Among the company’s efforts to empower Filipinos include lending facility to new borrowers, especially women, to help them own gadgets
Home Credit, the leading consumer finance company in the Philippines, is strengthening its programs to promote financial inclusion and serve unbanked and underserved Filipinos, in line with the Philippine government’s strategy to expand financial inclusion to more people. 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 plans which are expected to transform the country into a more inclusive society with a more independent population in the next six years.
BSP’s 2020 Financial Inclusion Initiative report found that in 2019, only 29% of adult Filipinos had bank accounts and only 19% had formal credit.
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 cellphones and 53% use the internet, only 12% of cellphone owners and 9% of internet users use their devices and the internet. for financial purposes. transactions.
Home Credit Philippines believes that the key to accelerating financial inclusion is to make finance more accessible to more people, especially for unbanked and underserved Filipinos.
Among its key goals for 2022 are expanding access to responsible finance, promoting financial literacy and empowerment, and promoting innovation and digital inclusion.
In 2021, Home Credit Philippines signed a groundbreaking ESG-linked loan with Deutsche Bank to bolster the company’s digitization efforts with 60% of its loans used by customers through digital channels to enable rates and fairer loan terms for clients, regardless of their economic situation. or social environment.
In 2022, Home Credit also signed a pioneering loan facility with Citi aimed at providing access to digital financial services to women with 120 million of the 420 million in this loan facility dedicated to women for the purchase of digital devices. basics such as smartphones and tablets.
Home Credit has granted more than 18 million loans to its 8 million customers. Over 70% of these loan applications were processed through Home Credit’s digital channels.
In June 2022 alone, Home Credit served nearly half a million new customers, more than half of whom were women and more than a quarter of them in the younger bracket.
Home Credit also launched its flagship financial literacy radio segment in June in partnership with Praxis and the Manila Broadcasting Company, which airs 2-minute financial advice on all DZRH stations nationwide. He is set to launch his Wais sa Home financial literacy microsite with financial literacy quizzes and other resources in August and his national Wais sa Home tour aimed at expanding his financial literacy programs for youth across the country.
“Home Credit Philippines remains committed to supporting an equitable post-pandemic recovery in the Philippines through our consumer credit services and solutions. We believe that our financial inclusion programs and financial education initiatives build on the larger vision of empowering more Filipinos,” said David Minol, CEO of Home Credit Philippines.