Pinoys' credit perception deteriorates - study

The credit perception of the unbanked segment of Filipinos has deteriorated as they struggle the most in their financial situations, highlighting the need to expand financial inclusion across the population.

- LOUISE MAUREEN SIMEON

TransUnion Philippines launched yesterday the Credit Perception Index (CPI) 2024 for the country that looked into how Filipinos see credit across multiple dimensions.

As such, the CPI showed a widening gap between the unbanked segment and the general population, especially in terms of credit knowledge.

For 2024, the CPI of the unbanked stood at 39 out of 100, significantly lower than the 53 last year, reflecting a further deterioration of credit perception and knowledge.

TransUnion Asia-Pacific principal of research and consulting Weihan Sun said bank loans of most of the unbanked Filipinos were declined due to insufficient documentation, no proof of income and lack of credit history.