TLDR: Credit Options Becoming More Accessible in the Philippines Says Digido
In a survey conducted by consumer finance company Digido, 80% of Filipinos believe that formal credit options became more accessible in 2023. Of the respondents, 42% believed that the degree of accessibility of formal credit options remained unchanged, and 38% revealed that their access to formal credit has improved compared to the previous year. The survey also found that 57% of respondents had at least one outstanding loan from a formal lender.
- 80% of Filipinos believe formal credit options became more accessible in 2023.
- 42% of respondents believed the degree of accessibility of formal credit options remained unchanged.
- 38% revealed that their access to formal credit has improved compared to the previous year.
The survey found that non-bank financial institutions (31%), traditional bank branches (25%), and digital banks (14%) were the most popular formal lenders among respondents. Personal loans were found to be the most popular formal credit option, followed by “buy now, pay later” loans, credit cards, and business loans. Easy application processes, convenient repayment methods, and a high probability of approval were identified as the biggest factors influencing Filipinos to apply for formal credit.
64% of surveyed Filipino borrowers reported that they always pay their loans on time, while 36% admitted to missing repayments. The survey also revealed that 40% of respondents took out fewer loans in 2023 compared to the previous year, while 28% increased their borrowing. Additionally, 41% of respondents indicated a desire to raise their borrowing limit, and 56% preferred to obtain formal credit through online channels.
However, there is room for improvement in customer experience, with 48% of respondents stating that loan rates need improvement and 35% preferring a better repayment schedule. 33% of respondents also expressed a desire for more repayment methods.
