27 July 2023
Bangkok (27 July 2023) –
Krungsri (Bank of Ayudhya PCL and its business units) is moving forward to expand its auto lending and consumer lending businesses through two business networks in the Philippines, namely
SB Finance, Inc., a joint venture of Krungsri and Security Bank Corporation (SBC) which is a leading financial institution in the Philippines, and
HC Consumer Finance Philippines, Inc., or Home Credit in the Philippines, with an aim to cater comprehensively to diverse customer needs in the area of consumer financing. The strategic move is one of the major drivers for identifying new business opportunities and reinforcing business strengths in ASEAN, aligning with Krungsri’s business plan.
Mr. Wanchairabin Jitwattanatam, Krungsri Head of Regional Business Division, said “The Philippines offers significant business potential with a population of over 113 million and a large working population averaging around 25-26 years old. Moreover, the country is currently enjoying favorable economic growth. We are confident in expanding our business here. Previously, Krungsri built on its expertise in extending retail financing products in the Philippines through SB Finance by launching flagship loan products such as Car4Cash and motorcycle loans in the market, which were very well received. At the same time, SB Finance also accelerated the growth of Salary Advance Loan making them one of the leading players in the market. Since Krungsri acquired SB Finance’s stake in late 2020, the joint venture’s outstanding loans have grown by over 40% and the customer base has doubled.”
“Krungsri has now expanded its existing footprint in the Philippines following the successful stake acquisition of Home Credit. This will be another key to ensure comprehensive offering of products and services pertaining to consumer finance by leveraging Home Credit’s position as a market leader in the point-of-sale loan segment, with a vast network of more than 15,400 service points nationwide. In addition, Home Credit also provide personal loans, digital revolving loans, and credit card services. As of June 30, 2023, Home Credit recorded 46.5 billion pesos (equivalent to 29 billion baht) of total net outstanding loans and had an active customer base of over 2.5 million. It was also distinguished as the most recognized brand in the segment of point-of-sale loans in the Philippines, according to IPSOS consumer survey in October 2022. Amidst the intensifying competitive environment, the vital strategy is to protect the position as the market leader of such product. Meanwhile, Krungsri remains committed to supporting Home Credit’s growth in retail financing market including new product introduction.”
Mr. Wanchairabin concluded that both businesses of Krungsri have complementary strengths. Krungsri is ready to use its expertise in retail finance to foster growth and deliver quality and comprehensive financial solutions with easy accessibility, convenience, and greater speed. They are expected to be the major drivers propelling to maintain Krungsri’s leading position and develop a sustainable retail finance market in the Philippines.
For further details about Krungsri’s businesses and networks in ASEAN, please visit our website:
https://www.krungsri.com/th/asean