Home Credit Group (“Home Credit”), a multinational provider of consumer finance to qualified mass market customers, recently announced a plan to invest more than €100 million in additional funds over the next two years to facilitate growth across its existing operations in China, Vietnam and India, and to spearhead expansion into new markets, including Indonesia and the Philippines. The new investment plan follows initial investments of over €300 million into Asia thus far.
In addition to Home Credit’s European business, which launched in 1997 and has so far served more than 28.5 million customers in the Czech Republic, Slovakia, the Russian Federation, Belarus and Kazakhstan, Home Credit serves 2.5 million customers across China, Vietnam and India. The company has granted over €900 million in consumer finance loans to individuals in Asia since 2009, enabling them to realize their aspirations and enrich their lives with the purchase of home electronics, motorbikes, and other items that they otherwise would not have been able to access.
Home Credit’s next phase of development in Asia will see an expansion into new markets. Indonesia is slated to begin operations in the first quarter of 2013 with the Philippines to follow by the second half of 2014.
To facilitate its growth, Home Credit has continued adding point of sale (POS) locations across Asia, from over 12,000 at the beginning of 2012, to a projected 25,000 by the end of year. Home Credit currently employs more than 8,000 people across its Asian markets.
Mr. Jiri Smejc, CEO of Home Credit Group, commented, “We see Asia as the primary growth driver for the Home Credit business globally. By transferring the expertise we have gained in CEE and CIS markets, and localizing this competency through our understanding of the habits and preferences of Asian consumers, we have made excellent progress thus far, establishing a formidable footprint across key Asian markets including China, Vietnam and India. With a strong and growing network of customers, partners and employees, as well as continued confidence and support from our parent company PPF, I have full confidence that the plans we are announcing will help take our Asian business to new heights, enabling millions of new consumers to realize their dreams, and in turn helping to stimulate domestic demand across the economies in which we operate.”
Home Credit’s Asia operations date back to 2004, when it opened a representative office in Beijing, launching operations in Guangdong Province in 2007. In 2009, Home Credit (through its parent company, PPF Group), received a consumer licence, becoming China’s first non-banking lender to be fully capitalized and wholly owned by a foreign investor. Today, Home Credit has a network of 15,000 POS outlets in China. In Vietnam the Home Credit brand launched operations in May 2009 and like in China, provides pay-by-installment loans for motorbikes and consumer durable goods through over 1,000 outlets. In India, Home Credit launched pilot operations in New Delhi and the National Capital Region in January 2012.
Mr. Pavel Vyhnalek, CEO of Home Credit Asia, concluded, “With the support of our shareholders, whose vision foresaw the importance of establishing a first mover advantage in many of Asia’s key markets, we have achieved a leadership position and are today poised for exciting growth not only in our existing markets, but in new ones, including Indonesia and the Philippines. Our “fast food” approach of offering a simple, efficient and convenient financial service has resonated well, and when combined with an industry-leading risk management policy, has enabled us to offer the best possible terms to our clients, many of whom would not otherwise have access to a credit rating, and are essentially being connected to the financial system for the first time through their association with Home Credit. This strategy has afforded us the trust and confidence of a broad range of stakeholders across our Asian markets, where we are now running a profitable business.”