Russian Federation
OOO Home Credit & Finance Bank
The Group launched its operations in the Russian market in 2002 with
the acquisition of Innovation Bank Technopolis (“IBT”). Home Credit and
Finance Bank (“HCFB”)is the only pure retail player in Russia and the
undisputed leader in POS finance with 27% market share (as of 31 March
2011). HCFB offers consumer loans through points of sales outlets as
well as providing lending and other retail banking products through its
own branches. HCFB’s success in the market can be primarily attributed
to its unique distribution network, a powerful combination of
centralized support functions (IT, risk management, funding) and highly
experienced local management.
HCFB made a significant progress in its strategic switch to become
a fully fledged retail bank. Apart from a full range of consumer lending
products HCFB has recently started offering current and saving accounts
and a comprehensive range of deposit products, including salary
accounts. HCFB utilises cross-selling opportunities extremely
successfully, resulting in cash loan quarterly volume growth quadrupling
in 2010. HCFB has developed a broad distribution network in Russia
which includes POS retail partners spread across all regions of the
Russian Federation, supported by HCFB’s own branch and ATM network
expansion. A partnership with the Russian Post also provides HCFB with
additional customer contact points across the country. To further expand
its coverage, HCFB also utilises direct mail, telemarketing, on-line
sales and various forms of partnerships (e.g. agreements with insurance
providers in Russia, third party brokers or via direct collaborations
with employers).
Czech Republic
Home Credit a.s.
Home Credit was founded in the Czech Republic in 1997 and is now
a prominent consumer finance player in its historical home market with
38% share of the consumer finance market (as of 31 March 2011).
Operating in the Czech Republic under the Home Credit a.s. (“HC Czech”)
brand, the business holds one of the top positions in the country for
non-banking consumer finance. HC Czech has over 5,000 distribution
points (c.3,800 POS outlets and c.1,500 post offices) and 442,500 active
clients (as of 31 March 2011).
In the local market, HC Czech offers a broad range of lending
products through the POS partners’ network; direct and telemarketing
activities; and via agreements with the Czech Post, Ceska Pojistovna,
the largest insurer in the country, and Tesco stores. The market in the
Czech Republic has matured considerably since HC Czech commenced its
operations. Nonetheless, HC Czech’s operations remain efficient with
a cost income ratio of 53.3% (as of 31 December 2010). The company
continues to diversify its product mix and develop additional
distribution channels, such as the internet.
Kazakhstan
AO Home Credit Bank
AO Home Credit Bank is one of the consumer finance market leaders in
Central Asia and also one of the most profitable financial institutions
in Kazakhstan in 2010.
In September 2008, Home Credit B.V. acquired a minority stake in
a local Kazakhstan´s bank – AO International Bank Alma-Ata. In November
2008, the AO International Bank Alma-Ata changed its business name to
“Home Credit Bank JSC”. Currently, Home Credit Bank JSC, in which HCBV
owns share of 9.99%, offers to its clients in Kazakhstan a comprehensive
range of consumer lending and deposit products and is active in all
major cities across the country through partner networks (POS), KazPost
offices and through the bank's own branches and commands a 27% share of
the Kazakh consumer finance market (as of 31 March 2011).
India
Home Credit operations in India
In line with our strategic growth plans we launched
operations in India in January 2012. India, one of the most promising
and fast-growing countries with the second largest population in the
world, brings Home Credit outstanding business opportunities and is
a welcome addition to Home credit’s global portfolio.
Headquartered in Gurgaon (Haryana), we embark on our Indian journey
in the nation’s capital New Delhi and the surrounding National Capital
Region (NCR) with the aim of expanding into other regions in India in
the future. Our offering primarily consists of providing in-store
financing (direct non-cash loans in retail outlets) to qualified
customers looking to purchase consumer durable goods such as home
appliances, electronic goods, mobile phones and motorbikes. As we
broaden our distribution network, our range of product offerings will
expand.
China
Home Credit operations in China
Home Credit established its presence in China in 2004 when
PPF Group N.V., the parent company of HC Asia N.V., 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 Asia.
Since July 2007, when Home Credit China (“HCC”) launched its consumer
finance operations in the Guangdong Province, the organization
headquartered in Shenzhen has 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, HCC
has already attracted 1 million customers.
HCC currently provides POS loans on motorbikes and consumer durable
goods through retailer networks as well as cash loans. As of 30 June
2011, Home Credit’s customer base in China accounted for over 453
thousand active borrowers served by 2,825 employees. HCC has also
established a strong relationship with thousands of nation-wide
retailers and local shop owners which enabled it to build up a broad
point-of-sales network comprising 8,191 outlets. The robust back-office
located in Shenzhen, Guandong Province, has recently become capable of
processing over 100,000 applications a day.
The company has 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 is 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.
CFC licence
In February 2010 the parent company of Home Credit received approval
from the China Banking Regulatory Commission to establish a 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, the coastal city in the North,
and named 'Home Credit Consumer Finance Company Co., Ltd.' is the first
such non-banking organization in China to be fully capitalized and
solely owned by a foreign investor. The company was officially launched
in Tian-jin in December 2010 and provides local consumers with a range
of products to support ‘instalment sales in shops’ and also with cash
loans to finance purchases of durable goods, education or travel. The
specialized ‘consumer finance’ license that Home Credit has been awarded
has served to simplify back-office operations and funding processes. It
should produce enhanced performance and efficiency for Home Credit and
also serve to bring added value to cooperating national retailers and
other sales partners as well as to consumers who apply for its branded
lending products. 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
a major footprint of consumer finance operations in mainland China.
