Mindanao posts largest gain in credit perception - BusinessWorld

Mindanao Posts Largest Credit Perception Gains as National Index Hits New High

When TransUnion launched its annual Credit Perception Index in May 2023, the metrics heavily favored the economic gravity of the capital region. Three years later, the data tells a remarkably different story. According to the 2026 Credit Perception Index released by TransUnion, the Philippines’ overall CPI score climbed to 75 out of 100, marking a two-point jump from 2025 and hitting the highest mark recorded since the study’s inception. Yet the real shift isn’t happening in Manila. As BusinessWorld reported, Mindanao logged the most significant leap in the country, lifting its score from 74 to 77 and outpacing every other major island group.

That upward tick reflects a broader trend of financial confidence building well beyond the National Capital Region. Luzon, including NCR, inched up from 73 to 74, while the Visayas held steady at 75. For Peter Faulhaber, president and chief executive officer of TransUnion Philippines, the numbers signal a meaningful widening of the financial landscape. “It’s encouraging to see credit perception improved across the country this year,” Faulhaber said. “Every island group held or improved its score, which tells us that consumer confidence and knowledge in credit is building broadly — not only in and around the capital. That kind of nationwide progress is a strong and positive signal toward greater financial inclusion.”

Deconstructing Mindanao’s Surge Across Six Core Metrics

Mindanao’s jump wasn’t driven by a single lucky metric. The island group registered gains across six out of seven specific score factors tracked in the study. Product knowledge jumped seven points to 71, while favorability climbed six points to also hit 71. Stigmas associated with borrowing dropped significantly, rising five points to a strong 90. Product trust gained four points to reach 79, with credit messaging and reservations adding three points each to settle at 88 and 74, respectively. The only blemish in the regional breakdown was concept knowledge, which slipped three points year-on-year to 69.

Luzon and the Visayas experienced their own shifts during the survey period, which ran from May 6 to 26, 2026, and polled 1,000 consumers nationwide. In Luzon, five of the seven factors improved, though credit messaging dipped by a single point to 82. In the Visayas, softer scores in credit messaging and reservations were counterbalanced by rising product trust, which climbed three points to 78, alongside minor gains in product and concept knowledge.

Against an economic backdrop marked by elevated prices and consumer caution, financial priorities across the archipelago looked remarkably unified. Saving more ranked as the top planned action for the subsequent three months, cited by 86% of respondents in Luzon, 87% in the Visayas, and 86% in Mindanao. Accessing educational materials to improve financial literacy followed closely behind, capturing 77% of respondents in Mindanao, 74% in the Visayas, and 71% in Luzon.

Diverging Appetites for Borrowing and Digital Finance

Despite shared priorities around saving, the three island groups diverged sharply when it came to the actual intent to borrow. More than half of consumers in Mindanao—54%—stated they intended to use credit for purchases in the months ahead. That figure stands 11 percentage points above the general national population average, dwarfing the 42% recorded in the Visayas and the 40% in Luzon.

At the same time, the adoption of financial technology remains nearly ubiquitous across the country, though regional leaders vary depending on the product. The Visayas claimed the highest overall fintech adoption rate at 96%, closely followed by Mindanao at 95% and Luzon at 92%. Electronic wallets, digital banks, and online payment apps dominated usage across all three regions. However, as Sunstar reported, the Visayas recorded a high e-wallet penetration of 85% compared to the 81% national average, while Mindanao leaned harder into digital banks, posting a 57% uptake versus the 52% national average.

When consumers sought out financial knowledge, social media served as the primary gateway everywhere, leading with 69% in the Visayas, 64% in Mindanao, and 57% in Luzon. E-learning platforms claimed the second spot across all three regions. Yet the third most popular channel highlighted regional differences: Mindanao residents relied heavily on traditional banks and financial institutions at 53%, whereas consumers in Luzon and the Visayas turned to family and friends.

“There is no one-size-fits-all approach to advancing financial inclusion,” Faulhaber noted, emphasizing that granular regional insights remain essential for stakeholders crafting targeted solutions and educational strategies.