What if the Philippines’ biggest barrier to growth isn’t lack of capital, but lack of trust in its credit system?
Despite rapid lending growth, millions of Filipinos and MSMEs remain excluded from affordable formal credit, facing higher borrowing costs and limited access. Activating the Philippine Credit Flywheel examines why: persistent gaps in data quality, thin credit files, fragmented identity systems, and low consumer awareness continue to undermine lender confidence.
The report outlines four strategic priorities – strengthening digital ID, improving credit data depth and quality, expanding credit awareness, and building graduation ladders – to unlock a self-reinforcing flywheel of inclusion, competition, and lower-cost credit.