Post-icon Created with Sketch. dropdown Created with Sketch. Link-icon Created with Sketch. Sluiten-icon Created with Sketch. primairy servicing Created with Sketch. Link-icon Created with Sketch. Fill 1 Created with Sketch. Page 1 Created with Sketch. Twitter Created with Sketch. Video icon
13/12/2017 - news

Support through Financial Servicing

Vesting Finance facilitates ‘Financial vitality and growth of companies’

‘We’ve really grown considerably,’ says Erwin de Boer, Chief Commercial Officer at Vesting Finance. In 1996 the company started with 2 people offering purely collection services. Now Vesting Finance is the market leader in the Benelux in financial servicing and credit management. A solid organisation, a subsidiary of the UK-based Arrow Global, market leader in the purchase and management of credit portfolios. They buy portfolios from banks, credit card companies and telecom companies. Vesting Finance employs around 650 people and will shortly be relocating its 5 offices to a new site in Amersfoort.

Many banks and insurance companies have faced compliance with the Basel regulations in recent years and are aiming to improve their solvability positions. Portfolios that weigh heavily on the balance, for example mortgages or consumer credits, are being marketed by means of securitisation or sold. These often involve non-core or non-performing business activities. However, a popular option is to outsource the servicing of your financial products.

Marnix Uhl, Account Director at Vesting Finance: ‘Last year we acquired RNHB from FGH Bank (Rabobank). We now service the entire real estate portfolio. Last month we acquired a small portfolio from another party, consisting of 114 complex loans, worth a total of around 100 million euros. But we are also currently working with a bank to set up their end-to-end servicing platform for consumer credits. This servicing covers the entire process from acceptance of the credit to its full management.’

Providers consumer credit outsource backoffice

‘Following the reduction of the mortgage threshold in relation to the value of the house, also known as loan to value, we are finding that more financial parties are marketing consumer credit so that consumers borrow more alongside a mortgage. This is going to be a significant growth market in 2018,’ says De Boer. Often these are online labels, but all the servicing behind these labels is often done externally. Uhl continues: ‘Banks are generally more expensive when they use their own back office for servicing. They have relatively high costs and loan structure, while we can very easily upscale and downscale people according to the size of the portfolio we are servicing or acquiring. We can really offer custom work.’

Structural approach for socially responsible collection

Part of Financial Servicing is prevention, management and collection. The AFM Guideline ‘Consumers and Collection Procedures’ is also used and a general duty of care applies. De Boer: ‘The coalition agreement talks about a collection register and a structural approach to debt problems. Within Vesting Finance, we agree with the importance of such measures. In recent years we have consistently tried to take a more socially responsible approach to collection. For example, we use clearer language in our letters to consumers and we continue a dialogue for longer to prevent a visit from a bailiff. We also have our own representatives who visit consumers at home and give budget coaching and there’s a pilot with a debt support service.’

Continuous consumer dialogue - valued by clients

Uhl concludes: ‘We agree with clients in advance which trajectory should be followed to achieve a satisfactory conclusion. By continuing a dialogue with a consumer for longer and having more contact moments, Vesting Finance aims to enter into a payment schedule with the consumer which is good for both the consumer and the client. We are transparent in our services, clients appreciate our openness and we take our social responsibility seriously. That’s what distinguishes us.’

Sign up for our newsletter

How can we help you?

Would you like to know more about our services and how they can benefit your organisation?

Please contact us!