Improved disposition toward using credit, financing to boost spending

By Kris Crismundo

February 7, 2024, 8:06 pm

<p><em>(File photo by Nef Luczon)</em></p>

(File photo by Nef Luczon)

MANILA – Personal consumption, which is one of the biggest drivers of the country’s economic growth, is expected to get a boost as more Filipinos tap financial institutions and formal lenders to borrow money, a financing company said.

Home Credit Philippines (HCPH) chief marketing officer Sheila Paul told the Philippine News Agency that Filipino consumers have improved their disposition toward using credit and financing from formal lenders.

Since 2013, HCPH has served more than 10 million clients, granting a total of PHP295.7 billion in credit for the past 10 years.

“The Philippine economy is [forecast] to grow this year, which gives more potential for stronger real consumer spending, especially since personal consumption is slated to be one of the biggest drivers of growth in the country,” Paul said.

“We see that consumers have a more positive disposition towards using credit and financing. Home Credit, as one of the country’s best customer finance companies, is in a good position to contribute to this foreseen economic growth stimulated by consumer spending and boosting of local businesses,” she added.

The financing firm said it has supported Filipinos’ purchases of gadgets, furniture and appliances, among others.

As of December 2023, HCPH’s loans at the point of sales (POS) has reached 17 million. Borrowings to acquire mobile phones led POS loans, financing 12 million units.

For the past decade, HCPH also financed the acquisition of over 1 million television units and 867,000 computer units.

Paul said this shows that many Filipinos are eager to hop on the latest trends in technology and modern living.

“Thanks to our easy and accessible consumer finance products, we supported countless Filipinos in acquiring gadgets, furniture, appliances, and more, to realize their goals for themselves and their families. In 2013, we began with just seven loans processed, but today, we have officially served over 10 million customers,” she added.

Paul said HCPH closely monitors market and economic developments to ensure flexibility amid any potential uncertainty and proper alignment with broader economic trends. (PNA)