Collectius supports Philippines bank to offload 40,000 NPL accounts in COVID-times
The inevitable consequences of COVID-19 have led businesses and customers to grapple with ongoing economic uncertainties and focus on adjusting to the ‘new normal’. The “Collectius way of collection” bolsters a healthier financial ecosystem by offloading NPLs from banks and financial institutions to improve liquidity and focus on core activity, whilst supporting individuals struggling with debt through professional, tech-enabled mediation.
Collectius, the leading debt management company in Southeast Asia with headquarters in Singapore, has secured a partnership with a leading Philippine bank to purchase over 40,000 accounts comprising of credit card non-performing loans (NPLs). Reinforcing the company’s position as the preferred debt acquisition partner in the region, this marks Collectius’ eleventh partnership with leading local banks, international banks as well as established consumer finance lenders in the Philippines.
Kian Foh, Interim Managing Director of Collectius Philippines, elaborates: “The pandemic has caused a surge in NPLs, impacting financial institutes and everyday households alike. With Philippines’ Enhanced Community Quarantine (ECQ) in effect since March 17, it has taken an extraordinary team from both sides to officially close this deal. Collectius is steadfast in our commitment to approaching each customer with integrity and care, to support them in becoming debt free despite these trying times.”
The sale of the non-core assets will further strengthen the bank’s liquidity position, assisting to sustain the financial stability of the greater economy. Apart from the revenue generated by the sale, the collaboration will enable the selling bank to remove ‘bad debt’ from their balance sheets, instantly recover capital and focus resources on their core activities.
Management of the portfolio will be undertaken by Collectius’ dedicated network of professional mediators. Through the “Collectius way of collection” – a personalized mediation approach powered by technology and enhanced with empathy, customers will receive practical tailored repayment solutions that support them to successfully pay off their debts and regain creditworthiness. As a result, the selling bank also benefits by maintaining a good relationship with customers and mitigating reputational risk.
Collectius is a trusted restructuring partner to banks and financial institutions in Asia with operations in Indonesia, Philippines, Singapore, Malaysia, Thailand and India. Its business is to purchase portfolios of non-performing consumer loans and recover them by supporting its customers to become debt free using the ''Collectius way of collection.'' The company offers a customer-centric approach and operates a data-driven collection platform powered by machine learning and digital first communication. Collectius is majority-owned by the two founders Gustav A. Eriksson and Ivar Bjorklund, with the remaining owned by International Finance Corporation (IFC), Stena AB and Formica Capital.
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