Consumer finance company Home Credit strengthens its programs to promote financial inclusion and serve the unbanked and underserved Filipinos in line with the government’s strategy to widen financial inclusion to more Filipinos.
In July 2022, the Bangko Sentral ng Pilipinas (BSP) launched the National Strategy for Financial Inclusion (NSFI) 2022-2028, the country’s first financial inclusion blueprint that is expected to transform the country into a more inclusive society with a more empowered citizenry in the next six years.
BSP’s 2020 Financial Inclusion Initiative report revealed that in 2019, only 29% of adult Filipinos own bank accounts and only 19% had formal credit.
According to government figures, 31.2% of local government units (LGUs) still do not have a banking presence while 4.6% of LGUs are still considered underserved. Despite the availability of digital financial services, BSP data also revealed that while 69% of Filipino adults own mobile phones and 53% use the internet, only 12% of mobile phone owners and 9% of internet users use their devices and the internet for financial transactions.
Equitable post-pandemic recovery
Home Credit Philippines believes that the key to accelerating financial inclusion is making finance more accessible to more people, especially for the unbanked and underserved Filipinos.
“Home Credit Philippines remains committed to supporting equitable post-pandemic recovery in the Philippines through our consumer financial services and solutions,” said David Minol, CEO of Home Credit Philippines. “We believe that our financial inclusion programs and financial literacy initiatives build on the bigger vision of empowering more Filipinos.”
Among its key thrust for 2022 include broadening access to responsible finance, championing financial literacy and empowerment, and promoting innovation and digital inclusion.
In 2021, Home Credit Philippines signed an ESG-linked loan with Deutsche Bank to reinforce the company’s digitalization efforts with 60% of its loans availed by customers via digital channels to enable more equitable loan rates and terms to customers regardless of their economic or social background.
In 2022, Home Credit also inked a pioneering loan facility with Citi aimed at providing access to digital financial services to women with 120 million out of the 420 million of this loan facility dedicated to women for the purchase of basic digital devices such as smartphones and tablets.
Home Credit customers
Home Credit has provided more than 18 million loans to its 8 million customers. More than 70% of these loan applications were processed via Home Credit’s digital channels.
As of June 2022, Home Credit has served almost half a million new customers, over half were women and over a quarter of them were in the younger bracket.
Home Credit has also launched its flagship financial literacy radio block time segment in partnership with Praxis and the Manila Broadcasting Company in June which airs 2-minute financial tips across all DZRH stations nationwide. It’s set to launch its “Wais sa Home” financial literacy microsite featuring financial literacy quizzes and other resources this month and its “Wais sa Home” national roadshow aimed at expanding its financial literacy programs for youth across the country.
Categories: Business Features