MANILA — The trend of Filipinos turning to formal lending institutions for credit is poised to bolster personal consumption, a major component of the country's economic expansion.
According to Philippines News Agency, Sheila Paul, in a discussion with the Philippine News Agency, outlined the growing acceptance of credit and financing among Filipino consumers as a positive development for the economy.
Since its inception in 2013, HCPH has extended credit to over 10 million clients, disbursing a total of PHP295.7 billion over the past decade. "The Philippine economy is expected to grow this year, with personal consumption anticipated to be a primary growth driver," Paul said. She attributed this potential to an improved consumer outlook on using credit and financing for purchases.
Home Credit, recognized as one of the leading consumer finance companies in the Philippines, plays a significant role in facilitating economic growth by enhancing consumer spending and supporting local businesses. The company has aided Filipinos in acquiring a range of products, including gadgets, furniture, and appliances, thereby contributing to the overall economic activity.
As of December 2023, HCPH's point of sale (POS) loans numbered 17 million, with mobile phone purchases leading the way at 12 million units financed. Additionally, the company has financed over 1 million television units and 867,000 computer units in the past decade. Paul highlighted this as evidence of Filipinos' keenness to keep up with the latest technological and lifestyle trends.
Reflecting on the company's journey from processing just seven loans in its initial year to serving more than 10 million customers today, Paul emphasized HCPH's commitment to offering accessible consumer finance products. These efforts have enabled countless Filipinos to achieve their personal and family aspirations.
In the face of market and economic fluctuations, HCPH remains vigilant, ensuring its services are adaptable and aligned with broader economic patterns. This strategic approach underscores the company's contribution to the Philippines' economic resilience and growth, driven by increased consumer confidence in credit and financing options.