Home Credit sees 3-fold increase in receivables

Home Credit Consumer Finance Philippines Inc., provider of alternative installment financing for gadget and home appliances, said yesterday it is targeting to reach P11 billion in total receivables by end-2017, up by almost three-fold from the P3.87 billion recorded in 2016.

Annica Witschard, Home Credit Philippines chief executive officer, said the company’s expanding customer base – which has breached the one-million mark as of May – and the nationwide reach of its services would make this target growth in assets achievable.

“By all indications, considering our rapid growth in both customer base and geographic reach, the P11 billion receivables target is doable,” Witschard said.

The company’s chief financial officer Zdeněk Jankovský said the Philippines’ rapid economic growth, rising smartphone demand and young population would drive the growth of the firm.

“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,” Jankovský said.

“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,” he said.

The company officials cited data from the Bangko Sentral ng Pilipinas (BSP) which showed that 86 percent of Filipino households are unbanked and a World Bank Survey that indicated more than 95 percent of Filipinos do not have a credit card.

“The demand for affordable, alternative financing from Filipinos is undeniable, and as a fintech company, we are more than happy to address this demand,” Witschard said.

Home Credit provides installment financing services for purchases of customers, often first time borrowers, seeking to buy appliances and mobile devices.

The company’s services is currently available in 2,500 partner stores in Metro Manila and 27 provinces, where it offers zero-percent interest promos.

Its partner stores include SM Appliance Store, Ansons, Abenson, Automatic Centre, Robinsons Appliances, and even manufacturers, such as Oppo, My Phone and Cherry Mobile.