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Big Data Analytics Proves Crucial in Servicing Unbanked Sector
04.11.2016

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Big Data Analytics Proves Crucial in Servicing Unbanked Sector

Published on 4.11.2016

 

As the Philippines continues to be one of the fastest growing economies in Asia

the increase in disposable income and growth in consumer lending have been on a parallel high.

Despite this, however, the Bangko Sentral ng Pilipinas (BSP), in its latest available National Baseline Survey on Financial Inclusion (NBSFI), found that 61.9% of creditors continue to borrow from family and friends. In the study, of every 100 Filipinos, an average of 77 still have no access to formal credit, presenting a viable market of over 4 million individuals for consumer finance companies or non-bank lenders.

Consumer finance firms focus on personal loans mostly to first-time borrowers who bear little to no credit history. These clients include unemployed family members of Overseas Filipino Workers (OFWs), the self-employed, and freelance/project-based workers who would otherwise be declined by banks and other similar formal financing institutions due to lack of a steady income and other verifiable qualifications.

Local subsidiary of international consumer finance firm Home Credit has taken the lead in providing small short-term loans for appliances and gadgets at purchase points like department stores, mobile phone outlets, and appliance centers. Such services provided “on the spot” require the consumer finance firm to be more agile – working with less documentary requirements and processing applications at a much faster pace at an average of 11 minutes, with half of their customers approved in less than 5 minutes.

This type of “instant” loan, while favorable to buyers, does away with the typical credit investigation process, which would have taken days or weeks at banks. Instead, consumer finance companies mitigate the risk of loan defaults with Data Analytics.

“Our service relies heavily on data that customers provide as well as information that comes from external sources. We invested in Big Data, a state-of-the-art back-end technology that systematizes approvals. It is vital that the information obtained are accurate, so that credit risk is reduced,” explains Home Credit’s Chief Risk Officer, Leos Gregor.

Aside from Data Analytics, Home Credit – which has served close to 400,000 customers since entering the market in October 2013 – evaluates the credit score of every customer to estimate the probability of loan default. The company is expected to work closely with the government, specifically the Credit Information Corporation (CIC), to gain access to a large database of credit reports from various credit bureaus and other financial institutions.

“What is critical is to have good quality data and to have those data available quickly because in our business model, even seconds matter,” shared Gregor. “Our goal is to deliver the best customer experience along with the best possible products. This can, in turn, attract the right kind of customers who can make a positive impact on our risk performance.”

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North to South: Home Credit launches in Baguio and Iloilo
21.10.2016

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North to South: Home Credit launches in Baguio and Iloilo

Published on 21.10.2016

 

 

Home Credit is showing no signs of slowing down in its expansion in the Philippines

as it recently launched its operations up north in the country’s summer capital of Baguio City, as well as down south in the key Visayan province of Iloilo.

The latest roll-out comes off the heels of Home Credit’s already well-received launches in Central Luzon, including in Pampanga and Bulacan, and Pangasinan. With these latest locations, the company is poised to further strengthen its market share in both Luzon and Visayas.

“We’ve been eagerly awaiting these launches for quite some time now,” explained Head of Sales Adam Bernasek. “Baguio and Iloilo are definitely strategic areas, with thriving consumer segments. So our eyes were definitely set on these areas and we can’t wait to launch in more stores there.”

According to Home Credit’s Head of Roll-out Andrea Halkova, the company’s presence in Iloilo is already significant from the get-go, with sales now ongoing in SM City (30 stores), Robinson’s Place Iloilo (14 stores) and other key retailers such as Memo Express and Rulls.

The Baguio expansion is likewise already in full swing, with Home Credit sales associates now present in various stores in SM Baguio, Centermall, and select stand alone outlets.

Helkova added that the expansion is good news not just for customers, but for jobseekers as well, as the company is looking to hire up to 50 employees each in Baguio and Iloilo.

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OPPO and Home Credit team up again for F1s promo
15.08.2016

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OPPO and Home Credit team up again for F1s promo

Published on 15.08.2016

 

 

Just recently, OPPO unveiled the latest hero product in its “selfie expert” line,

the OPPO F1s, in a huge launch in Pico de Loro. It was a big event, and a fitting one for the OPPO F1s, as it promises to be even better than its predecessor. And with a 16-megapixel front-facing camera that’s perfect for selfies, group photos, and video calls; a powerful rear camera with a 13-megapixel sensor; and an MT6750 octa-core processor with up to three gigabytes of RAM, among many features, “better” is definitely an understatement!

With the latest selfie expert sure to generate massive demand from OPPO fans, the company is again providing innovative and affordable ways to help more people purchase the phone, through another exciting partnership with Home Credit. Earlier this year, OPPO and Home Credit teamed up to offer the OPPO F1 at 0% installment. The promo was a huge hit, generating a 61% increase in sales. Following this successful promotion, OPPO and Home Credit are once again joining forces in bringing the latest addition to the “selfie-expert” smartphone series within the reach of gadget-loving consumers.

Under this new partnership, customers can avail of the new OPPO F1S at 0% interest with a monthly payment of as low as P2,165 per month for six months. Applying and getting approved for a Home Credit loan is easy, simple, and fast. All they have to do is present two valid IDs and an initial cash-out at the Home Credit kiosk in selected retail partners. Approval of the loan application only takes around 15 minutes or less, and once approved, customers can already take their new OPPO selfie-expert smartphone home.

“Home Credit aims to bring smiles to many Filipino customers as we offer the newest OPPO F1S at very affordable installments,” said Home Credit Philippines’ Head of Sales, Adam Bernasek. “We are thrilled to be partnering with OPPO once again, and we look forward to helping even more Filipinos avail of the best selfie phone in the market.”

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