Home Credit Philippines (HCPH) reported a threefold year-on-year growth in last year’s receivables, capping a landmark year that saw HCPH double its customer base from one to two million, and expand its operations nationwide.
The Prague-based finance technology (FinTech) company entered the Philippine market in 2013. From modest sales of P29 million on their first year, Home Credit’s revenues had grown to P4 billion in 2016, and grew further to P14 billion in 2017. The company now has a 2.5 million Filipino customer base, of which more than 1.5 million have active loans, with receivables of P14 billion as of the end of 2017.
Barely into the first half of this year, HCPH has already signed more than 800,000 new loans. Its highest performing month so far this 2018 is April where it yielded more than 190,000 new active loans.
The company tributes their success to grassroots activities where they reach out to communities by equipping them with financial literacy that would enable them to gain that entrepreneurial spirit, going as far as rural farming communities to expand their advocacy. Their program “Juan, Two, Three” won them their 2018 Silver Stevie award for Asia.
HCPH chief executive Annica Witschard shared that the company’s performance in 2017 is their new benchmark for what is already considered a steep rate of growth in the local consumer finance industry.
“From day one, our mindset was to grow big and grow fast, while changing the landscape with our financially inclusive products,” Ms. Witschard said, “Our remarkable growth and expansion in 2017 tells us that we are on track in achieving our goals. And our results in 2017 tell us that our business strategy is an effective one,” she added.
HCPH chief finance officer Zdenek Jankovsky shared that the company’s robust sales, effective risk and cost management, and funding have played key roles in HCPH’s business performance.
“We’ve been successful in leveraging our strengths, especially in risk mitigation, sales, and funding, while applying best practices from Home Credit Group’s more than twenty years of experience globally,” Jankovsky said. “In the process, we were able to get the attention of industry stakeholders as well as the trust and support of our banking partners.”
Last year, HCPH obtained a syndicated loan worth P2.25B which was used to support its expansion. The loan was arranged by Citi and was participated by some of the country’s largest banks, Union Bank of the Philippines, East West Bank, RCBC, Citi, and CTBC. Recently, the company raised additional funds to support its expansion in the Philippines from local banks, with banks like Veterans Bank and Land Bank as some of its newest lenders.
More information on Home Credit Philippines is available at www.homecredit.ph.
By Inspire PH Team