April 16 - 30, 2016
PHILIPPINE ASIAN NEWS TODAY
BUSINESS NEWS
Demand for non-bank loans seen to rise
– Home Credit PH
An international consumer finance company is
expecting a rise in demand
for non-bank lenders in
the country, even as loans
from banks continue to increase, because of higher
consumer electronics consumption.
David Minol, CEO of
Home Credit Philippines,
said that a vast majority of
Filipinos still have no bank
accounts and many of them are
in need of financing despite banks
reported increase in lending.
“The demand for appliances and other consumer goods
continues to rise, and this applies
not just to the upper class, but to
the everyday working Filipino as
well,” noted Minol.
BMI Research cites a strong
medium-term growth for consumer electronics consumption
in the Philippines, including audio-visual equipment such as
TVs and digital cameras, and
handsets as households acquire
sufficient disposable income for
the first time.
From 2016 to 2020, BMI
Research forecasts a compound
annual growth rate of 6.8% in the
consumer electronics sector.
Data from Euromonitor and
GfK show that the Philippines is
seeing an increased demand for
appliances, with the sector grow-
ing by 6% in 2015. Following this,
the demand for financing options
is set to grow even stronger.
“For many of these Pinoys,
these household products are
not ‘wants’; they are ‘needs’. This
means that availing these products is of utmost importance for
their families. And with no access
to credit cards or bank financing,
they will seek other safe, viable
ways,” Minol added.
Since it was established,
Home Credit has seen a steady
increase in loan applications,
most notably during the fourth
quarter holiday season, and the
summer months when graduation gift items and appliances
such as air conditioners are in
greater demand. According to
Home Credit, the top purchases
are mobile phones, with home
appliances such as TVs, refrigerators and washing machines a
close second.
Present in close to a thou-
B5
PNT Foreign Exchange
$1.00 Cdn = P37.13Php
$1.00 US = P 46.86
sand retail outlets nationwide, Home Credit
booths are strategically placed at partners’
points-of-sale.
“We want to be
where the consumers
are and ensure that the
process is fast, easy
and simple for them.
We’re working with a
lot of retail partners
that offer a wide variety
of product choices to consumers,
and with alternative, non-bank financing options such as Home
Credit, there is less risk of consumers walking away from the
things they need to purchase.
“This also ultimately drives
consumption and increases the
demand for these goods,” added
Minol.
The Home Credit CEO explained that the company has
seen encouraging growth since
being established in the country in 2013, and has now served
nearly 200,000 customers in Metro Manila, key provinces in Northern Luzon and Metro Cebu in the
Visayas who have purchased different products including tablets,
flat screen TVs, mobile phones,
and home appliances such as air
conditioners and refrigerators.
The company expanded its
operations to Cebu and Pampanga last January.(mb online)
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D1.00 BHD= P 124.24
R1.00 SAR = P 12.49
¥1.00 JPY= P 0.42
PAL to acquire six planes, spare parts
Flag carrier Philippine Airlines has programmed up to
$800 million in capital expenditures this year to acquire six new
aircraft and spare parts, its top
executive said over the weekend.
PAL president and chief
operating officer Jaime Bautista
told reporters the investment
would be between $600 million
and $800 million this year, higher
Boeing 777-300 ER and four Airbus 321,” he said.
PAL earlier signed a deal
with Airbus to acquire six A350900 jets worth $1.8 billion, with
an option to buy six others to
support its long-haul operations.
PAL plans to deploy the
A350 XWB (extra wide body),
which seats more than 300, on
new routes to North America and
from last year’s $400 million capex.
Bautista said the airline
would spend the amount to acquire six airplanes and spare
parts.
“We are taking delivery of
six more airplan W2F