Collectius primed for growth as a FIST Corporation in the Philippines following regulatory approval

·      The FIST Act passed in February this year makes it easier for financial institutions in the Philippines to sell non-performing loans (NPLs) to accredited entities known as FIST Corporations

·      Collectius is among the first companies to be recognised as a FIST Corporation, and believes the FIST Act will boost economic growth in the Philippines

·      Collectius expects more banks in the Philippines to offload NPLs to strengthen balance sheets

Collectius, a leading restructuring partner for financial institutions in Asia, has been approved as a FIST Corporation (FISTC) by the Securities and Exchange Commission in the Philippines, allowing it to purchase non-performing loans (NPLs) in the Philippines as part of the Financial Institutions StrategicTransfer (FIST) Act issued by the government earlier this year.

The FIST Act was introduced to simplify the process for banks and financial institutions in the Philippines to dispose their NPLs through transfers to FIST Corporations. This enables the country’s lenders to offload their debts thus allowing them to extend credit to more sectors within the Philippine economy.  

As a leading Singapore-based fintech pioneer in unsecured debt purchases, Collectius last year partnered with IFC, a member of the World Bank Group, to launch a $60 million Distressed Asset Recovery Program (DARP) dedicated to acquiring and resolving unsecured debt in Indonesia, the Philippines, Malaysia, Thailand and Vietnam. DARP has allowed banks to offload $30 billion in NPLs and is facilitating the normalisation of obligations of more than 18 million households and SMEs.  

The FIST Act will help banks to offload non-performing assets much quicker, thus unlocking capital to support fresh lending that is needed as the Philippine economy recovers from the effects of COVID-19. With its newly acquired status as a FISTC, Collectius is well-positioned to expand its business in the Philippines where it currently serves 1.5 million customers.

“We are proud that Collectius, together with theSEC, are able to lead the way in supporting the stabilisation of the Philippine economy. With the FIST Act, we expect more banks to offload their NPLs from their balance sheets, which would keep credit flowing to support economic recovery,” said Ivar Björklund, Founder and Chief Commercial Officer of Collectius.

Entrusted by major banks and financial institutions, Collectius continues to reinforce its position as the preferred partner for sale of consumer NPLs in Southeast Asia, employing technology and digital-led strategies to build additional servicing capacity. It employs what it calls the ‘Collectius Way of Collections’ – one that is rooted in ethics, compliance with local and international regulations, and a personalised and tailored approach. Collectius also ensures that all customers who undergo its processes benefit from greater financial literacy by gaining knowledge about the accumulation of interest and the different fees that banks and creditors add to an NPL, while guiding them on the journey to becoming debt-free.


About Collectius
Collectius is a leading restructuring partner for financial institutions in Asia. With operations in Singapore, Indonesia, Philippines, Malaysia, Thailand and India, it has a growing footprint of five million customers across these markets. Collectius aims to transform the debt management industry in Asia. Its processes are specifically designed to provide an end-to-end digital user experience that is secure, simple, and frictionless. It is digitally driven to facilitate an efficient and professional mediation process, that sets the benchmark for the wider industry. Collectius is majority-owned by its two founders Gustav A. Eriksson and Ivar Björklund, with the remaining owned byInternational Finance Corporation (IFC), Stena AB and Formica Capital.

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