Philippine credit market set to grow as inflation eases

The Philippine credit market is expected to continue growing as inflation has eased to 1.3 percent in May, according to TransUnion.

A survey by TransUnion showed that 37 percent of Filipinos plan to increase spending on retail purchases such as clothing and electronics over the next three months, while another 29 percent expect to boost discretionary spending on activities like dining out and travel.

TransUnion predicts rising retail sales will drive more credit card transactions, buy-now-pay-later usage, and small-ticket installment loans, with lower inflation fostering a supportive environment for consumer credit growth.

The firm's president noted that stronger repayment capacity among existing borrowers and higher demand from new-to-credit consumers, especially in the small-ticket and revolving credit segments, will sustain this momentum.

To manage risk while growing their portfolios, lenders are encouraged to use data-driven strategies and advanced analytics, with TransUnion aiming to ensure greater access to financial tools for Filipinos to thrive economically.