While many malls across the country are seeing a resurgence in foot traffic as lockdown measures and COVID numbers stabilize, there is also a surge in demand for work from home (WFH), teaching online, home improvement and other “new normal” needs.
This goes hand in hand with an increase in demand for consumer finance, with more Filipinos using installment plans for home and work essentials so far this year compared to 2020, according to the leading consumer finance company Home Credit Philippines.
“We’re definitely seeing more people in malls, and more people shopping and lending for family needs,” said David Minol, chief executive of Home Credit, a Prague-based provider of finance to in-store consumption and digital financial services. “It’s another encouraging sign that people are gradually recovering from what has been a very difficult year for all of us.”
Midway through 2021, Home Credit has so far seen an increase in loan volume and served customers compared to 2020, according to Minol, with 10.6 billion pesos in point-of-sale loans – offers of installments for products used at Home Credit. partner stores – already used by nearly one million customers in the first half of this year. To date, the company has served over seven million customers since introducing consumer finance to the country in 2013, enticing consumers with its simple loan requirements and quick one-minute approval.
“Demand for Home Credit’s inclusive and affordable financial products has grown at an exciting rate since we opened a store in the country,” Minol explained. “Demand was there even at the height of the shutdowns, but with shopping malls closed and people staying safe at home, not to mention the economic challenges of the pandemic, our expectations were tempered as we prioritized the safety of our customers and employees. But with the majority of our partner stores across the country back up and running, we are excited to welcome our customers back and provide them with the best possible experience.
Minol noted that Home Credit‘s top-selling product for financing in 2021 remains smartphones, televisions, refrigerators, laptops and sports equipment rounding out the top five list. “It’s an interesting bestseller list because it reflects the priorities and lifestyles of Filipinos in the new normal. They place a high value on things that allow their families to live, work and play better.
Air conditioners were also a high demand product, especially during the summer, as Home Credit saw a 125% increase in cooling product sales, from P132M in the first quarter to P296M from April to May, at its peak. of the company’s “Beat the Init” promotion.
While the company is seeing strong customer return to malls, it has also noted that its mobile user base also continues to grow. “We know Filipinos have a strong mall culture, and it still shows in this new normal. But what the past few months have also shown is how digitally savvy Filipinos have become, especially when it comes to e-commerce and online shopping,” Minol remarked.
“So we’re happy to say that our mobile app also remains as strong as ever, helping our customers with everything from managing their accounts, to applying for new loans, to paying bills with their home credit card, to paying for goods using QR codes, to exciting offers, discounts from our merchant partners, and even buying new gadgets. We are able to offer the best of both worlds to our customers, whether they prefer to shop in malls or from the comfort of their own home through our app. »
The My Home Credit app, available on Google Play, has been downloaded more than six million times, and its active user base includes the company’s point-of-sale and cash loan customers, cardholders Home credit, Marketplace online shoppers, and Smile Discounts customers. At the same time, the company is present in more than 9,000 physical partner stores nationwide.