Collectius retains dominant share of Indonesia’s unsecured consumer NPL segment through latest US$96m NPL purchase
Collectius has acquired three unsecured consumer NPL portfolios amounting to US$96million from a leading local bank whose controlling stakeholder is the largest bank in Japan and the fourth largest bank in the world. This acquisition has enabled Collectius to retain its dominant market share of Indonesia’s unsecured consumer NPL segment. With a growing network within Asia, Collectius aims to expand its debt purchasing solutions for financial institutions in India, Vietnam, and Singapore.
Collectius, the leading restructuring partner for financial institutions in Asia, acquired US$ 96million (IDR1.4trillion) worth of consumer non-performing loans across three portfolios from a leading bank in Indonesia. The bank is Indonesia’s fifth largest lender managing consolidated assets worth IDR 200trillion. Its controlling stakeholder is the largest bank in Japan and the fourth largest bank in the world. The consumer debt acquired by Collectius is comprised of written-off credit card receivables, term and personal loans. This acquisition has enabled Collectius to retain its dominant market share of Indonesia’s unsecured consumer NPL segment. It is their second transaction with the bank after previously acquiring a similar sized portfolio in 2013.
Commenting on the transaction, Gustav A. Eriksson, Group CEO at Collectius said “As Indonesia’s fifth largest lender, this partnership strengthens its overall resilience and profitability, thereby enabling it to further increase its consumer loan growth. Given the widespread impact ofCovid-19, credit restructuring has become the need of the hour as local banks seek to retain margins and enhance risk and liquidity positions. Regionally we have a growing footprint of more than three million customers across Indonesia, Singapore, Malaysia, Thailand and Philippines.”
Adding to that Hendra Rahman, Managing Director of Collectius Indonesia said “We have strong relationships with ten market leading banks in Indonesia. With a team of more than 80employees and an AUM of US$1billion in Indonesia, we are growing from strength to strength. Such purchases give us the opportunity to not just impact the corporates but also our society at large. Amidst these unprecedented times, we continue to educate and empower Indonesians to achieve a debt free life. Our continued partnership with the bank is a testament to the ‘Collectius way of collection’ and brings us one step closer to eliminating the stigma of debt from our society”
Collectius is modernizing the traditional debt management industry by digitally transforming and humanizing the process of recovery. It engages with customers through a data-driven self-service platform that ensures fully digital customer experience that is secure, convenient, and personal. It further taps on its wide network of payments providers within the region to provide customers a seamless and frictionless experience. Where a human touch is required, it has dedicate teams on the ground to initiate an open dialogue with customers to propose bespoke, flexible, and affordable repayment solutions.
Recently IFC, a member of the World Bank Group, became a minority equity shareholder in the company. They also partnered to launch a distressed asset recovery platform dedicated to acquiring and resolving unsecured debt across the region. Collectius is looking to further expand its debt purchasing solutions for financial institutions, to include India, Vietnam, and Singapore.
Collectius is the leading restructuring partner for financial institutions in Asia. With operations in Singapore, Indonesia, Philippines, Malaysia, and Thailand, it has a growing footprint of three 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 by International Finance Corporation (IFC),Stena AB and Formica Capital.
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