HOME CREDIT Philippines saw an increase in in-store installment financing as more consumers purchased items due to work-from-home agreements and lifestyle changes resulting from the coronavirus pandemic.
The company saw a year-on-year increase in lending in the first half to 10.6 billion pesos, Home Credit chief executive David Minol said in a statement.
Nearly one million customers tapped into their facility during the period to enjoy products from their partner stores, he added.
Home Credit is present in more than 9,000 physical stores while its application has more than six million downloads.
“It’s 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 used mortgages for financing were smartphones, televisions, refrigerators, laptops and sports equipment.
Home Credit also saw increased demand for financing to buy air conditioners, with sales reaching 296 million pesos from April to May compared to 132 million pesos in the first quarter. It was awarded to consumers taking advantage of their promotional offers.
“This is an interesting best-selling list because it reflects the priorities and lifestyles of Filipinos in the new normal. They place a high value on things that allow their family to live, work and play better” , said Mr. Minol.
He noted that although malls were 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 restriction measures being gradually lifted, Mr Minol said consumer traffic is expected to pick up in malls, which could boost demand for loans.
Filipinos’ increasing ease of using mobile transactions will also help them win more customers, he said.
“We know Filipinos have a strong mall culture, and it still shows in this new normal. But what the past few months have also shown is 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 its launch in the Philippines in 2013. — LWTN