MANILA: More than two in five Filipinos said their income grew in the second quarter of the year, results of TransUnion’s Q2 Consumer Pulse Study showed.
TransUnion’s Consumer Pulse Study surveyed 944 adult Filipino consumers from May 1 to 10, 2024. It examined shifting consumer attitudes and behaviors based on the dynamics of income, debt, and identity theft.
Survey results released on Wednesday showed that 42 percent of respondents reported an increase in income, slightly higher than the 41 percent recorded in the second quarter of 2023.
“This optimism persists into the near future with most Filipinos (78%) also expecting an income increase in the next 12 months,” TransUnion said.
The study, however, noted that despite the positive income outlook, respondents’ sentiments about household expenses showed signs of financial strain.
TransUnion said 44 percent of respondents feared they would be unable to pay their current bills and loans in full, which represented a three percentage point increase from the
same quarter last year.
The concern over financial stability was reflected in a four percentage point drop in respondents feeling optimistic about their household finances in the next 12 months.
TransUnion said pessimism (8 percent) and neutrality (12 percent) edged up but the biggest concerns affecting household finances were inflation, job security, and interest rates.
The study said these concerns influenced household spending, adding that only 22 percent disclosed increased discretionary spending such as dining out, travel, and entertainment.
The study, however, showed that looking forward, Filipinos have a more positive spending outlook.
While 52 percent expected an increase in bills and loans, 39 percent foresaw increased retail shopping – reflecting notable jumps of seven and six percentage points respectively from the same quarter in 2023.
Nearly half of Filipinos also expected additional medical spending and one-third expected more large purchases over the next three months.
‘Although more Fil
ipinos enjoyed increased household incomes in Q2 2024 and expect this trend to persist in the next 12 months, the adjustments they made to household budgets suggest a cautious approach to financial management,’ said TransUnion Principal of Research and Consulting for Asia Pacific Weihan Sun.
‘This seemingly contradicting sentiment suggests a vigilant yet hopeful outlook as Filipinos continue to acclimate to economic challenges, navigating between necessary expenditures and financial prudence,’ Sun added.
Access to credit
TransUnion said that while Filipinos perceive credit to be an important factor in achieving financial goals, only
38 percent felt like they had sufficient access to it.
Gen Z consumers had the lowest confidence in obtaining approval for the credit or lending products they need.
In terms of the type of credit sought, personal loans were the most popular among all generations.
Fraud schemes
TransUnion said that while 30 percent of Filipinos were unaware of being targeted by any fraud sc
hemes, attempts remained a significant concern among Filipinos, with 60 percent indicating that they had been targeted by a fraud scheme but did not fall victim.
Another 10 percent admitted to being targeted and becoming victims, slightly up from 9 percent the previous year.
Phishing, which includes fraudulent emails, websites, social posts, QR codes meant to steal data, remains the most common with 51 percent of respondents reporting being targeted.
Smishing or fraudulent text messages meant to trick people into revealing data saw an increase with 44 percent of respondents noting it in the second quarter of 2024, up from 40 percent the previous year.
‘Although the number of respondents unaware of fraud and those victimized remains relatively stable, smishing attempts have increased, indicating that fraudsters are diversifying tactics to target unsuspecting consumers. With a slight increase in successful attempts to defraud consumers, robust consumer education efforts on fraud prevention must continue to
further build consumer awareness,” said Sun.
“Consumers are also encouraged to take more protective measures in closely monitoring their credit and finances to secure against the growing threats not only in the Philippines but across the world,’ added Sun.
Source: Philippines News agency
