Mindanao consumers lead in willingness to borrow, but savings remain a priority

CAGAYAN DE ORO CITY (November 11)  — Mindanao consumers are more willing to take out loans or use credit for purchases than their counterparts in Luzon and the Visayas, even as saving money remains a priority across the country, a new study by credit information company TransUnion has found.

The findings point to a growing openness to credit in Mindanao, raising questions about how financial institutions can expand access to borrowing while ensuring consumers understand the costs and risks of debt.

TransUnion’s 2026 Credit Perception Index (CPI) found that 54 percent of Mindanao respondents intended to use credit in the coming months, significantly higher than the 42 percent recorded in the Visayas and 40 percent in Luzon.

The study surveyed 1,000 Filipino consumers from May 6 to 26, examining their knowledge, attitudes and trust in credit and other financial products.

The country’s overall credit perception score climbed two points to 75 out of 100, its highest since the index was introduced in 2023. Mindanao registered the biggest improvement, gaining three points to 77, compared with 74 in Luzon and 75 in the Visayas.

TransUnion attributed Mindanao’s improvement to gains in six of the seven indicators measured, including knowledge of financial products, attitudes toward credit and trust in financial services.

“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,” TransUnion Philippines president and CEO Peter Faulhaber said.

Borrowing intentions versus savings goals

Despite their greater willingness to use credit, Mindanao consumers shared the same immediate financial priority as other Filipinos: saving more money.

About 86 percent of respondents in Mindanao and Luzon planned to increase their savings over the next three months, slightly below the 87 percent recorded in the Visayas.

Mindanao respondents also showed a strong interest in improving their financial knowledge. Some 77 percent planned to access more educational materials, compared with 74 percent in the Visayas and 71 percent in Luzon.

The figures suggest that greater openness to credit is developing alongside an expressed desire to strengthen personal financial management.

Digital finance shapes consumer behavior

The study also found widespread use of financial technology services across the country, with adoption reaching 95 percent in Mindanao, 96 percent in the Visayas and 92 percent in Luzon.

E-wallet adoption was highest in the Visayas at 85 percent, four percentage points above the national average. Mindanao, meanwhile, recorded digital banking adoption of 57 percent, exceeding the national average of 52 percent.

Social media remained the leading source of information about financial products, cited by 64 percent of Mindanao respondents, compared with 69 percent in the Visayas and 57 percent in Luzon.

For Faulhaber, the regional differences underscore the need to tailor financial inclusion programs to consumer behavior and preferences rather than rely on a uniform national approach.

“There is no one-size-fits-all approach to advancing financial inclusion,” he said, emphasizing the importance of understanding local needs in developing relevant financial services, education programs and consumer engagement strategies.

For Mindanao, however, the challenge goes beyond getting more people to use credit. Greater willingness to borrow must be matched by accessible financial education, transparent lending terms and safeguards against excessive debt, particularly as digital financial services become more deeply embedded in everyday transactions.

A higher willingness to borrow is not necessarily evidence of improved financial well-being. The more important measure is whether consumers can use credit responsibly without compromising their capacity to save and meet basic household needs.