A total of 10.5 million mobile phones were financed through Home Credit Philippines Inc. (HCPH) in less than a decade of operation and the company said more is in store for their clients as they continue to grow in the Philippines.
This meant that HCPH became the means by which Filipinos purchased over 3,000 mobile devices every day or over 100 phones per hour in the past 9.5 years.
In 2022, Home Credit ended the year strong with a customer base of 9.3 million. The company is confident that it can reach 10 million customers even before reaching its 10th year.
“Our goal of a financially empowered Philippines comes true every year, one customer at a time. In our 10 years of service in the country, we aim to empower 10 million customers by the end of 2023 and continue to serve more Filipinos in the years to come,” Home Credit Philippines CEO David Minol said.
“More than delivering innovative and accessible financial services, we celebrate the relationships we have built with our stakeholders and customers over the past decade, and this we choose to continue above and beyond,” Minol added.
Re-offering credit cards
APART from products, the HCPH also extended P1.8 million cash loans to existing clients who have had a good record of availing their product loans. The cash loans were launched in May 2015.
“We are opening our doors to finance for a lot of new to credit customers. We obviously start with the product loan first and then as people show a great credit history, we are able to offer them the cash loans as well,” Puneet Suneja, Chief Sales Officer, told reporters last week.
HCPH Executive Director and Treasurer Zdenek Jankovsky said the recent decision of the Monetary Board to adjust the ceilings on credit card transactions has encouraged HCPH to re-offer its credit cards.
In January, the MB increased the maximum interest rate or finance charge imposed on a cardholder’s unpaid outstanding credit card balance by 100 basis points (bps) to 3 percent per month from 2 percent.
Jankovsky said HCPH is the only known institution that has a credit card license from the Bangko Sentral ng Pilipinas (BSP). He said that during the pandemic, they slowed down the distribution of new credit cards.
BNPL services
HOWEVER, given recent developments, Jankovsky said HCPH is now looking into providing credit cards again as part of its new offerings for their clients.
“We still have some active portfolios for the credit card users and we have other products that customers can use [such as] QR codes [among others],” Jankovsky told reporters last week.
As a leading consumer finance provider, pioneering buy now, pay later (BNPL) services in the country, Home Credit has grown its local roots in the past decade and developed a much deeper understanding of the local market.
The company has seen the need to expand its lifestyle offerings and finance solutions to better support the ever-evolving needs and demands of Filipinos in this new generation.
Over the years, Home Credit has expanded to a robust 15,000 partner stores across 75 provinces in the country and has aggressively grown its online presence through the My Home Credit App.
The company has also forged partnerships with the country’s biggest brands and retailers, building a wide selection of 300+ lifestyle commodities ranging from gadgets and smartphones, appliances and furniture, to bicycles and motorcycle accessories, sports equipment, and many more.
Cash loan
ASIDE from product loans, the company also offers existing customers with good payment histories the opportunity to avail themselves of cash loan.
To date, 90 percent of the cash loan contracts were signed digitally and 20 percent of the applications were processed through the My Home Credit App.
Home Credit boasts of having the fastest cash loan approval and disbursement in 1 minute—the best in the market. Customers can enjoy the flexibility of the Cash Loan offers ranging from P3,000 to P150,000 and repayment terms from six to 48 months.
Last year, Home Credit’s flagship financial literacy program Wais sa Home reached more than 20 million Filipinos across the country and has driven onsite financial literacy programs in various provinces, particularly in the communities of Pampanga, Iloilo, Guimaras, Capiz, Antique, and Aklan.
The company also commits to a greener earth with 30 million sheets of paper saved in overall transactions, an equivalent of 2,000 trees conserved due to its digitalization initiative. Aside from that, Home Credit also promotes equity by providing more substantial purchasing power for women who comprise 52 percent of its customer base.
Image credits: Maksym Yemelyanov | Dreamstime.com