Home Credit, partner of Collectius to manage Indonesian NPLs

Jakarta. Consumer credit provider Home Credit Indonesia and digital debt collection platform Collectius have teamed up to handle 90,000 of Indonesia’s non-performing consumer loans, or NPLs, according to a recent press release.

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

“In these unprecedented and challenging times, we fully understand people’s struggle to cope with the pressure to survive, increased household responsibilities and the fear of mounting debt,” said Gustav A. Eriksson, CEO of Collectius Group, in a statement.

“By harnessing the power of technology, financial literacy and compassion, our goal is to help Indonesians overcome these challenges and improve their overall financial well-being,” he said.

Collectius is focused on modernizing the traditional debt management industry with technology.

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

This not only eases the debt burden of clients, but also provides them with advice on managing finances – which is necessary, 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%.

“Our partnership with Collectius helps us focus on improving our solutions for the benefit of our customers. Collectius has become our trusted partner with its state-of-the-art technology system that provides our customers with convenient, transparent and reliable experiences,” said Volker Giebitz, CFO of Home Credit Indonesia.

“It aligns with our goal and priority to always serve and provide security to our customers in accessing financial services,” Volker added.

According to the Collectius press release, it is a joint acquisition by the debt collection platform and the International Finance Corporation (IFC), the private sector arm of the World Bank.

The two parties partnered in 2020 to launch a $60 million Distressed Asset Recovery Platform Program (DARP) that focuses on acquiring and resolving distressed assets in emerging markets. Collectius said this program has helped many customers in the region meet their financial obligations and regain their creditworthiness.