Business model

Why PFG works

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.

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How we create value

1

We create value for customers by generating high satisfaction and loyalty.

We develop tailored products to meet customers’ needs

We focus on the UK credit market, developing simple, transparent products with flexibility to help customers not well served by mainstream lenders cope with life.

2

We create value for customers through offers of financial inclusion, and for colleagues and brokers through the income and commission they earn.

Develop tailored products to meet customers’ needs

We use many ways to reach consumers. We target our offers using increasingly digital methods, as well as face-to-face and partners such as field colleagues, agents and brokers.

3

We create value for customers by ensuring loans are appropriate to their situation, and thereby generate sustainable returns for shareholders.

We carefully assess customer affordability and creditworthiness

We use internal and external data, including face-to-face interactions, taking into account both the current situation and the likely future.

4

We create value for customers by helping them access credit, stay in control and build their credit score to improve future access and choice.

We lend responsibly

We tend to lend smaller amounts over shorter periods and take a ‘low and grow’ approach as customers demonstrate sustainability

5.1

We create value for customers by helping them minimise the impact of any difficulties in an understanding way.

We collect payments due

We tend to lend smaller amounts over shorter periods and take a ‘low and grow’ approach as customers demonstrate sustainability. Where a vehicle is held as security, we can lend more credit for a longer duration. We create value by helping customers enter or re-enter the credit market, stay in control and build credit scores for greater future access and choice. Our customers are no longer financially excluded from modern life, now or in the future. Our focus and specialised experience makes us better at helping customers on this journey than our direct competitors, and able to lend where mainstream lenders cannot.

5.2

We create value for customers by helping them stay on track and adapt to life’s challenges whilst building their credit score.

We manage arrears and customer difficulties

We establish early contact and an ongoing dialogue with customers who have difficulties, with a sympathetic approach, to understand and offer forbearance.