Adrian JohnsonTLDR:
- In a recent survey by Digido, 80% of Filipinos believe that formal credit options became more accessible in 2023.
- 57% of respondents had at least one outstanding loan from a formal lender, with non-bank financial institutions (NBFIs) with an online component being the most popular choice.
- Easy application processes, convenient repayment methods, and high probability of approval were cited as the biggest factors influencing Filipinos to apply for formal credit sources.
- 64% of surveyed Filipino borrowers reported always paying their loans on time, while 36% admitted to missing repayments.
- Personal loans were the most popular form of formal credit, followed by “buy now, pay later” loans, credit cards, and business loans.
- 40% of respondents reported a decrease in the amount of loans taken out in 2023 compared to the previous year.
- 56% of respondents preferred online channels for obtaining formal credit.
- 48% of respondents believed that loan rates needed improvement, while others desired better repayment schedules and more repayment methods.
A recent survey conducted by consumer finance company Digido revealed that Filipinos believe that formal credit options became more accessible in 2023. 80% of respondents agreed with this sentiment, with 42% claiming that the accessibility of formal credit options remained unchanged and 38% stating that access has improved compared to the previous year.
Among the survey respondents, 57% reported having at least one outstanding loan from a formal lender. The most popular choice for borrowing was non-bank financial institutions (NBFIs) with an online component, followed by traditional banks’ branches, digital banks, offline NBFIs, and apps or websites of traditional banks. Additionally, 48% of respondents admitted to borrowing from friends or family members.
The survey also highlighted the factors that influenced Filipinos to apply for formal credit sources. Easy application processes were cited by 60% of respondents, followed by convenient repayment methods and high probability of approval. Other positive factors included a convenient repayment schedule, application through a mobile app, and an attractive interest rate.
Assessing their payment habits, 64% of surveyed Filipino borrowers reported always paying their loans on time, while 36% admitted to missing repayments. Personal loans were found to be the most popular form of formal credit, with 54% of respondents availing this option in 2023. “Buy now, pay later” loans, credit cards, and business loans were also popular choices.
Overall, the survey indicated some room for improvement in terms of customer experience for all formal credit institutions. 48% of respondents believed that loan rates needed improvement, while 35% preferred a better repayment schedule and 33% desired more repayment methods.
Despite these areas for improvement, the survey showed that credit options are becoming more accessible in the Philippines, with digital platforms playing a significant role in the lending landscape.