Filipinos' CPI score drops to 73 from 74 due to digital fraud worries

Filipinos' credit perception index (CPI) score slightly declined this year to 73 out of 100, down from last year's score of 74, according to TransUnion Philippines.

The decline was primarily attributed to a drop in credit messaging receptivity due to growing concerns about digital fraud and high interest rates.

Despite the slight decrease, foundational knowledge of credit remains strong with 69 percent familiarity among consumers, while improvements were noted across various credit products such as payday loans (up from 46% to 54%), micro loans (from 46% to 53%), mortgages (from 58% to 63%), personal loans (from 70% to 74%), and mobile loans (from 62% to 66%).

FinTech users recorded the highest CPI score of 74, with the strongest overall credit knowledge at 71%, compared to the general population's 69% and unbanked individuals' 56%. Concerns about scams and fraud significantly impacted credit usage among all surveyed groups.

Despite these concerns, TransUnion reported growing interest in specific credit products such as payday, micro, and personal loans, indicating a positive trend towards financial literacy and trust in credit products.