HOME CREDIT Philippines saw an increase in store installment funding as more consumers purchased items due to home office arrangements and lifestyle changes due to the coronavirus pandemic.
The company saw its lending increase to pesos 10.6 billion in the first half of the year, David Minol, chief executive officer of Home Credit, said in a statement.
Almost a million customers used their facility to source products from their partner stores during the reporting period, he added.
Home Credit is present in over 9,000 physical stores, while its app has had over six million downloads.
“It’s another encouraging sign that people are gradually recovering from a very challenging year for all of us,” said Minol.
The top five items purchased by consumers who used home equity finance for financing were smartphones, televisions, refrigerators, laptops, and exercise equipment.
Home Credit also saw higher demand for finance to purchase air conditioning. Sales rose to P 296 million in the period from April to May compared to P 132 million in the first quarter. It has been attributed to consumers who took advantage of their promotional offers.
“It’s an interesting bestseller list as it reflects the priorities and lifestyles of Filipinos in the new normal. They value things that will enable their families to live, work and play better, ”said Minol.
He noted that even though shopping malls closed when a two-week lockdown was imposed in Metro Manila and surrounding provinces in March, Home Credit continued to see demand for funding through its mobile app.
With the restraint being phased out, Minol said consumer traffic in shopping malls is expected to rebound, which could boost credit demand.
Filipinos’ increasing ease of using mobile transactions will also help them attract more customers, he said.
“We know Filipinos have a strong mall culture, and it still shows in this new normal. But the past few months have also shown how digitally savvy Filipinos have become, especially when it comes to e-commerce and online shopping, ”said Minol.
The finance company has served over seven million customers since its launch in the Philippines in 2013. – LWTN