Sunday, September 24, 2023

Home Credit, Collectius Partner to Manage Indonesia’s NPLs

March 15, 2022 | 3:47 pm
Home Credit app. (B1 File Photo)
Home Credit app. (B1 File Photo)

Jakarta. Consumer finance provider Home Credit Indonesia and digital-enabled debt collection platform Collectius have teamed up to manage 90,000 of Indonesia’s consumer non-performing loans, or NPL, according to a recent press statement.

Not just in Indonesia, Collectius has partnered with other Home Credit branches across Southeast Asia. The partnership enables Home Credit customers to benefit from bespoke and flexible repayment options, which will ease their financial burden. 

“Amidst 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,” Gustav A. Eriksson, the group chief executive officer at Collectius, said in a statement. 

“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,” he said.


Collectius itself focuses on modernizing the traditional debt management industry with technology. 

It seeks to humanize the debt recovery process, while also leveraging a data-driven customer portal for a secure, convenient, and personalized experience. 

This not only eases the customers' debt burden but also provides them guidance on managing finances — something that is needed, given Indonesia’s low financial literacy. A 2019 survey by the Financial Services Authority (OJK) reported that Indonesia's financial literacy index stood at 38 percent.

“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 convenient, seamless, and reliable experiences,” Volker Giebitz, the Finance Director at Home Credit Indonesia, said.

“This aligns with our focus and priority to always serve and keep our customers secure in accessing financial services,” Volker added.

According to Collectius’ press statement, this is a joint acquisition by the debt collection platform and the International Finance Corporation (IFC), the World Bank’s private sector arm.

Both parties partnered in 2020 to launch a $60 million Distressed Asset Recovery Platform Program (DARP) that focuses on the acquisition and resolution of distressed assets across emerging markets. Collectius reported that this program had helped many customers across the region meet their financial obligations and regain creditworthiness.

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