Thursday, 30 March 2023

Home Credit and Collectius partner to manage 90,000 consumer NPLs in Indonesia

5 min read

Home Credit Indonesia and Collectius have partnered to manage 90,000 of Indonesia’s consumer non-performing loans (NPLs).

From the partnership, customers of Home Credit stand to benefit from bespoke and flexible repayment options which will ease their financial burden. Collectius has partnered with not only Home Credit Indonesia but also other Home Credit branches in South East Asia.

This is a joint acquisition by Collectius and IFC, a member of the World Bank. Both parties partnered in 2020 to launch a $60 million Distressed Asset Recovery Platform Programme (DARP) that focuses on the acquisition and resolution of distressed assets across emerging markets. Through this programme, it has helped many customers across the region meet their financial obligations and regain creditworthiness. IFC is also a minority equity shareholder in Collectius.

Gustav A. Eriksson, group CEO of Collectius said, “We are pleased to partner with Home Credit once again and deepen this relationship within the region. This partnership is a testament of the trust placed in Collectius to help individuals attain freedom from debt. Amid these unprecedented and challenging times, we fully understand people's struggle in coping with the pressure to survive, increasing household responsibilities, and fear of mounting debt. By harnessing the power of technology, financial literacy, and compassion – our objective is to help Indonesians navigate these challenges and improve their overall financial wellbeing”.

Collectius is modernising the traditional debt management industry by providing a fully digital customer experience in a secure ecosystem and humanising the process of debt recovery. It leverages its data-driven customer portal to provide a secure, convenient, and personalised experience. In doing so, it not only eases the debt burden for its customers but also provide them guidance on managing their finances . Currently, most consumers in Indonesia, especially the younger generation, lack adequate financial literacy and are hence more vulnerable. According to a nation-wide survey by the Financial Services Authority (OJK), Indonesia scored only 38% on the financial literacy index.

Volker Giebitz, finance director at Home Credit Indonesia commented, “COVID-19 has severely impacted the society as a whole. However, we remain steadfast and committed to providing much-needed financing options for Indonesians. Despite the downturn, we see a sustained boost in shopping activity locally. In November 2021, the consumer confidence index has recorded the number 118.5, which shows that the optimism level has bounced significantly. Partnering with Collectius helps us to focus on enhancing our solutions to benefit customers. Collectius has become our trusted partner with their top-notch technology system which provides our customers with a convenient, seamless, and reliable experiences. This aligns with our focus and priority to always serve and keep our customers secure in accessing financial services”.

Home Credit Indonesia is part of the Home Credit Group, an international consumer finance provider. In Indonesia, it was established in 2013, to provide Indonesians easy access to financing for their dream items such as purchasing household electronics, gadgets, furniture, fashion items, gaming console, and so on.

Re-disseminated by The Asian Banker

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