Consumer loans seen driving banks’ next wave of growth, BSP says

Thrift banks, with ₱1.4 trillion in assets, are well-positioned to serve more borrowers as demand for consumer lending continues to rise.

Consumer loans could become banks’ biggest growth driver in the coming years, opening the door to easier access to financing for Filipinos buying a home or car, expanding a small business, or covering major expenses.

The Bangko Sentral ng Pilipinas (BSP) said banks are increasingly betting on consumer lending after the segment continued posting double-digit growth, making it one of the industry’s fastest-growing businesses.

BSP Deputy Governor Lyn Javier said banks have consistently identified consumer lending as a key area for expansion during discussions with the central bank. But as more services move online, she stressed that stronger cybersecurity must keep pace to better protect customers, especially those most vulnerable to scams.

Javier also encouraged banks to combine traditional banking, digital platforms, and artificial intelligence to improve customer experience without compromising trust and good governance.

The BSP said thrift banks are well-positioned to support rising demand for credit, with the sector holding about ₱1.4 trillion in assets. Chamber of Thrift Banks Chairman Manuel Santiago added that financial inclusion continues to fuel borrowing, helping drive the industry’s growth.

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