Our strategy and financial model

Our Next Gen strategy sets out a clear plan to become the leading provider of financial services to underserved communities around the world.   It is guided by a clearly defined financial model which aligns all stakeholders and is bound by a target return on required equity (RoRE) of 15% to 20%.  

Next Gen strategy

Our evolution to a more modern, multi-product, multi-channel and digitally-enabled business is captured through our Next Gen strategy.  

It encapsulates our vision to serve 2.5 million customers by innovating, digitising and connecting our business to deliver a better experience to our customers whilst retaining the human touch that has helped set us apart from our competitors.

Our three strategic pillars drive our response to unlock substantial and sustainable long-term growth opportunities.

Our financial model

We operate with strong financial discipline to ensure our loans are affordable while delivering an appropriate financial return which balances the needs of all our stakeholders.

The most integral part of our financial model is that we must deliver a return on required equity (RoRE) of between 15% and 20% that enables: 

  • Fair, affordable and transparent pricing;

  • Legal and regulatory compliance; 

  • Care for our colleagues and our communities; and 
  • Sustainable returns for our shareholders.

We believe that returns materially in excess of this range would result in us not balancing the needs of all of our stakeholders in delivering our purpose. 

As we capture the significant growth opportunities we see for the Group, we aim to deliver sustainable earnings whilst maintaining a strong balance sheet, adopting a minimum return to shareholders of 40% or post-tax earnings and investing in the future growth of the business. 

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