Digital banks are nearing traditional banks in terms of perceived safety among Filipinos, as consumers increasingly turn to digital financial platforms for credit and other financial needs.

Filipinos are also showing greater willingness to borrow from digital banks, particularly for emergency and personal expenses, signaling growing confidence in digital lenders as an alternative to traditional banks.

Peter Faulhaber, president and chief executive officer of TransUnion Philippines, said the growing perception of digital banks as safe financial institutions was “probably the standout from this year’s survey.”

Perceived safety of traditional banks stood at 88 percent, compared with 84 percent for digital banks, according to the 2026 Credit Perception Index (CPI) by TransUnion Philippines. Results were gathered from 1,000 consumers.

“Digital finance has become increasingly mainstream,” the report said, noting that e-wallets have become a common entry point into the financial system while digital banks have posted notable gains in consumer knowledge and favorability.

Nearly half of respondents said a fintech product was their first financial product, more than twice the share who cited a traditional bank account at 20 percent. E-wallets accounted for the largest share of fintech usage, followed by digital banks and digital payment apps.

Further, the report found that Filipinos are increasingly shifting their borrowing preferences toward formal financial institutions. Intent to borrow from family and friends fell to its lowest level since 2023, while future borrowing intent rose most for digital banks, followed by traditional banks and credit cards.

Overall, 93 percent of Filipinos use at least one fintech product, with e-wallets remaining the most widely used, followed by digital banks and digital payment apps.

Fintech products also ranked among the most credible, reliable and convenient digital financial services available to consumers.

Rising consumer awareness has helped fuel the growth of digital banking. Knowledge of digital banks climbed to 80 percent, while favorability also rose to comparable levels, suggesting that consumers are moving beyond awareness and becoming more comfortable using digital banks for more significant financial needs.

When Filipinos borrow through these channels, emergency expenses remain the primary reason, followed by personal and family-related needs.

Still, the growing trust in digital lenders comes with challenges. High interest rates, along with concerns over scams and fraud, remain among the biggest deterrents for consumers seeking credit.

To sustain the momentum in digital banking, the report called for greater transparency on fees, fairer interest rates and stronger security and fraud protection.