Sprint and Home Credit Launch Strategic Partnership in the US
Wireless consumers now have more choices and flexibility when it comes to financing.
Sprint (NYSE: S) and Home Credit U.S., LLC (Delaware Ltd.), a leading financier of mobile phone devices, today announced the first step in their strategic partnership, a joint venture designed to deliver underwriting services for financing mobile phones and accessories through Sprint’s industry-leading leasing and installment billing program.
Home Credit will initially provide lending arrangements tailored to customers’ unique circumstances and open access to new customers who want more flexibility and choice, such as new installment billing and leasing options. The arrangement will address the needs of customers who feel they have only limited opportunities to obtain financing for their wireless needs, while extending the reach of Sprint’s own equipment financing program. This is made possible by Home Credit’s advanced scoring models which are able to bridge the gaps in individual credit records and help borrowers improve their credit score.
In the longer term, the strategic partnership aims to deepen cooperation between Sprint and Home Credit, expanding both customer and product coverage. It will capitalize on the strong reputation that Sprint has developed as an innovator in the wireless industry with the launch of iPhone Forever and Direct 2 You, and Home Credit’s superior underwriting and risk management expertise, acquired through extensive experience in a wide range of markets, and its world-class proprietary IT platform.
Home Credit has a proven history of inclusive lending to first-time borrowers in emerging markets where only a patchy credit record infrastructure exists. More than 45 million customers have already benefited from solutions that have helped them grow within their communities.
The joint venture company will be based at Sprint’s headquarters in Overland Park, Kansas, and will be managed by Home Credit.
Commenting on the partnership with Sprint, Group CEO Jiri Smejc said, “This partnership illustrates the strategic fit between Sprint and Home Credit, with its successful track record across fast-growing, emerging markets in Europe and Asia. With this bold step we continue the geographical diversification of our consumer credit group with direct access to more than 57 million existing customers and the potential to reach many more in a country of 320 million. We believe that together we can make the latest wireless devices much more widely available with financing options that are easy for aspiring customers to tap into. Over time, this partnership will evolve to a point where customers will be able to benefit from additional financial offers from us. This expansion into a mature market underlines Home Credit’s ability to provide diverse customer groups with financing options while maintaining our sustainable risk profile.”