Business Model

The group is successful in lending to customers whom others find it difficult to serve because of the way we manage the customer relationship and the solid foundations that we have built for our business.

WE LEND TO CUSTOMERS WHOM OTHERS FIND IT
DIFFICULT TO SERVE

  • 10m people in the non-standard market
  • Often overlooked by high street banks and mainstream
  • Modest incomes are more likely to face financial uncertainties lenders
  • Complex and changeable financial and social situations
  • Looking for reliability, control, flexibility and certainty

WE MANAGE THE INHERENT RISK OF NON-STANDARD
LENDING BETTER THAN OTHERS

Our approach is highly adapted to our market: high contact, close attention to lending and collecting activities and simple, flexible products

    Relationship

  • Social investment Playing a positive role in the communities we serve Spending 1% of profit before tax
  • Establish personal contact from the outset and throughout Welcome call or home visit
  • We treat customers as individuals and understand them better Customer satisfaction of between 84% and 91%
  • Individual and personal assessment 500 contact centre staff and 10,500 agents

Lending & collection

  • Flexibility where it is neededNo charge for missing a Home Credit repayment
  • ‘Low and grow’ approach to responsible lending Vanquis starting credit limit £250. Home Credit lends £50 and upwards
  • Selective lending and conservative credit criteria We only approve around 20% of new applications

Product

  • Priced appropriately and transparently Our customers say we are open about fees and that we treat them fairly
  • Cash or easily converted to cash Our customers say we offer products that meet their needs
  • Simple products that people understand and trust Our customers say we are straightforward and trustworthy

WE UNDERPIN OUR BUSINESS WITH SOLID FOUNDATIONS

The nature of our business requires resilient, conservative and flexible business fundamentals

  • Diverse funding sources
  • Borrowing long and lending short
  • Focus on high return on equity, cash and capital-generative businesses
  • Conservative accounting
  • Organic growth focus
  • 130 years of experience
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