In the Philippines, millions of people still don’t have a bank account. For years, being “unbanked” meant being shut out of credit, loans, and other formal financial services. But things are starting to change.
The 2025 TransUnion Credit Perception Index (CPI) shows that even without access to traditional banking, the unbanked population is improving in both knowledge and trust when it comes to credit. Their CPI score rose to 67 in 2025, up from 65 in 2024. That may not sound like much, but it’s a meaningful step toward financial inclusion.
The Numbers Behind the Progress
The data tells an encouraging story:
Knowledge of mobile loans jumped +16 percentage points (pp).
Payday loan familiarity climbed +15pp.
Awareness of automotive loans improved by +13pp, while micro loans and personal loans each gained +12pp and +10pp.
In other words, the unbanked are catching up fast. While their overall knowledge (56%) still lags behind the general population (69%), the gap is narrowing
Why This Matters
Being unbanked has always been more than just a label — it means limited access to opportunity. Without a bank account or credit history, it’s harder to:
Qualify for loans.
Start or expand a business.
Pay for education or healthcare with flexible financing.
Build a financial safety net for emergencies.
For many Filipinos, staying unbanked has kept them locked out of the formal economy. But the CPI results show a growing appetite to learn and engage with credit products — a shift that could transform not just households, but entire communities.
What’s Driving the Change
So, what’s behind this newfound openness?
FinTech and mobile-first products. With mobile loans and eWallets leading the charge, Filipinos without bank accounts can now access financial services with just a smartphone.
Greater awareness. Social media is the top source of financial knowledge for unbanked Filipinos. While not always accurate, it exposes them to credit concepts they previously knew little about.
Necessity. Rising costs of living and emergencies push people to explore options beyond cash savings and family loans. Credit becomes less of a choice and more of a survival tool.
Government and private initiatives. Programs aimed at promoting financial literacy and digital inclusion are helping more Filipinos see credit as accessible — not just for the wealthy.
The Opportunities — and Risks
The progress is exciting, but it comes with caution. More unbanked Filipinos may now understand credit, but that doesn’t mean they’re fully equipped to use it responsibly.
Opportunity: With the right support, they can transition into the formal financial system, build credit histories, and access larger loans for education, healthcare, or business.
Risk: Without strong financial literacy, they could fall prey to predatory lenders or misuse digital credit products, ending up in worse financial shape.
That’s why financial education — not just product access — is critical.
What Needs to Happen Next
For the unbanked to truly benefit from this progress, banks, FinTechs, and policymakers need to:
Simplify credit products. Use plain language and transparent pricing to make borrowing less intimidating.
Boost financial literacy. Partner with schools, employers, and community groups to teach people how to manage credit responsibly.
Expand digital access. Ensure mobile loans and digital banking apps reach rural areas where the unbanked population is highest.
Protect against fraud. Build trust by guaranteeing secure platforms and quick resolution of scam-related issues.
The Bottom Line
The unbanked Filipinos are no longer standing still. With their CPI score up to 67, and with double-digit jumps in knowledge of products like mobile and payday loans, they’re beginning to close the gap with the banked population.
For a country pushing toward financial inclusion, this is big news. It proves that even those left behind by the traditional banking system are ready to learn — and eager to join the financial mainstream.
The challenge now is making sure that when they do, they’re welcomed with safe, fair, and empowering credit options. Because the future of financial inclusion in the Philippines isn’t just about numbers — it’s about giving everyone, banked or unbanked, a real chance to build a better financial life.
