Financing company to finance Davao TODA drivers via loans

Financing company Aeon Credit Service Philippines opened its first branch in Davao City and is eyeing to capture driver-members of a Tricycle Operators and Drivers Association (TODA) in this city.

Lawyer Dennis Siapno, executive vice president of Aeon Credit Service said they are targeting customers that are unbanked and undeserved like the tricycle drivers to help them improve their lives.

“Aeon Credit is a financing company in the Philippines with head office in Japan, we actually offer consumer loans meaning retail loans to customers.  So unlike credit cards or the traditional we do cater to those who actually do not have any bank accounts. It is very difficult to borrow if you don’t have any credit history but for us we took the risk and we really support the government’s financial inclusion. That is the vision of Aeon even in Japan. We wanted everyone on board through financial services that eventually improve their lives and provide them source of livelihood like the tricycle drivers,” Siapno said.

Aeon Credit is located at the second level of the Davao Finance Center.

Siapno said a tricycle driver could avail a loan as high as P150, 000 with an interest of 1.5 percent that they can pay for four to six months or two years.

When it comes to the tricycle loans, Siapno said their approach is to course it to the TODA organization and from there, they present it to the entire organization.

“TODAs in the Philippines are very organized. They have one set of leaders and members report to their leaders.  The approach is not on the TODA mismo who will actually avail of the loan but individuals,” he said.

Michael Tabanay, Vice President for Business Control Division of Aeon said presently, they are working with over 30 TODAs in Davao City and their goal is to cover as much as a hundred. He said in Davao City, they are strong in the motorcycle brand RE (rear engine) Bajaj.

“We want to go as far as Tagum City. Within the year we will be going to General Santos City. We have a very good connections with tricycle drivers here in Davao City. Like in Buhangin, we finance Bajaj motorcycles,” he said.

Tabanay said they have a sales target of  P40 million to P50 million a month in Davao City. 

” We are aiming to achieve that by working with the TODA presidents. We want to partner as much as many todas as possible. Secondly, we want to work closely with Emcor, which is a staple already when you want to buy a motorcycle,” he added.

Siapno said with Aron Credit TODA drivers  no longer rent their tricycles, but own them. “These are people who don’t have source of income, which is only the tricycles but we took the risk and so far we are doing very well.”

About Aeon Credit

Aeon Credit Service Philippines is a financing company initially offering installment loans for the purchase of consumer products like home appliances, furniture, and electronic products to the unbanked population or those who have very limited access to financial services.

It’s second branch outside Manila (main) with first branch in Cebu, Aeon Credit is a subsidiary of AFS Corporation Co. Ltd. (AFSC), a bank holding company under the umbrella of Aeon Bank and wholly owned by Aeon Financial Service Co. Ltd. (AFS), which is listed on the first section of the Tokyo Stock Exchange. The core business of AFS is the issuance of credit cards and prepaid cards.

“We saw the potential of growth in Davao considering its strategic location. That is why we wanted to have established a branch here that would also cater to the rest of the Mindanao region,” Siapno said.

AFS is a member of the Aeon Group, which is one of Japan’s biggest retailer group including prominent brands like Ministop, The Body Shop and Kidzoona.