Our multi-channel approach
We are pursuing our strategy to deliver sustainable growth, enhance our profitability and make efficient use of capital.
Our strategy reflects the dynamic markets in which we operate where demand for unsecured, small sum credit is growing, particularly for digital loans, but where competition and regulatory oversight has also intensified.
In response to these market drivers, our operations are segmented into ‘Growth’ and ‘Returns’ focused businesses to reflect the fact that they are at different stages of maturity. We see significant growth opportunities in our IPF Digital and Mexico home credit businesses supported by investment in capital generated by our high returns European home credit businesses. To deliver this strategy, we are also modernising the business by investing in technology innovation and developing our people and capabilities.
Growth focus – IPF Digital
IPF Digital represents an exciting strategic priority for the Group driven by increasing demand for digital loans. We are focused on growing this business, particularly in our four new markets of Poland, Spain, Australia and Mexico, and IPF Digital is expected to deliver its maiden profit in 2018.
Growth focus – Mexico home credit
While performance in the first half of 2016 was below our original expectations, we continue to believe that Mexico offers significant growth potential for our home credit offering and therefore we will continue to invest in controlled geographical expansion and new product lines.
Returns focus – European home credit
Our European home credit businesses are highly cash and capital generative. We manage these businesses to provide a good service to our customers and optimise returns to fund growth in our IPF Digital and Mexico home credit businesses, and to provide progressive returns to our shareholders.