Despite the modernization of the economy and society, conversations on finances and credit remain uncommon. TransUnion hopes to change that by increasing awareness and widening financial inclusion where it matters most.
Just mentioning the words finance, credit or loans can unnerve many Filipinos, especially those raised to be extra cautious about money management. But in a country where around 51 million adults still lack access to formal credit or banking accounts, these are topics we need to bring into the mainstream of public dialogue.
Easing financial tension
Ten years ago, TransUnion didn’t exist in the Philippines, so an informed view of a customer’s genuine identity and creditworthiness was problematic for lenders. Today, TransUnion helps promote financial inclusion by enabling trust between businesses looking to increase customer acquisitions and consumers demanding smoother, safer transactions.
Over the past two years, the accelerated digital landscape has made some consumers nonchalant — even regarding high-value financial activities — but their security expectations of businesses they engage with remain elevated. The rapid increase in pace, scale and value of digital commerce has also led to a dramatic rise in hacker attacks by fraudsters and organized cybercriminals. These pressures weigh heavily on responsible lenders striving to acquire and satisfy customers while securing against sophisticated fraud techniques.
Enabling financial inclusion
Historically, achieving financial inclusion and credit literacy has been challenging for the Philippines. Thankfully, TransUnion has solutions that can help.
Our Digital Onboarding solution uses advanced identity verification capabilities to enhance the speed and convenience of online loan applications while effectively monitoring and managing fraud risk. This friction-right process also provides credit behavior and affordability insights to help lenders make sound decisions based on specific sales strategies.
By leveraging the combination of traditional credit data, alternative data and behavioral insights (from mobile and other public information), TransUnion helps today’s lenders safely extend credit facilities to new-to-credit and thin-file consumers — accessing a wider proportion of the population than previously possible.
In addition, TransUnion has partnerships with the Rural Bankers’ Association of the Philippines, the 1 Cooperative Insurance System of the Philippines (1CISP) and TraXion Tech to extend data-driven lending solutions to underserved and under-banked areas.
Empowering nation building
By educating and better equipping consumers to monitor and manage their credit scores, TransUnion helps Filipinos take charge of their financial futures so they can achieve great things in the modern economy.
Credit literacy and financial inclusion aren’t merely about understanding credit; they’re about wielding the power to access opportunities made possible by responsible lending. And on a greater scale, building a nation of well-informed citizens confidently making sound financial decisions.
Our role as TransUnion is to provide education, information and actionable insights consumers and lenders can use to create a more inclusive financial ecosystem. We believe giving lenders and consumers mutual access, security and confidence to transact digitally will help support industry growth, the economy and a better future for our nation.
Learn more about how TransUnion can help your business confidently contribute to financial inclusion in the Philippines.