Consumer credit seen to grow in Philippines
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Consumer credit demand in the Philippines remains strong, supported by President Rodrigo Duterte’s push to sustain economic growth, a loan provider said Friday.
Home Credit Philippines expects to hit its target 500,000 clients this year and double its client base to one million in 2017, according to its chief executive, Annica Witschard.
“Obviously, there’s going to be some ups and downs in the global economy but the Philippines has a strong track record of growth and I don’t seen anything that’s going to stop that in the coming years,” she told ANC’s “Market Edge with Cathy Yang.”
Companies like Home Credit thrive with only three out of every 10 Filipinos having access to banks and only five percent with credit cards, she said.
Home Credit Philippines, the local unit of Home Credit Group, plans to expand to more retail stores in 17 provinces nationwide to offer non-cash, no-collateral in-store financing.
Questions & Answers
Q.What is Home Credit Philippines' client growth target for the coming year?
What is Home Credit Philippines' client growth target for the coming year?
Home Credit Philippines aims to double its client base to one million in 2017. This follows their expectation to reach 500,000 clients by the end of the current year, demonstrating significant anticipated growth in the consumer credit market.
Q.How does Home Credit Philippines plan to expand its services within the country?
How does Home Credit Philippines plan to expand its services within the country?
The company intends to expand its operations to more retail stores across 17 provinces nationwide. This expansion strategy focuses on offering non-cash, no-collateral in-store financing directly to consumers in various locations.
Q.Why is the Philippines seen as a strong market for consumer credit providers like Home Credit?
Why is the Philippines seen as a strong market for consumer credit providers like Home Credit?
The Philippines is considered a strong market because only three out of every ten Filipinos have access to traditional banks, and just five percent possess credit cards. This significant underserved population creates substantial demand for alternative credit solutions.
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