December 11, 2024 | 12:00am
MANILA, Philippines — A majority of Filipinos expect their income to grow next year, but many households still anticipate financial strain amid rising bill and loan payments, results of a survey by TransUnion showed.
Based on its Consumer Pulse Report Q4 2024, TransUnion said 79 percent of Filipino respondents expressed optimism about their income growth next year.
However, 49 percent also expressed rising expectations of bills and loan payments, higher than the 43 percent registered in the same period last year.
TransUnion noted that nuanced shifts were observed in both household financial health and consumer outlook in the fourth quarter of the year.
It added that a total of 84 percent of households experienced either income growth (44 percent) in the past three months or maintained their income levels (40 percent), highlighting stable income trends.
“However, debt repayment remained a pressing challenge as over two in every five Filipinos (42 percent) reported difficulty paying bills and loans in full, maintaining a stable figure from Q4 2023 at 43 percent. This consistent trend underscores a sustained financial strain across many of the population,” TransUnion said.
It added that most consumers or 80 percent of respondents viewed inflation for everyday goods as the most pressing concern affecting their household finances in the next six months, followed by worries over job security (59 percent) and interest rates (41 percent).
TransUnion emphasized that these findings underscored caution among Filipino consumers regarding financial resilience – possibly suggesting broader implications for household spending and debt management in the coming year.
“In the face of sustained financial pressure, consumers in the Philippines have increasingly adjusted spending and saving behaviors. While more are shifting away from long-term savings, reliance on credit rose as almost one in five (17 percent) increased credit usage in Q4 during the holiday season,” TransUnion principal of research and consulting for Asia Pacific Weihan Sun said.
“These behaviors reflect a tendency to prioritize immediate financial flexibility over long-term security as households attempt to bridge short-term financial needs in a high-cost environment. This might elevate default risks in certain debt categories which lenders should be cautious of. Additionally, these financial behaviors highlight the need for further credit education among a population where most consumers are relatively new to credit,” Sun added.
Meanwhile, results of the survey also showed that more Filipinos are recognizing the importance of credit as 64 percent said access to credit is highly important to achieving their financial goals, higher than the 58 percent last year.
“This trend was led by Gen Z Filipinos with 68 percent seeing credit access as crucial,” TransUnion said.
Results of the survey, however, indicated that access to credit remained limited as only 42 percent of consumers felt adequately served and 25 percent of all respondents reported insufficient access, with the Gen Z feeling the most underserved.
Despite this, overall interest in new credit was strong with 53 percent planning applications for new credit or refinancing existing credit in the next year, largely for personal loans, buy now, pay later and credit cards.
“These findings signal opportunities for lenders to meet the demand for accessible products especially among younger Filipinos eager to leverage credit for better financial flexibility,” TransUnion said.
TransUnion also highlighted that more Filipinos are monitoring their credit reports more frequently as well as over 71 percent of respondents now check their credit report at least once a month, a slight increase from last year’s 67 percent.
Additionally, 74 percent of respondents viewed credit monitoring as highly important.
“This shift towards proactive monitoring suggests consumers are becoming more mindful of their credit health and responsibilities. However, despite this positivity, 16 percent of consumers did not monitor their credit at all, which indicates that further education is needed in a rapidly growing credit market,” TransUnion said.
Moreover, results of the survey showed that fraud remains a significant concern of Filipino consumers, and more than half of Filipinos (55 percent) reported encountering fraud attempts without falling victim.
In addition, those unaware of fraud attempts increased from 28 percent last year to 35 percent in the fourth quarter of 2024, while the percentage of consumers who fell victim grew slightly from eight percent last year to 10 percent.
“These findings highlight a need for enhanced protective measures, as phishing (45 percent), smishing (41 percent) and gift card scams (36 percent) were the most frequent fraud schemes experienced among those Filipino consumers who reported being targeted,” TransUnion said.
It added that growing cybersecurity challenges are also evident as 35 percent of Filipinos reported being notified that their personal data was exposed in a data breach in the fourth quarter of 2024.
While around 35 percent experienced data breach incidents this quarter, 12 percent of the consumers reported that they have taken no action in the last 60 days due to cybersecurity concerns. Among them, 55 percent said they were unsure of what steps to take to better protect themselves from these threats, emphasizing an ongoing knowledge gap that needs to be addressed urgently.
“The threat of digital fraud continues to impact the online experiences of Filipino consumers. As these threats evolve, empowering consumers through clear guidance and accessible security tools could help alleviate their uncertainty and prevent breaches more effectively. By working collectively to foster a culture of awareness and provide necessary resources, we can build a safer digital environment for all Filipino consumers and businesses,” Sun said.
TransUnion’s Consumer Pulse Study surveyed 938 adult Filipino consumers from Sept. 25 to Oct. 17, 2024. This quarterly survey examines shifting consumer attitudes and behaviors based on the dynamics of income, debt, and identity theft, with respondents ranging from Gen Z, 18–26 years old; Millennials, 27–42 years old; Gen X, 43–58 years old; and Baby Boomers, aged 59 and above.
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