Home Credit to of­fer more loan prod­ucts

China Daily (USA) - - BUSINESS - By ZHONGNANin Shanghai zhong­nan@chi­nadaily.com.cn

Home Credit Group, an in­ter­na­tional con­sumer fi­nance provider based in the Czech Repub­lic, will work closely with Chi­nese part­ners to add the num­ber of loan prod­ucts in In­done­sia and In­dia over the next five years to fur­ther di­ver­sify their earn­ing abil­ity, said its top ex­ec­u­tive.

Many of these op­por­tu­ni­ties come from the fast devel­op­ment of the Belt and Road Ini­tia­tive with grow­ing trade and in­vest­ment vol­ume, as well as these coun­tries’ in­creas­ing de­mand for con­sump­tion up­grade, for­eign prod­ucts, pub­lic ser­vices and flex­i­ble fi­nanc­ing so­lu­tions.

Home Credit has formed a strong part­ner­ship with Dong­guan-based Chi­nese smart­phone man­u­fac­turer Oppo Elec­tron­ics Corp to build a stronger pres­ence in mem­ber coun­tries of the As­so­ci­a­tion of South­east Asian Na­tions, es­pe­cially in Viet­nam and the Philip­pines, to cre­ate new mar­ket growth points from the devel­op­ment of the Belt and Road Ini­tia­tive.

On­drej Frydrych, chief ex­ec­u­tive of­fi­cer of Home Credit Group in China, said the com­pany of­fers these coun­tries con­sumer fi­nance so­lu­tions which cover the en­tire process of loans, con­sump­tion, pay­ment and credit sys­tem con­struc­tion.

Un­like lo­cal deal­er­ships or banks, Home Credit is able to of­fer cus­tomers in the re­gion a smart­phone backed by a zero per­cent in­ter­est loan.

Ac­cord­ing to statis­tics from oppo’s over­seas mo­bile phone sales de­part­ment, about 40 per­cent of oppo mo­bile phones sold in Viet­nam in 2015 were through con­sumer credit ser­vices pro­vided by Home Credit.

Oppo’s sales in Philip­pines also jumped to the se­cond place in terms of mar­ket share from Jan­uary to Au­gust 2016, with over 30 per­cent of sales of cer­tain mod­els com­ing from the con­sumer credit ser­vices pro­vided byHome Credit.

“The col­lab­o­ra­tion is show­ing en­cour­ag­ing re­sults, and these two mod­ern trad­ing routes have brought even more op­por­tu­ni­ties in those mar­kets, and of­fered a plat­form where we could bet­ter in­te­grate mu­tual re­sources,” said Frydrych.

Home Credit achieved a ro­bustly fast pace of growth in new loan vol­umes in Asian coun­tries in the first half of 2016 — 109 per­cent in Viet­nam, 164 per­cent in In­dia, 321 per­cent in In­done­sia and 466 per­cent in the Philip­pines.

Based on its ex­pe­ri­ence in op­er­at­ing in South­east Asia, Home Credit found that many lo­cal res­i­dents are still in great need of ba­sic ne­ces­si­ties.

“The mo­bile phone will re­main a sta­ble growth point in South­east Asian mar­kets, while prod­ucts that meet daily life needs such as house­hold elec­tri­cal ap­pli­ances, elec­tric mo­tor­cy­cle sand other durable con­sumer goods with high qual­ity and rel­a­tively lower prices may have great mar­ket po­ten­tial in the re­gion,” said Frydrych.

The East Euro­pean com­pany had over 15 mil­lion ac­tive cus­tomers by the end of June this year, with over two-thirds of them in Asia: 7.3 mil­lion in China, 1.3 mil­lion in Viet­nam and 1 mil­lion in In­dia.

“The col­lab­o­ra­tion be­tween Home Credit and Chi­nese com­pa­nies well sup­ports the pop­u­lar­iza­tion of con­sumer fi­nance, and fa­cil­i­tates to pro­mote ‘ Made in China 2025’ in global mar­kets, en­abling China to serve more for­eign con­sumers while driv­ing do­mes­tic in­dus­trial re­struc­tur­ing and up­grad­ing,” said Zhao Xian, a pro­fes­sor of in­ter­na­tional trade at the Cen­tral Univer­sity of Fi­nance and Eco­nom­ics in Bei­jing.

On­drej Frydrych, chief ex­ec­u­tive of­fi­cer of Home Credit Group in China

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.