Home Credit, the largest consumer finance company in the Philippines, has just received a timely boost in terms of funding for its social finance programs after Citi, one of the largest foreign banks in the country, agreed to increase its credit facility from P420 million to P820 million.
The added funding was approved and drawn last May 2022.
“This upsizing of the social finance facility by Citi underlines how Home Credit Philippines has lived up to its mission to deliver trusted financial services for Filipinos. We continue to innovate our products, our processes, and our services to push for financial inclusion in the Philippines,” Zdenek Jankovsky, Director and Treasurer of Home Credit Philippines, said in a statement.
For his part, Aftab Ahmed, CEO of Citi Philippines, said, “Citi has long been committed to accelerating financial inclusion in the Philippines, from our support of microentrepreneurs and now through this social finance facility, which aims to make that much-needed financial services more accessible to Filipinos, specifically women, through the use of their mobile devices. We are confident that the expansion of this program will further enable progress for those who need it the most.”
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in more than 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.
This transaction contributes to Citi’s $1 trillion commitment to sustainable finance by 2030, specifically in supporting the social finance criteria of economic inclusion, which aims to improve access to credit and financial services in vulnerable or underserved communities as well as financing for the Micro, Small, and Medium-sized Enterprises (MSME) in the Philippines.
Promoting greater financial inclusion
The social finance facility is expected to promote greater financial inclusion for Filipinos in support of the mobile segment and is expected to not just increase connectivity but also improve their lives by enabling greater access to essential services like online banking, financial literacy, and online education as well as entrepreneurial activities.
“Home Credit Philippines remains committed to providing credit access to all Filipinos through our consumer-finance services and solutions. We are their ally, and we will continue to come up with ways to serve them through responsible lending as they build their home, lives, and dreams” said David Minol, CEO of Home Credit Philippines.
Home Credit has already gained 466,000 customers, and is still generating more new subscribers from different walks of life, giving them access to affordable, convenient, and quality financial services.
From April to July this year, Home Credit Philippines has provided consumer financing worth over P5 billion to almost half a million Filipinos in support of their mobile device purchases. Of this number, 50% are female customers.
By the end of July 2022, the company has also served 8.7 million customers all over the country through a selection of affordable and accessible financing products.
Among Home Credit’s key thrusts in the Philippines this year includes broadening access to responsible finance, championing financial literacy and empowerment, as well as promoting innovation and digital inclusion.
Home Credit has also tied up with DZRH to promote financial literacy in bite-sized content to empower customers to make them wiser and more resilient, strengthening their campaign as a trusted ally of Filipinos “Para sa Life.”
Home Credit is now also championing environment, social and governance (ESG) programs as part of its financial literacy advocacy.
As of today, Home Credit has already empowered women customers (50%), youth segment (27%), and introduced digitalization and innovation (63%) while continuously creating social impact and supporting causes that add value to the lives of Filipinos.