Mindanao credit perception posts biggest gain among Philippine island groups

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Mindanao credit perception gain

Highlights

Mindanao’s Credit Perception Index rises to 77 in 2026 from 74 in 2025, marking the largest gain among the Philippine islands.
Mindanao leads in improvements in product knowledge (+7 to 71), favorability (+6 to 71), and stigma reduction (+5 to 90), while concept knowledge drops 3 points to 69.
Fintech adoption reaches 96% in the Visayas, 95% in Mindanao, and 92% in Luzon, with electronic wallets, digital banks, and online payment apps dominating usage.

Credit perception gains and score drivers

As reported by BusinessWorld, citing TransUnion, Mindanao’s Credit Perception Index rises to 77 in 2026 from 74 a year earlier, marking the largest improvement among the three major island groups in the Philippines. Luzon, including the National Capital Region, posts a one-point increase to 74 from 73, while the Visayas remains unchanged at 75.

TransUnion Philippines President and Chief Executive Officer Peter Faulhaber says the broad improvement signals rising consumer confidence and knowledge in credit beyond the capital, supporting wider financial inclusion. In Mindanao, six of seven score factors improve, led by product knowledge, up seven points to 71, favorability, up six points to 71, and stigmas, up five points to 90.

Product trust in Mindanao increases by four points to 79, while credit messaging and reservations both gain three points to 88 and 74, respectively. Its concept knowledge score is the only factor to decline, falling three points year on year to 69.

In Luzon, credit messaging is the only weaker component, slipping by one point to 82. Reservations rise three points to 72, stigmas increase two points to 88, product trust climbs three points to 65, and both concept knowledge and product knowledge improve to 76 and 68, while favorability is unchanged at 68.

In the Visayas, lower scores for credit messaging and reservations, both down three points to 70 and 83, offset gains in product trust, product knowledge and concept knowledge. Stigmas and favorability there hold steady at 88 and 67, respectively.

Financial behavior and fintech adoption trends

Across all three island groups, respondents say they plan to take a more proactive approach to personal finances over the next three months as elevated prices shape a more cautious economic backdrop in 2026. Saving more is the most common planned action in Luzon and Mindanao at 86% and in the Visayas at 87%.

Accessing more educational materials ranks next, reaching 71% in Luzon, 74% in the Visayas and 77% in Mindanao. Interest in exploring new digital products and FinTech services also stays high at 69% in Luzon, 71% in the Visayas and 73% in Mindanao, while plans to use a wider range of financial services and products reach 63%, 66% and 72%, respectively.

Borrowing intentions vary more sharply by region. In Mindanao, 54% say they intend to borrow or use credit for purchases in the months ahead, compared with 42% in the Visayas and 40% in Luzon.

Fintech adoption is highest in the Visayas at 96%, followed by Mindanao at 95% and Luzon at 92%. Electronic wallets, digital banks and online payment apps are the most widely used fintech products in each island group, with the Visayas showing stronger e-wallet usage at 85% against the general population’s 81%, while Mindanao records higher digital bank usage at 57% versus 52% for the general population.

Social media is the leading source of financial product information in all three island groups, at 57% in Luzon, 69% in the Visayas and 64% in Mindanao. E-learning platforms also rank among the top three sources, while banks and financial institutions feature strongly in Mindanao and family and friends remain important channels in Luzon and the Visayas.

In our earlier report on Philippine e-commerce payment trends, we noted that cash-on-delivery remains widely used even as digital payment adoption accelerates. The piece highlighted rising QR and bank-transfer usage, but also pointed to persistent checkout friction—many shoppers abandon purchases when their preferred method isn’t available—keeping pressure on merchants to offer broad, secure payment options.

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