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San Juan City residents line up to receive their second tranche of financial aid under the social amelioration program through ATM machines on September 10, 2020. Mark Demayo, ABS-CBN News

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GCQ against COVID-19

Arthur Fuentes

ABS-CBN News

MANILA -- Filipinos are increasingly shifting away from borrowing from relatives and friends as trust and familiarity with formal credit systems continue to rise, according to new findings from TransUnion’s 2025 Credit Perception Index (CPI).The report shows that the intention to borrow from family or friends registered the steepest decline among all borrowing sources — a notable reversal in a country where reliance on utang within close circles has long been the norm. “Many Filipinos have traditionally turned to family and friends for financial help,” said Peter Faulhaber, President and CEO of TransUnion Philippines. “However, this is starting to change.”The CPI study found growing openness toward bank credit and structured financial products, with interest rising for payday loans (+7 percentage points), micro loans (+7pp), mobile loans (+6pp), personal loans (+5pp), and buy-now-pay-later services (+5pp). These gains point to “a population that is increasingly open to exploring diverse financial products,” the report noted.Trust in credit products rose by six points, while knowledge of key financial tools — from payday and micro loans to house and personal loans — also expanded. These shifts suggest borrowers are becoming “more informed and discerning about how they use them,” Faulhaber said.<div>FINTECH LEADS THE WAY</div>Fintech has been a major factor in driving financial inclusion, the study also found. &quot;Just over nine in ten (91 percent) Filipinos reported using at least one FinTech product, with eWallets and digital banks remaining the most widely adopted,&quot; according to the TransUnion study. The number of eWallet users continues to rise as they are seen as the most convenient financial tool, followed by BNPL services and virtual banks.But barriers persist. High interest rates remain the biggest deterrent, cited by 59 percent of respondents, while 52 percent continue to fear fraud and scams — a concern amplified by rising digital transactions. The study argues that lenders must make products “accessible, but also affordable and secure” to sustain recent gains in inclusion.The findings point to a promising trajectory, driven by improved financial literacy and deeper engagement with formal credit. “More Filipinos can begin to build credit histories that prove their reliability as responsible borrowers,” the report said, adding that this lays the groundwork for broader financial empowerment.TransUnion said the country is “moving in the right direction toward a more financially inclusive and resilient future,” provided institutions strengthen transparency, security and consumer education.<div>DROP IN CONSUMER CONFIDENCE</div>Meanwhile, more Filipinos are expecting their financial situation to decline this year, compared to last year.Despite more than seven in ten Filipinos (73 percent) expecting their household income to rise, a growing number is anticipating a decline compared to 2024 (+7pp), according to the TransUnion study. Fewer consumers are confident that their finances will improve in the next three months (-7pp) and over the next year (-8pp), it added. Only 64 percent said they can easily afford day-to-day necessities.

TransUnion said this was a notable reversal in a country where reliance on utang within close circles has long been the norm.

TransUnion said this was a notable reversal in a country where reliance on utang within close circles has long been the norm.

Bawas utang -- Fewer Filipinos turning to family for loans amid better financial inclusion: TransUnion study

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Bawas utang -- Fewer Filipinos turning to family for loans amid better financial inclusion: TransUnion study

Arthur Fuentes,

ABS-CBN News

Published Nov 24, 2025 12:48 PM PHT

Read More:

family loan

utang

personal finance

formal lending channel

fintech

e-wallet

TransUnion

credit perception index

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