Home Credit releases stunning market share data

This information was released by Igor Prerovsky, CEO of Home Credit Vietnam, at a recent press meeting.

In 2013, Home Credit exceeded its business targets impressively. It contributed more than VND180 billion ($8.57 million) to the state budget, increased its customer base by 1.3 million, and grew its outlets to 5,000 in 63 cities and provinces nationwide, according to the firm’s April 2014 data.

“Home Credit has great advantages in the consumer lending sector, with a broader network, diverse products, quick approval processing and extremely professional training for sales agents,” Igor said.

He said that regarding its business model, the company handles 5,000 loan applications every day, which are approved or denied with 10-15 minutes each, all while strictly protecting the identities of customers.

In terms of corporate income tax, Home Credit was one of the biggest contributors in the financial industry in 2013.

According to Home Credit, one of the most significant factors in measuring up its success has been changing consumption behaviour. Accordingly, instead of saving money for a long time to buy products, Vietnamese consumers now tend to buy it first and make payments by saving later.

Home Credit statistics show that 20 per cent of its customers in the south bought products through consumer finance, while the rate was 10 per cent in the north.

The company also revealed that 75 per cent of consumers who apply to Home Credit are accepted for loans. And that its non-performing loans were only at 4 per cent due to good risk management.

To ensure stability in the Vietnamese market, Home Credit emphasises service quality, particularly in terms of its consultants.

 “The ability of our consulting staff, thanks to their training, is the key to ensuring payment. Our staff go through the terms and conditions of the contract with customers very carefully so they are clear on their payment responsibilities. Each staff member knows that if a consultation does not go well, the company will suffer from risks – customers who cannot pay debts.

“We have also organised programmes to deliver financial knowledge to Vietnamese people by the distribution of thousands of consumer lending booklets so customers have all the necessary information before signing a contract,” he said.