Filipino consumers remain broadly optimistic about their financial future, but rising living costs are increasingly reshaping how households spend, save and borrow, according to a study of TransUnion Information Solutions Inc.
In its Consumer Pulse Study for second quarter, it said that although there were expectations of finances will continue to improve by next year, this is tempered by the current higher consumer prices and ongoing uncertainty surrounding the broader economic environment.
‘Households responded by reducing discretionary spending, postponing
large purchases and becoming more selective about recurring expenses. At the same time, a growing proportion expected higher bills and loan obligations, suggesting affordability pressures remain elevated despite resilient income expectations and improving confidence in job security,’ the study said.
Concerns about a recession and rising interest rates also increased to 44 percent from 40 percent last year, while concern over job availability and security eased to 54 percent from 59 percent, suggesting employment conditions remain relatively stable despite broader economic uncertainty.
Demand for credit remained strong, it said, mainly for personal loans and credit cards.
Mortgage demand, meanwhile, has softened amid affordability challenges.
‘However, barriers to financial inclusion persist, with many consumers abandoning credit applications due to high borrowing costs, perceived eligibility concerns and lengthy approval processes,’ it said.
TransUnion said these findings highlight ongoing opportunities for lenders to expand access through more inclusive underwriting, streamlined application experience, greater use of alternative data and more tailored product offerings.
It said 48 percent of consumers indicated they plan to apply for new or refinance existing credit, down from 51 percent last year.
Personal loans remained the most sought-after product, with application intent rising to 52 percent from 45 percent, while demand for credit cards increased to 35 percent from 31 percent.
In contrast, planned applications for mortgages declined to 12 percent from 17 percent, reflecting continued affordability pressures and higher borrowing costs.