‘Credit awareness outside NCR catches up’

March 8, 2026 | 12:00am

MANILA, Philippines — Filipinos in the provinces are catching up with their counterparts in Metro Manila and nearby growth hubs in terms of credit awareness and trust, signaling a broadening participation in the country’s credit economy.

In its 2025 Credit Perception Index (CPI), TransUnion Philippines said credit sentiment among consumers outside Metro Manila rose to a score of 73, matching the level recorded among respondents within the capital region.

The improvement marks a shift from the previous year, when credit perception outside the capital lagged at 71. The index measures consumer knowledge, trust and favorability toward credit and financial products.

The increase was driven largely by stronger product trust, which rose by 11 points, and improved product knowledge, up six points, reflecting what the company described as sustained efforts by both the public and private sectors to expand financial education and access nationwide.

“Filipinos outside the capital region are making notable strides, driven by sizable gains in both knowledge and trust of credit products,” TransUnion Philippines president and CEO Peter Faulhaber said.

“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,” Faulhaber said.

The study also showed that intent to use credit is now nearly identical across regions. About 38 percent of consumers in the capital and 39 percent outside the capital said they were willing to use credit for purchases within the next three months from the time of the survey.

However, borrowing preferences still differ depending on location. Consumers in the capital remain more inclined toward traditional credit tools, with 44 percent expressing interest in credit cards compared with 36 percent outside the capital.

Outside the capital, demand is growing faster for alternative credit channels. Interest in mobile loan apps reached 33 percent compared with 27 percent in the capital, while money lending services attracted 29 percent versus 21 percent.

Microloan providers also saw stronger interest at 22 percent compared with 17 percent among capital-based respondents.

TransUnion said this pattern suggests that consumers in regions with fewer traditional banking touch points are turning to faster and more accessible credit options.

The preference for alternative lending products coincides with higher reported knowledge of small-ticket credit tools among respondents outside the capital.

The study found perceived understanding of mobile loans at 65 percent versus 60 percent among capital residents. Knowledge of microloans was also higher at 54 percent compared with 44 percent, while payday loans registered 54 percent versus 49 percent.

These figures indicate that regional consumers are becoming more familiar with non-traditional credit products, a trend that may reshape lending patterns beyond major urban centers.

“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,” Faulhaber said.

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