PH credit demand grows, but trust gap hinders inclusion

The Philippines’ credit market is expanding rapidly, but a persistent trust gap continues to limit access to financial services for millions of Filipinos, industry leaders warned at the inaugural CIBI Impact 2025 summit.

Held in Quezon City, the summit convened over 150 key stakeholders from regulatory bodies, financial institutions, and fintech firms to confront systemic barriers and call for coordinated action to strengthen the country’s financial inclusion efforts.

“As the world becomes more digital and more connected, the need for reliable, responsible, real-time data becomes greater than ever,” said CIBI Information, Inc. President and CEO Pia Arellano.

“Our mission is to innovate and collaborate so that trust in data keeps pace with demand—because only then can we build a future where no Filipino is left behind,” she added.

While demand for credit continues to grow, significant challenges persist.

Metrobank Chief Economist Nicholas Mapa observed that Filipinos are increasingly turning to credit, with a surge in new applications.

CIBI Chief Analytics Officer Harley Chan reported a notable rise in tradelines, driven largely by the adoption of Buy Now, Pay Later (BNPL) products, which are outpacing traditional forms of credit such as mortgages, auto loans, and credit cards.

This trend is enabled by a fintech-driven digital shift, stronger Bangko Sentral ng Pilipinas (BSP) and government-led initiatives, and better compliance in data submissions to the Credit Information Corporation (CIC).

CIC President and CEO Atty. Ben Baltazar revealed that over 10 million credit reports had been accessed by mid-2025, reflecting growing consumer engagement and demand for financial visibility.

Still, the trust gap remains a formidable barrier.

“Forty-nine percent of Filipinos are still unbanked, and only 1% of their loan applications are accepted due to insufficient credit data,” said JurisTech CEO See Wai Hun, citing widespread financial exclusion.

High delinquency rates, fraud-related losses, and inconsistent data reporting further erode trust between borrowers and lenders, limiting responsible lending opportunities and stalling the country’s credit potential.

“Trusted data is not just a system requirement—it’s the foundation of financial inclusion,” said CIBI Vice President for Service & Industrials Ivy Ramirez.

She noted that quality data enables 30% faster decision-making, improves operational efficiency by 25%, and increases profitability by 19%, while reducing time to revenue by 63%.

Without accurate and transparent data, however, institutions risk poor lending decisions and financial losses, while consumers face rejection and delayed access to much-needed financing.

CIBI and its partners—including FICO, JurisTech, and FinScore—demonstrated how ecosystem-led strategies and digital tools can bridge these gaps, expand credit visibility, and reach underserved sectors.

Collaboration emerged as a central theme of the summit, with calls for shared accountability, policy alignment, and innovation to adapt to the evolving credit landscape.

“No single institution can solve systemic barriers alone,” said Arellano.

To reinforce its commitment, CIBI announced upcoming initiatives including the Fraud Bureau and CIBI Advanced Tier platform, both aimed at enhancing transparency, ensuring compliance, and bolstering system-wide trust.

Despite the clear demand, Arellano stressed that building trust remains the industry’s most urgent task.

“Only when trust matches the speed of innovation can we unlock a future where credit access is truly inclusive,” she said.

By anchoring reform efforts on trusted data and cross-sector collaboration, stakeholders hope to transform rising demand into tangible financial access, enabling more Filipinos to participate meaningfully in the country’s economic growth.