Filipinos See Improved Household Finances and Greater Optimism, Survey Shows
New survey results reveal that more Filipinos are experiencing improved household finances and increased optimism about their income and financial situations, despite concerns over a potential global economic recession in 2024. The Third Quarter 2023 Consumer Pulse Study conducted by TransUnion, a global information and insights company, found that 52 percent of the 1,000 Filipino survey respondents reported better-than-planned household finances in Q3 2023, representing a three-percentage-point increase from the previous quarter.
Furthermore, the survey showed that 44 percent of respondents reported an increase in income during the third quarter, a slight increase of three percentage points from the previous quarter. This improvement in household finances has also led to an increased readiness among Filipinos to access credit. The survey revealed that 96 percent of respondents view access to credit and lending products as an important means of achieving their financial goals.
In terms of credit access, the number of Filipinos comfortable with owning credit accounts such as loans and credit cards has increased by six percentage points to 41 percent in Q3 2023, up from 35 percent in Q2 2023. This growing comfort with credit products is also reflected in Filipinos’ future plans, as more than half of the respondents (51 percent) expressed their intention to apply for a new personal loan within the next year, a five-percentage-point increase from the previous quarter.
Pia Arellano, president and CEO of TransUnion Philippines, highlighted the positive impact of credit on people’s lives, stating, “Credit can be a powerful tool that helps people improve their lives. It is a very encouraging sign to see more Filipinos growing comfortable with credit and using it to unlock better economic opportunities.” Arellano also emphasized the role of digital banks and financial technology players in expanding access to credit and promoting financial inclusion.
The survey findings also revealed that Filipinos are accessing credit products from new sources. Around 32 percent of respondents reported having existing credit cards or loans from digital banks, while 26 percent obtained loans from FinTech firms. However, when choosing a new digital loan provider, 42 percent of Filipinos in Q3 2023 still prioritize the institution that offers the lowest interest rate, regardless of whether it is a traditional bank, digital bank, or FinTech institution.
Apart from seeking affordable credit products, the speed of approval has emerged as an influencing factor. The survey found that 91 percent of Q3 2023 respondents consider real-time approval when applying for a digital loan to be important, representing an increase of three percentage points from the previous quarter.
In terms of online transactions, the survey revealed that more Filipinos are conducting their transactions online, with 58 percent of respondents reporting completing more than a quarter of their transactions online, a two-percentage-point increase from the previous quarter. However, cybersecurity concerns have also grown among Filipinos, with 49 percent expressing worries about cybersecurity threats, a three-percentage-point increase from the previous quarter.
The top concerns regarding cybersecurity among respondents were stolen identities, data breaches, and credit card fraud, cited by 65 percent of respondents. Despite the growing concerns, 66 percent of respondents who did not take action regarding cybersecurity concerns in the last 60 days admitted that they were unsure of what to do, representing an increase of 11 percentage points from the previous quarter.
Pia Arellano emphasized the importance of cybersecurity in an increasingly internet-centered world, stating, “As more aspects of our lives move online, the role of cybersecurity in this progressively internet-centered world is vital.” Arellano also highlighted the commitment of TransUnion Philippines to provide identity proofing and fraud prevention solutions to keep consumers and businesses safe online.
The survey, conducted from July 6 to 24 this year, involved 1,000 adult Filipino consumers.
