Filipinos shift borrowing to digital banks, TransUnion study shows

Filipino households are turning to digital banks for credit at a faster rate than any other lending source, even as their outlook on personal finances dims, a TransUnion survey showed.

The 2026 Credit Perception Index found that the share of Filipinos intending to borrow from digital banks rose 11 percentage points to 22%, the largest increase among all credit types tracked. Traditional banks gained 8 points to 34%, and credit cards rose 6 points to 43%.

“Compared to past credit sources, more Filipinos intend to borrow from digital banks,” TransUnion Philippines President and CEO Peter Faulhaber told reporters Wednesday.

Borrowing from family or friends remained the top preference at 45%, but that share fell 11 points from 56% a year earlier. TransUnion said borrowing preferences “continued to shift toward formal financial institutions.”

The rising preference for digital banks “appears to be supported by rising consumer familiarity and confidence,” the company said. Over half of respondents – 52% – reported using a digital bank. Perceived safety of digital banks also improved 11 points to 84%, just behind the 88% score for traditional banks.

Still, the survey painted a cautious picture on household finances. Only 64% of respondents said their financial situation was likely to improve over the next three months, and 73% said it could improve over the next year. Both figures were down 3 percentage points from 2025. Inflation, rising living costs, and energy prices were the leading concerns.

Despite those pressures, Filipinos reported taking more proactive financial steps. The share planning to borrow or use credit for purchases rose to 43% from 38%, and 66% said they planned to use a wider range of financial products and services. Seventy percent said they intended to explore new digital products and fintech services.

TransUnion found that 93% of Filipinos used at least one fintech product in 2026, up from 91% in 2025. E-wallets remained the most widely used at 81%, followed by digital banks at 52% and digital payment apps at 49%.

E-wallets have become a key entry point into formal finance. Nearly half of respondents – 46% – said an e-wallet was their first financial product, more than double the 20% who cited a traditional bank account. “E-wallets continued to be the FinTech product most commonly associated with positive impact and were also perceived as the most convenient digital financial service,” TransUnion said.

Overall credit perception rose to 75 from 73 in 2025, the highest since the index launched in 2023. “What stands out this year is that confidence in credit continued to improve even as consumers faced a more challenging economic environment,” Faulhaber said.

General knowledge about credit held steady at 69%, while knowledge of specific products improved across most categories. The gains were uneven. The unbanked population recorded a CPI score of 65, down from 67 in 2025, leaving a 10-point gap with the general population. TransUnion said the gap highlights the challenge of ensuring the shift toward formal and digital finance reaches financially excluded consumers.

For more on financial sector trends, see our stock market analysis and the TRU stock page.