the Philippines. By initiating this revolutionary effort with leading players in the financial sector, we not only look to combat emerging threats, but also empower financial institutions with the intelligence needed to protect their clients. As we stand side-by-side at the forefront of this battle, collaboration throughout the financial sector is paramount. By working together, we not only combat fraud, but also lay the foundations for sustainable wider economic growth towards a safer, more secure financial future for all.”

Calling on other players to join the fight

Addressing the problem of digital fraud is a long-term process which requires consistent and persistent effort. The formation of the FIC is just the first step. To help create a world where consumers and businesses can confidently transact in online spaces, TransUnion is calling for more collaborators to join the Council and fight against fraud together. 

[1] International Reports | Tableau Public

Manila, Philippines, November 12, 2024 – A global TransUnion (NYSE: TRU) analysis found that the communities industry – which includes online forums and dating websites – saw the largest percentage (18.0%) of suspected Digital Fraud in the first half¹ of 2024 across evaluated industries when the consumer attempted to transact from the Philippines. The suspected Digital Fraud rate from the Philippines in the communities industry also experienced the largest increase, rising 35% from H1 2023 to H1 2024.

Some of these insights are in the newly released H2 2024 Update to the State of Omnichannel Fraud Report, which explores Digital Fraud trends in H1 2024. TransUnion also determined that the highest suspected Digital Fraud rate from the Philippines in the customer journey against communities in H1 2024 occurred during the financial transaction stage (31% of all digital financial transaction attempts in communities were suspected Digital Fraud), followed by account creation at 22%.

These findings align with global trends pointing to communities as the industry with the highest rate of suspected Digital Fraud (11.5%) in the first half of 2024 – showing an increase of 23% from H1 2023. Communities was the industry with the highest suspected Digital Fraud rate in seven of 19 countries and regions studied in the latest report.

Communities had the highest suspected Digital Fraud rate and Year-over-Year (YoY) rate increase in H1 2024 from the Philippines

Source: TransUnion TruValidate™

“Digital scams are constantly evolving. The growth of communities also creates more avenues for scammers to potentially defraud consumers,” said Yogesh Daware, chief commercial officer at TransUnion Philippines. “With rising community fraud rates in the Philippines aligning with global findings, there is a need to focus efforts on educating consumers about these types of attacks and disseminating preventive measures that consumers and businesses can take to protect themselves from falling victim.”

Suspected Philippine Digital Fraud rates remain high

The global rate of suspected Digital Fraud remained stubbornly high in H1 2024 at 5.2% of all attempted transactions. For attempted transactions where the consumer was in the Philippines during that period, the rate of suspected Digital Fraud of 13.0% was much higher than all of the 19 countries and regions TransUnion analyzed, aligning with the trend last year.

Of all the transactions coming from the Philippines, suspected Digital Fraud attempts in H1 2024 were most prevalent at the account login stage of the consumer journey (15.4% of all attempted digital account logins were suspected of Digital Fraud), an increase of 11% compared to H1 2023. This is followed by account creation at 3.7% and respectively transaction at 1.6%. Both stages saw a decrease in suspect Digital Fraud attempts YoY at 8% and 41%,.

Diversification of fraud tactics by fraudsters to scam consumers

These findings align with TransUnion’s Q2 2024 Consumer Pulse Study, in which 70% of Filipinos said that they had been targeted by email, online, phone call or text messaging fraud in the last three months, with 10% falling victim. Among those who reported being targeted, phishing remains the most common scheme at 51%. Other common methods reported by these targeted consumers include smishing (44%), money and gift card scams (36%), third party seller scams on legitimate ecommerce sites (31%), vishing (25%), identity theft (23%), money mule (19%) and account takeover (16%). All these highlight the ongoing diversification of fraud tactics across different stages of a customer journey.

“Protecting customers and businesses from fraud is essential to enabling safe and tailored consumer experiences. The latest findings from TransUnion reveal that despite the good-faith efforts by global and local organizations to identify and prevent fraud, fraudsters continue to evolve and it’s vital that fraud prevention methods keep up with the changing times,” added Daware. “Businesses that aren’t already doing so should ensure that they are taking advantage of fraud prevention technologies such as identity verification, IP intelligence, device reputation and synthetic identity detection as critical components of their fraud prevention programs to stay ahead of evolving threats.”

TransUnion came to its conclusions about Digital Fraud based on intelligence from its identity and fraud product suite that helps secure trust across channels and delivers efficient consumer experiences – TransUnion TruValidate. The rate or percentage of suspected Digital Fraud attempts reflect those identified by TransUnion customers as meeting one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions it assessed for fraud. 

Download the TransUnion H2 2024 Update to the State of Omnichannel Fraud Report to learn more. Specific country and regional data in the report include Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Hong Kong, India, Kenya, Mexico, Namibia, the Philippines, Puerto Rico, Rwanda, South Africa, Spain, the United Kingdom, the United States, and Zambia.

¹The first half of the year or H1 refers to January 1 to June 30

Manila, Philippines, October 17, 2024 – Despite a general improvement in Filipinos’ perceptions and knowledge of credit compared to last year, significant efforts are still required to improve these further, especially among Filipinos living outside the Greater Capital Region (GCR)¹. These insights come from the second annual Credit Perception Index (CPI) study conducted by TransUnion Philippines, a global information and insights company and the Philippines’ first comprehensive private credit reference agency.

Launched in 2023, the CPI study aims to assess Filipinos’ credit perceptions based on two factors: their current attitudes towards credit and how likely their views can change in the future. While the CPI score of the general Filipino population grew four points to reach 69 in 2024, the score for Filipinos living within the GCR stands higher at 77, compared to only 58 of those outside the region². 

Knowledge gaps grow between urban, suburban and rural Filipinos

Despite overall credit perceptions being lower among Filipinos outside the GCR, a deeper dive into the study reveals that these perceptions differ across the kinds of communities Filipinos reside in. The CPI score of Filipinos living in urbanized³ areas stands at 79 – 22 points higher than suburban dwellers (with a score of 57)⁴, and 31 points higher than those living in rural (at 48)⁵ locations.

Notable gaps were also observed particularly in credit concept knowledge, product knowledge, trust and favorability among the three respondent groups. These gaps grew more pronounced based on community location – the more rural the area, the wider the gap. The biggest difference was seen in credit product knowledge. Urban dwelling Filipinos scored 70 - 11 points higher than suburban residents (with a score of 59), and 19 points more than rural Filipinos (at 51).

The sources of information on credit products suggest a possible explanation for the discrepancy. The majority of urban residents (65%) cited social media as their most preferred source for information, followed by banks or financial institutions (59%). However, the preference for financial institutions was lower by eight percentage points among suburban residents (51%), and 15 percentage points among rural Filipinos (44%).

In contrast, family and friends ranked highest among both suburban (63%) and rural (60%) groups in terms of their source of credit products information. These findings show that residents in more rural regions tend to prefer alternative sources such as personal networks for credit information over professional organizations.  

“Our CPI 2024 reveals significant disparities in credit perception among Filipinos based on community type. Urban residents demonstrate a stronger understanding and thus preference for credit products compared to those in more rural regions, potentially due to differing sources of credit information,” said Weihan Sun, Principal of Research and Consulting for Asia Pacific at TransUnion. “Given that suburban and rural residents rely more on their personal networks for credit information, this may limit their exposure to the latest credit trends and professional insights.”

Favorability, trust and knowledge towards credit among Filipinos by community type

Urban Filipinos lead in financial confidence and credit product ownership

Among the three respondent groups, urban Filipinos are the most confident in their financial standing. Over four in every five (84%) said they have a strong understanding of their finances, while close to three in every four (74%) can easily afford their day-to-day necessities. Almost one third (32%) of urban residents also consider themselves to be of higher income (6%) or upper middle class (26%).

However, the majority of suburban (81%) and rural (84%) populations said they are from the lower middle class or with a lower income. The contrast goes even further: compared to urban residents, confidence in their ability to afford day-to-day necessities was lower by nine percentage points among suburban Filipinos (65%) and 19 percentage points among rural Filipinos (55%). Additionally, over three in every five suburban (62%) and rural (65%) Filipinos often find themselves with limited money at the end of the month.

The rate of credit product ownership emerged as a possible factor impacting the financial confidence of both suburban and rural Filipinos. While over half (51%) of Filipinos living in urban areas own credit cards, ownership falls to 30% among suburban Filipinos, and even lower to 21% among rural dwellers.

Similar trends were also observed in trust and favorability. Four in every five (80%) urban residents see credit cards as trustworthy, but percentages are lower at 72% among suburban Filipinos and 69% among those in rural areas. The majority (77%) of urban Filipinos are favorable towards credit cards. However, only 67% of suburban Filipinos and 64% of rural Filipinos share the same sentiment.

Furthermore, positive perceptions surrounding credit products are stronger within metropolitan areas. Credit cards are seen as “helpful” by 43% of urban residents compared to only 37% of those in suburban and rural areas. These findings show the importance of continued efforts to grow trust, favor and ultimately adoption of credit products by introducing their positive impacts.

Collaboration and education for equitable financial inclusion

While much has been achieved in recent years to enable greater financial inclusion across the country, there remains more to be done to educate Filipinos outside the urban areas on credit products and services. A holistic, comprehensive effort involving both the public and private sectors is needed to drive equitable access and greater financial inclusion across the different population groups in the country – which is the foundation to growing the Philippines to be a financially resilient nation.

“Financial inclusion for Filipinos regardless of their community is important to us at TransUnion. To grow economic opportunities for Filipinos outside urban areas, we are committed to a proactive engagement strategy to support rural banks across the country,” added Sun. “We provide the latest market updates and data-driven insights and create information campaigns targeting the greater population. With regional economies heading in a positive direction, through education and collaboration, we can help ensure no Filipino gets left behind in the progress towards a more financially inclusive nation where everyone is empowered to build better lives.”

About the TransUnion Credit Perception Index

The TransUnion Credit Perception Index (CPI) study comprised of a survey targeting 1,000 consumers of the general population, as well as an oversample of 200 FinTech professionals between March to April 2024. To gauge Filipino’s current attitudes and future receptivity towards credit, respondents were posed a series of questions to rate their knowledge, trust and favorability surrounding credit and other financial products. The study aims to provide a holistic view of credit perceptions across the landscape and gain further insights to address gaps surrounding public perceptions of credit, what may influence them, and what may shift their perceptions. CPI will be conducted annually to monitor changes prevailing Filipino credit attitudes and perceptions over time.

For more information and insights, please view the full report of the TransUnion Credit Perception Index  study.

¹ GCR comprises the 16 cities and municipalities that make up Metro Manila.

² Non-GCR Filipinos are those residing outside the cities and municipalities that make up Metro Manila.

³ Urbanized areas are fully developed areas within the provinces in the Philippines.

⁴ Sub-urban areas are developing areas within the provinces in the Philippines.

⁵ Rural areas are undeveloped areas within the provinces in the Philippines.

In the front from left to right: 

• Khriztina Lim, Co-Founder and Chief Operating Officer, Lista 
• Aaron Villegas, Co-Founder and Chief Executive Officer, Lista 
• Marie Claire Lim Moore, Asia-Pacific Regional President, TransUnion 
• Ninotchka Sulit, Director, Head of FinTech Sales and New Adjacencies, TransUnion Philippines 
• Yogesh Daware, Chief Commercial Officer, TransUnion Philippines 

At the back from left to right: 

• Renz Cheng, Vice President of Finance, Lista 
• Ben Harder, Head of Data, Lista 
• Rowena Cristobal. Director, Product Management, TransUnion Philippines 
• Arra Santos, Senior FinTech Relationship Manager, TransUnion Philippines 
• Amrita Bhattacharya, Chief Operating Officer for Asia-Pacific, TransUnion

Manila, Philippines, September 16, 2024 – Global information and insights company and the Philippines’ first comprehensive private credit reference agency, TransUnion (NYSE: TRU), has announced a strategic partnership with Lista, one of the fastest growing financial management apps in the Philippines.

The partnership harnesses TransUnion Philippines’ database of consumer borrowing data, using its advanced scoring models to assess their risk profiles and present a credit score and credit report. The service is now easily available to Filipinos anywhere, anytime in the country, on Lista’s mobile portal. 

A collaboration that helps extend financial inclusion

A healthy credit score is a powerful financial tool that influences everything from the interest rates lenders offer and the credit lines they extend, to the decision to approve or reject a loan application. It affects a consumer’s ability to secure a mortgage, finance a car, or even start a business.      

Credit card payments in the Philippines are expected to rise by 17.2% this year to reach PHP 3.4 trillion¹, made possible by considerable growth in the number of Filipinos who hold credit cards. According to TransUnion’s latest Credit Perception Index, 40% of Filipinos now own credit cards – a 15 percentage point increase from the same time last year. The Index also showed that Filipinos intend to take better control of their financial situations, with 72% planning to access more educational materials in the next year.

In addition to learning more about how to manage credit, it’s important that Filipinos regularly check their credit score and report, with routine checks now made even easier via Lista. Credit reports can also help consumers be vigilant about potential fraud schemes, as well as promote better financial literacy and increased financial inclusion.

Since 2011, TransUnion has been dedicated to helping Filipino consumers and businesses make better and more informed financial decisions with the innovative use of data and insights. This ambition echoes Lista’s purpose, which is to provide Filipinos with digital tools and resources to support their journey towards financial wellness. Both TransUnion and Lista share the goal of making Filipinos’ lives better by making financial resources more accessible.

Key service features for Filipinos who want to enjoy the benefits of the collaboration between the two companies include:

1) A fully digitalized experience

Users can enjoy the convenience of requesting credit reports, validating identity documents, and settling payments through the Lista mobile app. This empowers consumers to manage their financial data anywhere, anytime.

2) Instant credit score and credit report access

The process of requesting and receiving a consumer credit report with their credit score included can take as little as five minutes, allowing Filipinos to quickly access their credit information, better understand their financial health and make timely and informed decisions.

3) Actionable tips for credit health

TransUnion credit reports include actionable insights to improve credit standing, build financial literacy, and foster healthy credit habits, helping consumers to take better control of their finances and make positive strides towards improvement.

“TransUnion is delighted to work with Lista on our shared goal of improving Filipinos’ access to essential consumer credit information,” said Amrita Bhattacharya, Chief Operating Officer for Asia-Pacific, TransUnion. “By leveraging our strengths in information and insights to empower individuals and businesses in decision-making, alongside Lista’s digital finance management platform, we can enhance credit access, improve financial literacy, and promote greater financial inclusion in the Philippines.”

“With credit card ownership growing and more Filipinos looking to borrow or use credit both in the short and long term, we believe this strategic partnership supports the national government’s goal of becoming an upper-middle-income economy,” she added. 

“At Lista, we are committed to fostering financial literacy by helping Filipinos recognize the importance of fiscal responsibility as early in their financial journeys as possible,” said Khriztina Lim, Co-Founder and Chief Operating Officer, Lista. “Through our collaboration with TransUnion, we aim to bridge the gap in financial literacy and accessibility to credit information in the Philippines.”

“By doing so, we can help Filipinos use that information to build better relationships with their credit and other financial products,” she said. “We believe that everyone should have equal access to financial opportunities, and this partnership will help bring that belief to life.”

All adult consumers in the Philippines can now request their TransUnion credit score and report through the Lista mobile app, which is available on both the Apple App Store and Google Play Store. For more details on the TransUnion-Lista partnership and the TransUnion consumer credit report, please visit here. 

¹Global Data: Philippines card payments market to surpass $60 billion in 2024, forecasts GlobalData

Manila, Philippines, August 21, 2024 – While more than two in five Filipinos (42%) say their income grew in the second quarter of 2024, concerns about financial stability were on the rise as a significant 44% of respondents fear they won’t be able to pay their bills and loans in full.

These were among findings from the Q2 2024 Consumer Pulse Study on consumers’ shifting behaviors and attitudes about current and future household budgets, spending and debt, published by TransUnion (NYSE: TRU), a global information and insights company.

Filipino households are financially cautious but hopeful for a more positive future

In Q2 2024, 42% of respondents reported an increase in income, slightly up from 41% in the same quarter last year. This optimism persists into the near future with most Filipinos (78%) also expecting an income increase in the next 12 months.

However, despite the positive income outlook, overall sentiment about household finances shows signs of financial strain. A significant 44% of respondents fear they won’t be able to pay their current bills and loans in full, which represents a three percentage point increase from the same quarter last year. The concern over financial stability was also reflected in a four percentage point drop of respondents feeling optimistic about their household finances (80%) in the next 12 months. Meanwhile, pessimism (8%) and neutrality (12%) edged up. The biggest concerns affecting household finances are inflation, job security and interest rates.

These concerns significantly influenced household spending. While only slightly more than one fifth (22%) of the households surveyed increased discretionary spending such as dining out, travel and entertainment, almost half (47%) say they cut back in Q2 2024.

Looking forward, Filipinos have a more positive spending outlook. Even though more than half (52%) expect an increase in bills and loans, 39% foresee increased retail shopping – reflecting notable jumps of seven and six percentage points respectively from the same quarter in 2023. Moreover, nearly half of Filipinos also expect additional medical spending (43%) and one third expect more large purchases (29%) over next three months.

“Although more Filipinos enjoyed increased household incomes in Q2 2024 and expect this trend to persist in the next 12 months, the adjustments they made to household budgets suggest a cautious approach to financial management,” said Weihan Sun, Principal of Research and Consulting for Asia Pacific at TransUnion. “This seemingly contradicting sentiment suggests a vigilant yet hopeful outlook as Filipinos continue to acclimate to economic challenges, navigating between necessary expenditures and financial prudence.”

Credit continues to be seen as important, but access remains an issue

In a time of economic uncertainties, the flexibility offered by credit is an important opportunity to support financial resilience. More Filipinos (63%) consider access to credit and lending products to be extremely or very important to achieve their financial goals – a jump of seven percentage points from Q2 2023. This sentiment is particularly strong among younger generations, with 69% of Gen Z¹ and 66% of Millennials stressing its importance, compared to only 40% of Baby Boomers.

However, credit access remains an issue. Only 38% of respondents feel that they have sufficient access to credit and lending products, a slight drop from 39% during the same quarter in 2023. This decline is more pronounced among Gen Z consumers (33%) – falling from 38% in Q2 2023. Millennials are the only cohort that feels they have improved access (41%), up from 39% last year.

Gen Z consumers also share the lowest confidence in obtaining approval for the credit or lending products they need. The group shows a decrease in confidence to 51% believing that they will be approved for such products in Q2 2024, down from 53% in the same quarter last year. Millennials are the only group with increased confidence among all generations, growing significantly from 47% to 57% over the same period.

Aligning with the increasing importance given to credit access, the intention to apply for new credit or refinance existing credit is also rising, with 54% of consumers saying that they plan to do so in Q2 2024, up from 45% in Q2 2023. Gen Z (63%) and Millennials (60%) are leading the trend.

The types of credit sought vary, with personal loans being the most popular among all generations (53%). Notably, 37% of Gen Z plan to apply for a credit card, while 41% of Millennials show a stronger interest in buy now, pay later services. This data underscores evolving credit needs and preferences across different age groups, reflecting broader economic and technological trends.

Smishing on the rise as consumers keep abreast of fraudulent schemes

Although nearly one third (30%) of Filipinos are unaware of being targeted by any fraud schemes, fraud attempts remained a significant concern among Filipinos, with a consistent 60% indicating that they had been targeted by a fraud scheme but did not fall victim. Another 10% admitted to being targeted and becoming victims, slightly up from 9% the previous year.

In terms of fraud schemes, phishing (fraudulent emails, websites, social posts, QR codes meant to steal data) remains the most common with 51% of respondents in Q2 2024 reporting being targeted. However, smishing (fraudulent text messages meant to trick people into revealing data) saw an increase with 44% of respondents noting it in Q2 2024, up from 40% the previous year. Both money/gift card scams (36%) and third-party seller scams on legitimate online retail websites (31%) remain steady. These findings highlight the diverse and evolving nature of fraud schemes through various channels and methods.

“Although the number of respondents unaware of fraud and those victimized remains relatively stable, smishing attempts have increased, indicating that fraudsters are diversifying tactics to target unsuspecting consumers. With a slight increase in successful attempts to defraud consumers, robust consumer education efforts on fraud prevention must continue to further build consumer awareness. Consumers are also encouraged to take more protective measures in closely monitoring their credit and finances to secure against the growing threats not only in the Philippines but across the world,” added Sun.

TransUnion’s Consumer Pulse Study surveyed 944 adult Filipino consumers from May 1 to 10, 2024. This quarterly survey examines shifting consumer attitudes and behaviors based on the dynamics of income, debt, and identity theft.

For more information, please view the full report of the TransUnion Q2 2024 Consumer Pulse Study.

¹ Gen Z, 18–26 years old; Millennials, 27–42 years old; Gen X, 43–58 years old; and Baby Boomers, age 59 and above

Manila, Philippines, July 26, 2024 – Global information and insights company and the Philippines’ first comprehensive private credit reference agency, TransUnion (NYSE: TRU), released its second annual Credit Perception Index (CPI) today, which examines Filipino perceptions towards credit, factors contributing to those perceptions, and broader implications for the nation as a whole. The study aims to inspire meaningful dialogues and actions to improve credit literacy and financial inclusion at large for the Philippines.

The TransUnion CPI for the Philippines currently stands at 69 – an increase of four points from last year. The increase reflects improved concept knowledge, product knowledge, trust and favorability in credit products among Filipinos¹.

This year’s study finds that most Filipinos (70%) have a general understanding of the concept of credit. Across credit products, Filipinos are most knowledgeable in installment payments (82%), followed by credit cards (76%), and buy now pay later (BNPL) services (74%). A five percentage points increase in knowledge is observed in both credit cards and BNPL. These two products also recorded a jump of six and three percentage points from last year in terms of trustworthiness – standing at 76% and 74% respectively, after only installment payments (80%). Moreover, BNPL (74%) and credit cards (72%) are growing in favor among the general population too, rising five and nine percentage points from 2023.

Despite these improvements, knowledge gaps still exist between the unbanked population and other populations. Currently, only 54% of unbanked Filipinos are knowledgeable about credit – a 16 percentage point deficit compared to the general population, and a 29 percentage point gap versus professionals from the financial technology (FinTech) sector. This represents a widening of the knowledge divide, as the disparity between the general and unbanked populations was at a smaller 11 percentage points last year.

Increasing adoption of credit products in the face of financial uncertainty

Financial sentiment among Filipinos appears to be less optimistic this year. Close to two fifths (38%) of the general population estimate their total wealth to be at PHP 250,000 and below. Moreover, the majority (75%) of surveyed Filipinos also consider themselves to be at best lower middle class or below.

Fewer Filipinos are optimistic that their financial situations will improve in the next year (84%) – dropping six percentage points from 2023. The study also reflects decreases in the number of Filipinos who expect their household income to increase next year (74%) and among those who can easily afford their daily necessities (68%), representing declines of nine and four percentage points respectively.

Unbanked Filipinos are struggling the most with the current situation. Almost three quarters (71%) often find themselves with limited money at the end of the month – a stark contrast to findings from both the general population (62%) and those in the FinTech sector (46%).

Despite these uncertainties, there is a noticeable shift towards diversifying financial tools with significant increases in owning credit-based products and bank accounts. Both credit cards (40%) and personal loans (25%) show increases of 15 and four percentage points from last year, while debit cards (52%), savings accounts (75%), and virtual bank accounts (29%) reflect increases of 12, 11, and nine percentage points, respectively. The majority of Filipinos (70%) also expressed a willingness to explore the usage of digital products and FinTech services in the next 12 months.

“The improved 2024 CPI score of the Filipino population is a product of collective efforts to foster greater financial literacy and inclusion. Despite financial uncertainties, 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 realize the benefits of being financially included.”

Credit perceptions shift as safety and security emerge as top concerns

The study also found decreases in agreement with negative descriptions and sentiments towards credit products. More people now see credit cards as convenient (38%) and BNPL as helpful (47%) – increases of six and four percentage points from last year, respectively. Fewer people also believe that using credit products leads to overspending (52%) – dropping five percentage points from 2023.

However, while fewer Filipinos associate credit cards with being risky (16%, a drop of 10 percentage points from 2023), 46% of them are concerned with being scammed while using credit products. Among segments of the population, over half of both the general (56%) and unbanked population (50%) express concerns about scams and fraud.

To further build trust in credit products, financial institutions must prioritize transparency, address security concerns, and establish a strong reputation. Almost a quarter (22%) of Filipinos prefer more information about products such as clear terms and conditions and transparency on hidden charges, 19% want enhanced security and reliability measures such as automated threat detection and incident response, while 16% consider the established reputation and trustworthiness of an institution.

“Upward trends in credit knowledge, product preferences, consumer trust as well as favorability provide huge opportunities for lenders. As consumers are growing more aware and receptive towards credit products and usage, the formal financial sector must undertake trust-building efforts to continue to shift perception towards credit as an empowering force in the lives of Filipinos,” said Yogesh Daware, Chief Commercial Officer at TransUnion Philippines. “By doing so, further financial inclusion can be made possible in the country and driving overall national development.”

About the TransUnion Credit Perception Index

The TransUnion Credit Perception Index (CPI) study comprised of a survey targeting 1,000 consumers of the general population, as well as an oversample of 200 FinTech professionals between March to April 2024. To gauge Filipino’s current attitudes and future receptivity towards credit, respondents were posed a series of questions to rate their knowledge, trust and favorability surrounding credit and other financial products. The study aims to provide a holistic view of credit perceptions across the landscape and gain further insights to address gaps surrounding public perceptions of credit, what may influence them, and what may shift their perceptions. CPI will be conducted annually to monitor changes prevailing Filipino credit attitudes and perceptions over time.

For more information and insights, please view the full report of the TransUnion Credit Perception Index study.

¹Concept knowledge refers to the general understanding of credit as the ability to acquire goods or services with payment to be made later. Product knowledge refers to awareness of credit-based products such as credit cards, loans, and installment payments. Trust and favorability pertain to credit perceptions and the credit products respondents are more inclined to using.  

Manila, Philippines, Jul 10, 2024 – Analysis by TransUnion, the global information and insights company (NYSE:TRU), shows that the credit card market in the Philippines continued to experience growth, with opportunities for further expansion through greater financial inclusion. According to insights shared at the recent 2024 TransUnion Financial Services Summit  in Hong Kong, credit card origination volumes have consistently grown every quarter since Q3 2022 and closed in on the milestone of one million new cards per quarter in Q3 2023, despite a normal seasonal dip that was observed in the following fourth quarter.

Total outstanding credit card volumes increased year-over-year (YoY) from 9.3 million cards in Q4 2022 to 11.2 million cards in Q4 2023. Over the same period of time, the credit card penetration rate, meaning percentage of adults holding at least one credit card, reached over 15% of Filipino adults. Together, these trends represent a growth of around 20% in both overall volume and penetration rate in the last year.

Additional data from the Credit Card Association of the Philippines (CCAP) was consistent with the trends observed by TransUnion. Its data showed credit card spending increased by 39% to reach PHP 853 billion in the first half of 2023 – a jump from the 29% increase in the previous year¹. The trends in card originations, total volume, penetration, and spending all indicate a promising growth trajectory for the credit card market in the country.

Younger generation emerging as a cornerstone for future market growth

A deeper dive into the TransUnion insights showed that Gen Z² Filipinos are emerging as significant contributors to the increase in credit card originations. The percentage share of overall originations among Gen Z Filipinos has more than doubled over the past five years - up from just under one in ten (9%) in Q3 2019 to more than one in five (22%) in Q3 2023. This share will likely increase as more Gen Z consumers reach adulthood.

Chart 1: New-to-Card originations by generation

Source: TransUnion Philippines database

Gen Z Filipinos also comprised a greater share of the New-to-Card segment of borrowers – they made up one-third (33%) of all New-to-Card borrowers in 2023. New-to-Card borrowers are those originating their first ever credit card on file according to TransUnion Philippines’ data.

Data from TransUnion’s most recent Q1 2024 Philippines Consumer Pulse Study  gave additional insight into factors positively affecting active credit participation among younger Filipinos. According to the study, almost all surveyed Gen Z Filipinos (98%) see access to credit and lending products as important to achieving their financial goals. They were also found to be some of the most frequent credit monitors in the country, consistently keeping an eye on their credit status to find the best credit offers accessible to them.

“The credit card market in the Philippines will continue to experience growth as demand remains high, especially amongst younger consumers. Data from TransUnion clearly shows that the younger generation of Filipinos, particularly Gen Z, are quickly emerging as a cornerstone for future market growth. This generation places a higher importance on accessing credit and lending products to achieve their financial goals. As more Gen Z consumers reach adulthood, we expect their share of the credit market to continue increasing,” said Weihan Sun, Principal of Research and Consulting for Asia Pacific at TransUnion.

Gender parity remains elusive

Despite the promising trend of younger generations participating in the credit market, TransUnion’s analysis showed that more effort is needed to foster greater financial inclusion for women. A breakdown of credit card originations data by gender revealed a gap between male and female borrowers.

Recent quarterly findings showed that male borrowers accounted for 60% of credit card originations, while females only comprised 40%. This ratio has remained relatively consistent over the past five years, highlighting a strong need to focus more on extending financial inclusion among female consumers. The number of active credit card accounts is also skewed heavily in favor of men who hold the majority share of a 61%-39% split.

“As TransUnion continues its pursuit of financial inclusion in the Philippines, closing the gender gap among credit card borrowers also emerges as a promising avenue for growth,” said Sun. “Lenders should consider offerings specifically tailored to female consumers to foster a more financially inclusive credit market, which at the same time would help them to further capitalize on the growth potential of an expanding market.”

New-to-Card borrowers represent further opportunity for growth

As credit card adoption in the Philippines continues to boom, New-to-Card consumers particularly represent a significant growth opportunity. These consumers accounted for nearly a third (30%) of all outstanding credit card balances during the first nine months of 2023, which is a significant jump from pre-pandemic levels when they made up just 19% in the full year of 2019. This trend signals significant opportunity for lenders to tap into the growing market of New-to-Card consumers in the country, which could, in part also be ascribed to value-added services such as reward points, instalment payment facilities, and discounts associated with these cards.

“While it’s an important factor for potential growth opportunities among lenders, bringing New-to-Card consumers into the formal financial system can also drive greater financial inclusion by catering to a larger demographic of borrowers. To that end, TransUnion Philippines remains committed to finding innovative ways to use alternative data to help more consumers access the credit they need,” said Sun. “We are focused on helping Filipinos who were previously deemed invisible by the formal financial system to access the credit they need to broaden their horizons, build wealth and attain greater flexibility, contributing to the development of the country as a whole.” 
 

¹ https://www.pna.gov.ph/articles/1212652

² Generations are defined as follows: Gen Z, born 1995–2010; Millennials, born 1980–1994; Gen X, born 1965–1979; and Baby Boomers, born 1944–1964