An overview of
Our Business Model
Our home credit and digital business models drive our strategy and are underpinned by a robust governance framework. They work together to drive returns for shareholders, while delivering value for our customers, people and the communities in which we operate.
Finance and Treasury
Delivering Sustainable Profitability
We are well-funded from diversified sources to support the long-term growth of the business. Our established home credit businesses are cash and capital generative enabling investment in IPF Digital and growth home credit operations. We are committed to maintaining a strong balance sheet and we expect our strategy will generate a sustainable profitable performance which will, in turn, increase value for shareholders.
Delivering home credit and digital loans
Our customers are underserved by mainstream financial services providers. We know them well and have introduced new loan products to match their changing needs. Our customers want small-sum loans that are repaid in manageable instalments, either in their home, or direct via their bank account through our money transfer or digital offerings. We attract customers to our multi-brand portfolio through traditional and online marketing. Our agency force is also a powerful source of word of mouth recommendations for the home credit business.
Sales and Excellent Service
We understand our customers
Our home credit agents have strong, personal relationships with their customers and provide a valuable, convenient service. Our digital business utilises customer relationship management systems to generate further sustainable sales. To date, forbearance has been an important feature of our offering whereby home credit customers taking our agent service are not charged any default or penalty fees when they face financial problems and miss a repayment. This is unique to our home credit business but as the regulatory and competitive environment evolves we are considering how to make this feature more relevant. Digital customers with a good repayment history may take a repayment holiday periodically.
For both our home credit and digital business models, credit risk is managed carefully through robust application scoring systems, supported by credit bureaux, and for existing customers we use powerful behavioural models. We have a ‘low and grow’ strategy starting new customers on smaller, shorter-term loans and only offer more credit once their creditworthiness is proven. In our home credit business, agents meet their customers in their homes and are critical to good lending decisions. They are also rewarded largely on the amount of money they collect from customers which supports responsible lending.