TransUnion says record-low delinquency rates driving consumer lending growth

TransUnion Philippines expects sustained lending growth given record-low delinquency rates and despite rising interest rates, with the credit scorer eyeing to capture small businesses in its roster by next year.
TransUnion president and chief executive officer Pia Arellano said in a media briefing on Wednesday, July 4, that consumer lending is expected to sustain rapid growth over the coming years.
“There’s been a very healthy more than 20% increase in total limits extended and total outstanding balances, and even delinquencies have been at an all-time low,” Ms. Arellano said in a media briefing on Wednesday. “Delinquency is managed but portfolios are growing, so that’s definitely a good sign as far as credit is concerned.”
Consumer loans reached P1.527 trillion as of March, up 16.8% from a year ago according to the Bangko Sentral ng Pilipinas. Of the amount, only four percent or P61.048 billion are considered as problem debts.
The credit bureau is also looking to capture data from non-bank institutions to enhance their credit scoring models such as utilities and mobile phone payments. They are likewise eyeing to roll out a credit scores specific to SMEs. — Melissa Luz T. Lopez