Krungsri and MUFG Acquire Home Credit Philippines, Expanding Consumer Finance Market

 

In a significant move within the consumer finance industry, Thailand's Krungsri and Japan's Mitsubishi UFJ Financial Group (MUFG) have joined forces to acquire Home Credit Philippines for P24.4 billion. The acquisition aligns with Krungsri's ASEAN expansion plans and demonstrates the growth potential that both companies envision for Home Credit Philippines. This strategic partnership aims to cater to the evolving financial needs of Filipino consumers by offering a comprehensive range of innovative consumer finance products and services.

Home Credit Philippines, a subsidiary of Czech Republic-based PPF Group, recently announced that it has been acquired by Krungsri and MUFG. Krungsri, which will hold a 75 percent stake, and MUFG, with the remaining 25 percent, are making a significant entry into the Philippine market, emphasizing their commitment to expanding their consumer finance operations within the ASEAN region.

The acquisition of Home Credit Philippines represents a strategic move by Krungsri and MUFG to tap into the thriving consumer finance market in the country. With the company's established brand and strong presence in the Philippines, the acquisition provides a valuable growth opportunity for both Krungsri and MUFG to further expand their reach and maintain dominance within the local consumer finance industry.

Despite the change in ownership, Home Credit Philippines assures its customers that it will continue operating under the same local leadership team and retain its well-recognized brand. The acquisition is expected to empower Home Credit Philippines with the support and guidance of Krungsri, enabling the company to enhance its customer-centric approach and cater to the evolving financial needs of Filipinos.

Krungsri President and CEO Kenichi Yamato expressed his optimism about the acquisition, stating, "By incorporating Home Credit in the Philippines into its portfolio, the Bank aims to cater to the evolving financial needs of consumers with a full range of innovative consumer finance products and services." This collaboration will enable Home Credit Philippines to leverage the expertise and resources of Krungsri and MUFG, ultimately benefiting Filipino consumers through improved access to credit and financial solutions.

Home Credit Philippines has experienced remarkable growth, with its customer base reaching nearly 10 million. The acquisition by Krungsri and MUFG is expected to further boost Home Credit Philippines' business operations and strengthen its position as a key player in providing credit access to Filipinos. With this strategic partnership, Home Credit Philippines can leverage the extensive networks and expertise of Krungsri and MUFG to enhance its services and foster financial inclusion in the Philippines.

The acquisition of Home Credit Philippines by Krungsri and MUFG marks a significant development within the consumer finance industry in the Philippines. This strategic partnership showcases the confidence that both companies have in the growth potential of the local market. With a focus on offering innovative consumer finance products and services, the collaboration aims to cater to the evolving financial needs of Filipino consumers, driving financial inclusion and empowering individuals with enhanced access to credit and financial solutions.