HOME CREDIT The Philippines saw an increase in in-store installment financing as more consumers purchased items due to work-from-home arrangements and lifestyle changes resulting from the coronavirus pandemic.
The company saw its loans increase year over year in the first half of the year to 10.6 billion pesos, Home Credit chief executive David Minol said in a statement.
Almost a million customers used their facilities during the period to avail products in their partner stores, he added.
Home Credit is present in more than 9,000 physical stores while its app has more than six million downloads.
“This is another encouraging sign that people are gradually recovering from what has been a very difficult year for all of us,” Minol said.
The top five products purchased by consumers who turned to Home Credit for financing were smartphones, televisions, refrigerators, laptops and sports equipment.
Mortgage lending has also seen an increase in demand for financing for the purchase of air conditioners, with sales reaching 296 million pesos from April to May from 132 million pesos in the first quarter. It was awarded to consumers taking advantage of their promotional offers.
“It’s an interesting bestseller list because it reflects the priorities and lifestyles of Filipinos in the new normal. They place a high value on the things that make it possible for their families to live, work and play better, ”said Mr. Minol.
He noted that although shopping malls were closed when a two-week lockdown was imposed in Metro Manila and surrounding provinces in March, Home Credit continued to see a request for funding through its mobile app.
With the gradual lifting of the restriction measures, Minol said consumer traffic is expected to pick up in shopping malls, which could boost demand for loans.
The growing ease of Filipinos in using mobile transactions will also help them gain more customers, he said.
“We know Filipinos have a strong mall culture, and it shows again in this new normal. But what the past few months have also shown is just how digitally savvy Filipinos have become, especially when it comes to e-commerce and online shopping, ”Minol said.
The finance company has served more than seven million customers since launching in the Philippines in 2013. – LWTN