Home Credit Group / Operations /

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China

Home Credit operations in China

Home Credit established its presence in China in 2004 when PPF Group opened a representative office in Beijing. With a population exceeding 1.3 billion people, China represents a very attractive, high-margin market for Home Credit.

Since July 2007, when Home Credit China (“HCC”) launched its consumer finance operations in the Guangdong Province, the organization heaquartered in Shenzhen had developed a tailor-made business model based on both operational and funding cooperation with the leading Chinese financial institutions, such as China Development Bank and Fotic Trust. Having successfully calibrated its risk management and operational processes to properly meet the local customers needs, Home Credit China serves over 150,000 Chinese borrowers in 1,800 points-of-sale established with some 800 local retailers in Shenzhen, Guangzhou, Chengdu and other places at the South and South-West of mainland China (as of 31 December 2009).

Moreover, HCC has invested into building a back office facility equipped with one of the most developed IT infrastructures and call centres in China, supported by comprehensive coverage for all consumer finance areas and the capacity to support cross-regional operations. This infrastructure has enabled HCC, in a relatively short period of time, to create a unique business model for China, which combines the demands of the local environment with the best international consumer finance practice of Home Credit’s global operations. The result being that HCC can deliver high value-added services to the partnerships, whilst gaining a unique footprint in the Chinese consumer finance market vis-à-vis international and local competitors.

In February 2010 the parent company of Home Credit has received approval from the China Banking Regulatory Commission to establish Consumer Finance Company in accordance with the specific Consumer Finance Legislation adopted in the country in August 2009. The new consumer finance company established in Tian-jin and named 'Home Credit Consumer Finance (China)' is the first such non-banking organization in China to be fully capitalized and solely owned by foreign investor. Once the company has launched in Tian-jin, the coastal city on the North, it will provide local consumers with the wide range of lending products to finance purchases of durable goods and other consumption needs, including education and travel. The specialized consumer finance license brings to Home Credit a further operational simplification of back-office and refinancing processes. It should result in enhanced performance and efficiency for Home Credit-branded lending products bringing added-value to cooperating sales partners as well as to consumers. Leveraging a proven, strong regional expansion capability, arising from the brand's unique business model, risk control and well organized front-office promotion, Home Credit is set to become the strong footprint of consumer finance operations in mainland China.

Country Manager

Michal Skocil

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