New market entry

Introducing our home credit business to new markets is vital to our long-term development strategy.

We use a rigorous process of research and due diligence to evaluate new markets and calculate the right time to make our entry.

We perform detailed research on the most attractive market opportunities and, together with performance data from our other markets, we assess the size of the target customer base and build a financial model.

Where there is potential for a home credit business, we implement a pilot operation to test the market. If we see long-term growth potential in a new market, we will then begin a full launch and roll-out of a business, increasing our branch network, agent workforce and recruiting more customers.

As a growing international company with a global outlook, we will consider new markets anywhere in the world-as long as they meet our seven rigorous key viability tests.

Seven key viability tests for new markets

Population

The country must have a population of more than 8 million, bringing some 56 countries into possible consideration. This is because the cost of establishing a head office and control infrastructure in a new market is similar regardless of size, thereby making the returns from smaller markets less attractive.

Legislation

We review relevant local laws to identify whether we would need to make any changes to the operating model to ensure compliance. We also need to be happy that courts uphold the law in practice.

Safety

We need to be sure that all employees and agents will be safe. We would not enter any country where there was civil unrest and we would be cautious about countries with high perceived levels of corruption.

Funding

We need to be sure that we can obtain funding in local currencies. A key strength of our business model is that we borrow and lend in the local currencies.

Individual wealth

We need to establish the basic income levels of the population to make an initial assessment of our potential customer base and the size of loans they would be able to repay.

Economic performance

The local economy must be relatively stable and strong.

Political environment

We look to work in stable, democratic countries, where the rule of law applies. This also helps to ensure we can apply our business principles such as respecting human and labour rights.

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