Home Credit ventures into credit card business

MANILA, Philippines — The Philippine unit of Amsterdam-based Home Credit Group has ventured into the credit card business after getting the green light from the Bangko Sentral ng Pilipinas (BSP) to further boost its consumer lending business

Restituto Cruz, director in charge of the BSP’s Financial Supervision Sector, issued a circular announcing the Monetary Board has granted authority to the HC Consumer Finance Philippines lnc. (HCPH) to operate as a credit card issuer.

HCPH started its credit card operation last November after receiving the corresponding certificate of authority to operate as a credit card issuer from the central bank.

Cruz said HCPH is the first stand-alone non-bank financial institution to apply for a credit card license acted upon by the BSP pursuant to Republic Act 10870 otherwise known as An Act Regulating the Philippine Credit Card Industry and its implementing rules and regulations under Circular 1003.

In May last year, the regulator issued the guidelines on the establishment and operations of credit card issuers to implement RA 10870.

The Home Credit Group has presence in 11 countries in Central and Eastern Europe, Asia, and North America. It started its operations in the Philippines in October 2013.

It promotes the principles of financial inclusion and safe lending, providing world-class financing services to customers, often first-time borrowers.

Its core business in non-cash, no-collateral in-store financing of purchase to qualified mass-market customers, seeking to purchase appliances and mobile devices (computers, tablets, laptops and mobile phones) through monthly installments.