Data gaps, delinquency constrain lending in PH

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MANILA, Philippines — Filipinos are increasingly turning to credit, but limited access to financial services, insufficient credit data, and high delinquency rates are likewise persisting, according to CIBI Information Inc.

Touted as the country’s first and only local credit bureau, CIBI said these factors underscore the urgent need for trust, transparency, and collaboration across the ecosystem.

CIBI recently organized and hosted an industry summit, which concluded that the future of Philippine credit lies in trusted data, cross-sector collaboration and innovative solutions that can expand financial inclusion and fuel sustainable growth.

At the forum, Metropolitan Bank & Trust Co. chief economist Nicholas Mapa said consumer demand for financing was surging.

Meanwhile, CIBI chief analytics officer Harley Chan said “pay later” or “buy now pay later” payment modes were growing faster than the traditional means—mortgages, auto financing and credit cards.

Chan said this trend was being driven by fintech digitization, stronger government initiatives, particularly that of the Bangko Sentral ng Pilipinas, as well as improved compliance in data submissions to the Credit Information Corp. (CIC).

According to CIC president and CEO Ben Baltazar, Filipinos had accessed over 10 million credit reports as of mid-2025. Baltazar said demand is expected to grow with lending activity.

The unbanked

And yet, 49 percent of Filipinos remain without access to banking services, according to See Wai Hun, who is CEO of JurisTech. It is a provider of enterprise lending solutions.

She added that only 1 percent of Filipinos’ loan applications are accepted due to insufficient credit data.

The CEO said that high delinquency rates and fraud further weaken confidence. These alter how institutions assess risk and limit consumers’ access to financing.

She said that misinformation, fragmented records and inconsistent reporting undermine credibility. Without reliable and transparent information, lenders grow cautious, borrowers are underserved and decision-making slows across the value chain, she noted.

Considering that the “trust gap” remained the biggest barrier to inclusive access to financing, CIBI president and CEO Pia Arellano said they have launched initiatives like the Fraud Bureau and CIBI Advanced Tier platform. These are designed to enhance transparency, reinforce compliance and strengthen trust in the credit system.

“As the world becomes more digital and more connected, the need for reliable, responsible, real-time data becomes greater than ever,” Arellano said. —Ronnel W. Domingo