8 in 10 Filipinos say formal credit options more accessible in 2023: Digido

At least 1 in 2 respondents had an outstanding loan from a formal lender.

About 8 in 10 Filipinos (80%) now believe that formal credit options have become more accessible in 2023, according to a survey by consumer finance company Digido.

Of these, 38% say that their access to formal credit improved in 2023 compared to 2022. Meanwhile, 42% say that there were no changes to their degree of accessibility and claim.

At the time of the survey, at least 57% of respondents have at least one outstanding loan from a formal lender. Of this, 31% of those with loans are from non-bank financial institutions, 25% are from traditional bank branches, 14% are from digital banks, 13% are from offline NBFIs, and 9% are from apps and websites of traditional banks.

Meanwhile, 48% of those with loans borrow from friends or family members.

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Respondents cite the easy application process (60%), convenient repayment methods (50%) and high probability of approval (47%) as the key factors that have influenced their decision in applying for a formal credit source in 2023, Digido found.

Other positive factors include convenient repayment schedule (43%), application through mobile app (42%) and attractive interest rate (30%), the report added.

Regarding payment habits, over 6 in 10 (64%) self-reported that they pay their loans on time.