PRAGUE-BASED consumer finance company Home Credit is maintaining its positive outlook in the Philippines, as it aims to more than double its total receivables from P5.4 billion to P11 billion this year.
The projection comes shortly after Home Credit Philippines reached the 1-million customer mark in May, less than five months after reaching 600,000
“By all indications, considering our rapid growth in both customer base and geographic reach, the P11B receivebles target is doable,” said Home Credit Philippines CEO Annica Witschard. “The demand for affordable, alternative financing from Filipinos is undeniable, and as a fintech company, we are more than happy to address this demand.”
Ms. Witschard cited data from the Bangko Sentral ng Pilipinas, which reported that 86% of Filipino households are unbanked, and a World Bank survey indicating that more than 95% of Filipinos do not have a credit card.
“The Philippines is unique in that although the unbanked segment is very large, the economy is also seeing a massive boom, with demand for smartphones and other consumer goods at an all-time high,” explained HCPH Chief Financial Officer Zdenek Jankovsky. “And with our own unique business model that allows even first-time borrowers to avail of installment financing, the Philippine market is a perfect match for us.”
Since launching in Manila in 2013, Home Credit has seen rapid growth in its business of providing in-store financing of gadgets, appliances and other goods. Last year was seen as a particularly landmark year, as it grew its customer base more than two-fold from 280,000 to 600,000, increased its sales five-fold compared to 2015, and planted its flag in strategic areas including in Central and Northern Luzon.
The company’s steep climb continued in Q1 of 2017, as Home Credit expanded its reach in all major islands to become officially nationwide. In April alone, the company established its presence in La Union, Ilocos Sur and Ilocos Norte, adding to its current roster of more than 2,500 partner stores in 27 provinces, where they offer 0% interest promos and other popular products.
To support their fast geographic expansion, Home Credit is also gearing to increase its workforce from the current 5,600 to 7,000 this year, potentially doubling its workforce of 3,500 employees in 2016.
Aside from the popularity of its 0% interest promos and rapid expansion, Ms. Witschard also cited strategic tie-ups with partners, both in the retail and producer segments, as key drivers in their success.
“For us, it’s very much a win-win situation. We help our partners provide a good financing alternative for their customers who don’t have a credit card; at the same time, the huge popularity of products from companies such as Huawei, OPPO, Samsung, and Vivo help to drive demand for our own financing services.”
Aside from retailers and product manufacturers, Home Credit also has key partnerships in the finance sector, as it was able to establish credit facilities with group relationship banks such as Citi, ING, and HSBC. At the same time, Home Credit is also in the process of inviting local banks to participate in the loan syndication arranged by Citibank.
For more information, visit www.homecredit.ph.
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