Manila, Philippines – Global information and insights company and the Philippines’ first comprehensive private credit reference agency, TransUnion (NYSE: TRU), projects that steady economic growth and easing inflation in the second quarter of 2025 are creating a favorable environment for accelerated credit expansion in the country.
The Philippine economy expanded by 5.5% year-over-year (YoY) in Q2 2025 despite global headwinds and tariff uncertainties. This growth is supported by strong household spending (+5.5% YoY) , a rebound in agriculture (+5.7% YoY) and headline inflation dropping to 1.4% in June. With the Bangko Sentral ng Pilipinas (BSP) reducing policy rates to 5.25% by end of Q2 and further reductions possible, borrowing conditions are becoming more supportive for both consumers and lenders. As of August 2025, rates have been further adjusted to 5%.
Consumers grow more open to using credit, but hesitations remain
Besides a more favorable credit environment, findings from this year’s TransUnion Credit Perception Index (CPI) show that the general population recorded a CPI score of 73 out of 100 (-1 point from 2024), reflecting overall stability in credit sentiment. This stability was supported by increasing trust in credit products (+6 points from 2024). Notably, a growing number of consumers also expressed the intention to borrow from formal credit channels such as traditional banks (+15 percentage points [pp]), virtual banks (+9pp) and credit cards (+5pp).
Despite increasing openness, external factors such as high interest rates (59%) and fraud concerns (52%) continue to hold back Filipinos from actively using credit. While trust is improving, hesitations remain—stronger assurances through safer and more supportive credit environments are required to translate openness to real actions.
“We are seeing a growing willingness among Filipinos to embrace credit as a tool for progress, but they want to know they can do so with confidence,” said Peter Faulhaber, President and CEO of TransUnion Philippines. “By ensuring that borrowing is both responsible and empowering, we can help turn openness into meaningful action that benefits households and the economy alike.”
Credit demand rising amid stable risk
According to TransUnion’s bureau data, formal credit demand in the Philippines (as measured by credit enquiries) surged by 49% in the first half of 2025, led by personal loans (+75% YoY) and credit cards (+50% YoY). Card balances among Filipino consumers have continued to grow steadily as cardholder activity has remained strong over recent years. Meanwhile, delinquency rates have also stayed stable, signaling that despite increased borrowing activities, consumers are largely keeping up with their payment obligations responsibly.
Enabling growth and financial resilience
The combination of economic expansion, improving openness to credit, and stronger credit demand with responsible repayment behavior, presents lenders in the Philippines with a unique opportunity to grow their portfolios. However, consumer hesitations highlight the importance of trust, education and tailored engagement strategies.
“At TransUnion, our mission is to equip both consumers and lenders with the data, tools and insights they need to thrive in today’s evolving credit landscape,” added Faulhaber. “By fostering responsible access to credit and empowering lenders to expand safely, we help build a stronger, more financially resilient Philippines. As external conditions improve, it is essential for lenders to capitalize on growth opportunities, act swiftly amid easing rates and maintain vigilance through trust and sound risk management—ultimately enabling deeper, more confident engagement with increasingly credit-ready consumers.”
TransUnion will host its inaugural 2025 Philippines Financial Services Summit in mid-September, where it will unveil deeper insights into the evolving consumer credit landscape and engage industry stakeholders in shaping the future of financial inclusion nationwide.