Women Dominate the Loan Market in the Philippines
According to a recent report by consumer finance company Home Credit Philippines, more than half of the 10.4 million Filipinos who have taken out loans as of December 2023 were women. This statistic highlights the significant role that women play in the country’s borrowing landscape.
Home Credit’s marketing officer, Sheila Paul, revealed that around 5.5 million women have signed loan contracts with the company, surpassing the 50 percent mark. In the past year alone, 560,000 women have availed of loans through Home Credit, further emphasizing their influence in the decision-making process when it comes to family finances.
Paul explained that Home Credit’s internal study indicated that mothers and wives often take the lead in making financial decisions for their families, including the choice to take out a loan for various purchases. This insight sheds light on the important role women play in managing household finances and the trust they place in financial institutions like Home Credit.
The Borrowing Habits of Filipino Women
When it comes to the amount borrowed, Paul mentioned that the average loan from Home Credit ranges between P15,000 and P20,000. While this may seem like a modest sum, it can make a significant difference in the lives of many Filipinos.
Furthermore, Home Credit’s data revealed that a majority of women borrowers, approximately 55 percent, used their loans to buy mobile phones, gadgets, and other household appliances like televisions. This trend reflects the increasing importance of technology and connectivity in the lives of Filipinos.
Looking towards the future, Paul shared that Home Credit is expanding its offerings to include e-bikes and air conditioners. In fact, their upcoming summer campaign will focus on promoting energy-efficient air conditioners, catering to the needs and desires of their customers.
Paul also mentioned that Home Credit has been financing iPhones for the past two years. Even when the latest iPhone model, the iPhone 15, was launched, many consumers opted to purchase older models through Home Credit. This demonstrates the brand’s ability to adapt to changing consumer preferences and provide flexible financing options.
Home Credit’s Growth and Future Plans
Despite the success of 2023, Paul emphasized that Home Credit intends to remain conservative in its approach this year due to macroeconomic challenges. The company aims to maintain a healthy cash flow and continues to secure funding from banks to support its growth and expansion.
As a leading consumer finance brand in the Philippines, Home Credit has attracted significant investment. In 2023, a consortium comprising Japan’s Mitsubishi UFJ Financial Group and Thailand’s Krungsri Bank acquired Home Credit Philippines. Mitsubishi UFJ Financial Group holds a 25 percent stake, while Krungsri Bank holds a majority 75 percent stake in the company.
This acquisition not only reflects the confidence of these international financial institutions in Home Credit’s business model but also highlights the potential for further growth and development in the Philippine market.
In conclusion, the dominance of women in the loan market in the Philippines is a testament to their financial decision-making power within households. Home Credit’s focus on providing flexible financing options and expanding its product offerings demonstrates its commitment to meeting the evolving needs of Filipino consumers. As the company continues to navigate macroeconomic challenges, it remains well-positioned to support the financial aspirations of women and families across the country.
Source: The Manila Times