E-wallets overtake financial institution accounts as Filipinos’ first monetary product — TransUnion research

Considerations surrounding excessive rates of interest and fears of getting scammed stay the highest limitations to credit score use amongst Filipinos

MANILA, Philippines – An e-wallet account is now the primary monetary product of over a 3rd of Filipinos, a current research by credit score bureau TransUnion discovered.

Based on TransUnion’s 2025 Shopper Notion Index (CPI), 35% of Filipinos mentioned their first monetary product was an e-wallet account, surpassing accounts with conventional banks. This was primarily pushed by youthful generations comparable to Gen-Z and Millennials.

Some monetary know-how merchandise generally utilized by Filipinos are e-wallets (77%), on-line banks (51%), and digital fee apps (47%).

“The sturdy efficiency of FinTech customers and the narrowing hole between the unbanked, we predict, mirror an encouraging momentum towards a better monetary inclusion based mostly on this 12 months’s survey,” mentioned TransUnion Philippines’ president and chief government officer Peter Faulhaber.

How do Filipinos view credit score?

Faulhaber famous that 69% of Filipinos have been conscious of the final definition of credit score, and belief in credit score merchandise jumped six proportion factors to 76%.

Extra unbanked Filipinos additionally gained a greater understanding of formal credit score merchandise comparable to loans. TransUnion additionally discovered that Filipinos are most serious about purchase now, pay later (BNPL) companies, in addition to private loans, cellular loans, and micro loans.

15% extra Filipinos additionally mentioned they wished to borrow from conventional and digital banks, whereas much less intend to borrow from household or associates.

“Apparently, practically one in 4 respondents expressed an intent to borrow or use credit score for purchases, probably signaling a shift in direction of utilizing credit score as a sensible device slightly than one thing to keep away from,” Faulhaber defined.

Regardless of Filipinos’ rising understanding of credit score merchandise, considerations surrounding excessive rates of interest and fears of getting scammed stay the highest limitations to credit score use.

Faulhaber mentioned these considerations underscored clients’ want for stronger assurances by means of safer and extra supportive credit score environments.

“We additionally requested in our survey what lenders can do to encourage better client credit score adoption. Generally, there are six areas that we recognized: extra transparency, higher rates of interest, improved customer support, enhanced safety, stronger repute, and better accessibility,” he mentioned.

TransUnion’s 2025 CPI was carried out between March 27 and April 7. The credit score bureau and third-party pattern supplier Dynata surveyed 1,165 customers, together with 212 unbanked Filipinos, to evaluate Filipinos’ notion of credit score.

Round 37.6 million Filipinos stay unbanked, one of many highest in Southeast Asia.   – Rappler.com