RESHAPINGUNSECUREDLENDINGDanieDuToit
CONTEXT
Ø Capfinhistoricalstructure:• Loansfundedbyexternalparty• Pepkorsuppliedservicesthrough
• SouthernViewFinanceSA(contactcentreandcredit)• VanAsandAssociates(debtcollection)• Pep&Ackermans(loanapplications)
Ø PepkorwillstartfundingCapfinloansfromApril2019• Toassumecompletecontrolovercustomercreditexperience,andsustainCapfin’sprofitcontributiontoPepkor• Capfinstrategyandoperationswillremainunchanged• Pepkorwillalsocontinuetocollectonexistingloanbook
Ø ThispresentationisabouttheintegratedCapfinbusiness
MakingyourbestlifepossiblethroughaCapfinloan.Reshapingunsecuredlending.Ourcustomer-firstapproachischangingthestoryofunsecuredlendinginSouthAfrica.
UNDERSTANDINGOURCUSTOMER
Ø Ourtypicalcustomerisunderpressure• Lowerendoftheincomespectrum(avg.R10.4kmonthly)• Workinghardtomoveforwardinlife
Ø Wehelpthembyoffering:• Creditthattheycanafford• Accessibilityandease• Exceptionalservice
Ø Ourloansaretypicallyusedfor:• Education• Unforeseenexpenseslikefuneralsorcaraccidents• Durableproducts• Regularhouseholdexpensesintimesofcrisis
Sheldon - ResilientSurvivalist
“Thankyouforthewayyoutreatedmeonyourside,IwilladvertiseCapfinalways.”
- CapfinCustomer
CAPFINATAGLANCE
Ø Company• Objective:profitthroughahealthyandgrowingbookofunsecuredloans(notretailcredit)• 960 employees
Ø CapfinLoans• FromR1000toR50000R4800averageloansize
• 3/6/12/24monthsrepaymentterms8monthsaverageloanterm
• 872thousandloansactivatedp.a.
Ø Debtor’sBook• 325thousandactivecustomers• R2.1billiongrossvalue
Ø Responsiblelender• Regulatedindustry,regulatedpricing• Trackrecordofcompliantandethicallendingpractices• Weactivate<30% ofnewcustomerapplications• Verylowvolumeofcomplaints(1in10000loans)
“WhatyousayiswhatIget.YourwordisyouhonourandthatwhatIlikeaboutyourcompanyitisoneofthefewinthecountrythatdoesn’tscampeoplethereforeIkeeponreturningtothecompany.”
- CapfinCustomer
SIMPLEPROCESS
RetailChannel▪ Pep▪ Ackermans▪ Other
MobileChannel▪ SMS▪ USSD
DigitalChannel▪ Webdirect▪ Digitalleadpartners
CustomScorecards▪ Applicationscorecard
▪ Behaviouralscorecard
DocumentChannels▪ DEA▪ Retailscan▪ Webupload▪ E-Mail▪ Fax
DocumentVetting▪ Agent(callcentre)▪ Automated
ProcessSteps1. Affordability2. Offer3. Contract
OriginationPlatforms▪ Callcentre-based▪ Onlineself-service
Tobankaccount*▪ 12%sameday▪ 32%nextday
LoanApplication
CentralCreditScoring
ProofofIncome
LoanOrigination
LoanDisbursement
CAPABILITIESANDSCALE
Ø Centralizedoperations• 1000-seat,award-winningcontactcentre• Centralizedcreditscoringanddecisioning• AgileITdevelopment,withteamofapproximately100• Locatedinsingle,customfacilityinKuilsrivier
Ø Custom-developedIP• Bespokecustomersegmentationmodel• Custom-builtscorecardsforshorttermunsecuredlending• Advancedanalyticsandcreditriskmanagement
Ø Strongcultureandemployeeengagement
WECOMPETETOWIN
Ø Industryandcompetition• Wecompetewithawiderangeofcreditproviders,includingbanks• Highlycompetitiveandregulated(NCA,DebiCheck,Popia)• Slow/negativegrowthinloanvolume,increaseinloanvalue
Ø Leadingmarketshareforloans2- to24months• Capfin16%ofloansactivated(Finbondclosestcompetitor)• Capfin18%invalueofloansactivated(Capitecclosestcompetitor)
Ø Ourfocusandpositioning• 100%focusedonshort-term,unsecuredlending• Fullserviceinallchannels• Endorsedbytrustedbrands
OURGROWTHSTRATEGY
Ø Vision:CapfinEverywhere
Ø Growthdrivers• Credit – continuetoevolveouroffering• Channels – expandourchannelswithafocusondigital• Partners – addstrategicdistributionpartners• Brand – buildatrustedbrand
Ø Howwewin• Exceptionalservice• Trustedbrand• Agreatcustomerexperiencethatcaterstoourtargetmarketsegments
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GrossDebtor'sBook
RECOGNITIONS
Ø BPESA/CCMGBestLargeCaptiveContactCentre• Multiplewinner(2015,2016,2018)
Ø SundayTimesTopBrands2018• Winnerinincategoryunsecuredlending