Aasa Group Presentation

Transcription

1 Aasa Group Presentation

2 AASA IN A NUTSHELL Aasa is an innovative digital finance company operating in Finland (2010), Poland (2012) and Sweden (2017). Aasa focuses on the sweet spot of any regular bank business consumer lending (installment loans to creditworthy population). Non-collateral loans of EUR ,000 are offered for up to 60 months. The concept of the operations is to use data driven decision making in all potential business processes (client acquisition, credit scoring, collection, etc). Our mission is to provide fast and convenient access to financial products and services with clear and transparent terms. We provide our products both on-line, as well as through traditional sales channels such as offline brokers. The company is running on its proprietary customer finance CRM platform. The world s leading system allows for fully automated client acquisition, credit decisions, logistics and collection process. Aasa has the region s leading credit scoring technology which has allowed to reach the market s leading low default rates of below 3% in Finland. Aasa has received high praise in the industry, including recognition from Loan Magazine Awards 2015, Laurel of Financial Intermediaries 2016 Award in the category of lending institutions in Poland, Installment loan provider of the year 2015 and 2016 and Business loan provider of the year The company is backed by private equity (Novator and Olympia) and a leading CEE mezzanine fund (partly financed by European Bank for Reconstruction and Development (EBRD)) We are not a pay-day lending business by beliefs nor design May 17 Launch of operations Sep 17 paid out loans EUR 2m 26k of active customers 1H17 paid out loans EUR 2m 1H17 loanbook EUR 69m 152k active customers 152k of active customers 1H17 paid out loans 38m EUR 1H17 paid out loans EUR 38m 1H17 1H17 loanbook loanbook EUR 47m 47mEUR GE Capital MBO JV. Operational launch in

3 AASA ORGANIZATION STRUCTURE Founders Novator Partners Aasa LuxCo InvestCo Mezzanine Management 51,1% 49,9% Olympia Development Supernova JV (Luxembourg) 100% 100% 100% 100% FIN Yritysrahoitus Oy SME loan provider (Finland) Aasa Polska S.A. (Poland) Aasa Kredit Svenska AB (Sweden) AS Aasa Global (Estonia) The same shareholders as Supernova. To be incorporated Q % 100% AA-Yleislaina OÜ (Finnish branch) Aasa Oy (Finland) STRONG BUSINESS CASE supported by large financial institutions In March 2014 Aasa Polska attracted EUR 15 million investment from Accession Mezzanine Capital III, an established CEE debt investor. Private equity investments Novator and Olympia owners of PLAY, Polish leading telecom with over 12 million users injected equity in Aasa Group becaming minority shareholder with 49.9% share. The equity of EUR 50 million invested to Supernova Group of which (i) EUR 24 million in Aasa Poland in June 2015 and (ii) EUR 20 million in Aasa Finland in September Combined equity investment of EUR 44m into Aasa Group Aasa Polska signed EUR 19 million revolving facility agreement with bank BZ WBK (Santander Group) and issued EUR 18 million of bonds to funds managed by Credit Value Investments. Funding providers Aasa Finland gained its funding through Front Capital, one of the leading nordic banks. Throughout the history raised EUR 65 million. 3

4 Aasa Global FINLAND

5 FINLAND - MANAGEMENT STATEMENT Aasa s business model is well established and tested in different markets. With our proprietary, fully automated lending platform and with our knowledge of predictive analytics and processes we can easily enter new markets and scale up rapidly. Kimmo Rytkönen CEO Aasa Global Aasa Global is international financial technology company established in 2011 in Estonia, acting in consumer credit business through it's Finnish subsidiaries Aasa Oy and AA-Yleislaina OÜ Finnish branch "Aasa Group". The core of our business is responsibility. As an innovative organization from FinTech area we are obliged to consider social issues as well as the interests of our customers, shareholders, associates and employees. This approach results in the ethical and transparent way of conducting our business. We do respect the enforced legislation. We meet all formal requirements and implement the principles of responsible lending. Strategy We are constantly seeking for new business opportunities by developing new innovative financing solutions and products. We will continue to serve customers and small entrepreneurs with digital offering as well as the through the traditional distribution channels. Responsible lending We have a transparent rules of providing loans. We offer responsible credit only to bankable customers through streamlined processes and state-of-the-art technology. Our sophisticated credit scoring models allow us to build a quality loan portfolio. We offer instalment loans usually for a period of 10 to 24 months. We do not operate in payday-lending segments. Aasa s business model is well established and tested in different markets. With our proprietary, fully automated lending platform and with our knowledge of predictive analytics and processes we can easily enter new markets and scale up rapidly. Regardless of the market where we are operating on, our most valuable assets are our clients. The common goal of Aasa Group is to service our clients by offering them financial support and assistance where banks are not fast or flexible enough. In all of its activities, Consolidation Group is governed by the rules developed by the European Coalition for Responsible Credit (ECRC), the fair lending principle and the current legal regulations and consumer protection laws. Kimmo Rytkönen CEO Aasa Global 5

6 FINLAND KEY ACHIEVEMENTS M17 1Q M17 1Q17 We sent 1,645k 352k queries to credit bureaus Analysed 1,027k 250k loan applications 146.9k 131.6k 152.1k 150.6k M17 1Q M17 1Q17 We paid out 160k loans 30k 25.4k 16.5k worth 75m EUR 77.6m EUR EUR 19m 46.2m EUR FINLAND CLIENT AQUISITION PROESS ON-LINE AFFILIATE WEBSITE TRANSFER LOAN AGREEMENT (E MAIL /WEBSITE) ON-LINE Scoring Loan offer 6

7 Aasa Polska SA POLAND

8 POLAND - MANAGEMENT STATEMENT For me, it is essential to provide professional financial support and assistance to our clients, following a policy of responsibility and highest ethical standards. Ovais Siddiqui Country Manager Aasa Polska At Aasa, an innovative company in the FinTech industry, we are committed to ensure transparency, speed, simplicity and safety of our business model. The core of our business is responsibility. As an innovative organization from FinTech area we are obliged to consider social issues as well as the interests of our customers, shareholders, associates and employees. This approach results in the ethical and transparent way of conducting our business while respecting the legislative environment. We meet all formal requirements and implement the principles of responsible lending. Strategy As part of Aasa Group, we are constantly seeking for new business opportunities by developing new innovative financing solutions and products. We will continue to serve customers and small entrepreneurs with digital offering as well as the through the traditional distribution channels. Responsible lending We have a transparent rules of providing loans. We offer responsible credit only to bankable customers through streamlined processes and state-of-the-art technology. Our sophisticated credit scoring models allow to us to build a quality loan portfolio. We offer instalment loans usually for a period of 10 to 24 months. We do not operate in payday, or single payment loan lending segments. We are committed to developing small businesses and the local economy by offering specific products for small and medium-sized enterprises that have registered business in Poland and are not listed in the registry of debtors (BIG). During first half of 2017 Aasa Polska granted over 59 thousands loans worth more than PLN 164 million, which translates into 6.3% year on year growth of granted loans value. Partnership in business We care about the quality of cooperation with our partners. We cooperate with the top business associations and organizations in Poland. We work on the Principles of Good Practice Book concerning sales of credit products together with the Conference of Financial Companies in Poland (KPF) and affiliated companies. Corporate Responsibility Responding to the needs of our customers we had decided to launch an educational campaign on Digital Exclusion, which is an important social problem in Poland, where 9 million people over the age of 50 do not use the internet, and every third Pole is digitally excluded. We feel that this area is of specific importance to enable individuals to manage in a changing society, to ensure that they can continue to make use of goods and services migrating to digital channels and utilise the tools available to help improve their quality of life. We believe that Aasa Polska is in a strong position to help through educational programmes, our expertise and the technology available to us. Ovais Siddiqui Country Manager Aasa Polska 8

9 POLAND KEY ACHIEVEMENTS M17 1Q M17 1Q17 We sent 1,645k 352k queries to credit bureaus Analysed 1,027k 250k loan applications 1.6m 633k 1m 500k M17 1Q M17 1Q17 We paid out 160k loans 59k 30k worth 75m PLN 319m EUR PLN 19m 164mEUR POLAND CLIENT AQUISITION PROCESS OFF-LINE AGENT BROKER PUBLISHER AFFILIATE ON-LINE DIRECT TRAFFIC WHITE LABEL Transfer Express transfer Giro check ONLINE SIGNATURE COURIER AGENT AGREEMENT AGREEMENT LOAN AGREEMEN T ON-LINE OFF-LINE Scoring Loan offer 9

10 Aasa Kredit Svenska AB SWEDEN

11 LOW REJECTION RATE HIGH Aasa has FSA license in Sweden from February 2017 and operates from May Swedish loans are guaranteed by Supernova Group, holding other Aasa brands, with over 50m EUR equity. It makes the Group one of the most well capitalized non bank lender in the region. Group has attracted senior loans from banks, institutional investors and bonds outstanding more than 115m EUR. Aasa Kredit Svenska AB is planned to be incorporated into Supernova structure at the end of MARKET POSITIONING Aasa operates in non-bank consumer finance sector which is a subset of a larger consumer finance segment. Aasa place in the market is between banks and pay-day lenders. Aasa is aiming to obtain clients who either do not qualify for banking products or whose creditworthiness is good enough to escape from pay-day lenders. BANKS credit cards consumer credit Credit risk manager as solid as a bank, proces and reach to market as NON bank NON-BANKS LENDERS pay-day industry for example Vivus, Ferratum, Monetti 25-40% 40-50% APR % 11

12 CLIENT AQUISITION PROCESS ON-LINE AFFILIATE WEBSITE TRANSFER LOAN AGREEMENT (E MAIL /WEBSITE) ON-LINE Scoring Loan offer 12 NUMBER OF ACTIVE CUSTOMERS 12

13 Group Risk Management

14 SCORING NPL AND CL MODE AASA Group follows a very detailed and disciplined credit scoring procedure involving clients checks with debtors registers, Credit Information Bureau and Big Data Scoring. The scoring model is validated and revised on a regular basis. Different customer groups are classified according to specific scorecards: - New and returning customers - Distribution channels *Examples SCORING BIG DATA In addition to traditional data sources such as credit bureau, loan application and returning customer behavior, Aasa is also taking advantage of big data to further improve the accuracy of the scorecards. The solution developed by the group company Big Data Scoring collects additional 3,000-5,000 data points per each consumer from tens of different sources, making the overall scoring more accurate. 14

15 Corporate Social Responsibility

16 RESPONSIBILITY IS A CORE OF OUR BUSINESS As an innovative organization from FinTech area we feel obliged to consider social issues as well as the interests of our customers, associates and employees. This approach results in the ethical and transparent way of conducting our business. We do respect the enforced legislation. We meet all formal requirements and implement the principles of responsible lending. We contribute in the promotion of high standards of responsible lending. We are a reliable business partner. We support the development of innovation in every market we operate. We take care for our employees satisfaction and development. Excellent corporate and work culture are the highest priority for us. CERTIFICATES OF GOOD PRACTICES IN POLAND Responsible In Business Certificate Since 2015 Aasa Polska has been holding the Responsible In Business Certificate, awarded by the ERIF Economic Information Bureau to companies and institutions that actively support building of integrity and accountability among market participants. The certificate confirms that Aasa is a trustworthy partner who cares about its customers, provides services in a responsible way, cares about the contracts and transactions protection and ensures the security of personal data. Certificate of Ethics Aasa Polska has successfully passed the ethics audit carried out by the Ethics Commission at the Conference of Financial Companies in Poland (KPF) in terms of adherence to the Principles of Good Practice (PGP) in its business practices relating to the sale of credit products. Hence Aasa has obtained the Certificate of Ethics (valid until 31 March 2018), which confirms that the company is a responsible lender, respecting consumer rights and protecting personal data. Principles of Good Practice Book We work on the Principles of Good Practice Book concerning sales of credit products together with the Conference of Financial Companies in Poland (KPF) and affiliated companies. It is a set of responsible lending rules, dedicated to loan institutions in Poland, consulted with the Ministry of Finance and the Financial Supervision Authority. The book includes, among others, recommendations relating to the principles of advertising credit products and information on complaint procedure. It also points out not permitted practices. 16

17 STRATEGIC APPROACH To determine the direction of our Corporate Social Responsibility strategy we carried out 3 opinion surveys among: employees, customers, agents & brokers. In their opinion: The target group of Aasa CSR activities should be: 1. families (25%) 2. elderly people (23%) Aasa could get involved in such CSR areas as: 1. family life (23%) 2. education (17%) Aasa should conduct following activities: 1. educational campaign (22%) 2. purchase of equipment (19%) KEY CUSTOMER TO SUPPORT This is the key target group of our CSR campaign It s a woman (61 %) Aged (36%) and above 56 years old (41%) Usually has vocational or secondary education Source: Customer profile based on CRM data. Analysed period :

18 WHO WE ARE AND WHERE WE GO Aasa is a financial company of XXI century, based on innovativeness, transparency, promptness, simplicity and safety. Our mission is to provide fast and convenient access to financial products and services. Aasa as a fin-tech company is in constant movement we are keeping people moving forward and we care about our clients and the development of the financial market. Aasa comes from Estonia and Finland the leading digitization countries in Europe. The company strategy is to develop online sales channels. The business long-term goal is to encourage customers to use more online channels. A BIG IDEA FOR AASA CSR To prevent DIGITAL EXCLUSION among women in Poland and give them tools to acquire or improve their digital skills Why Digital Exclusion is our CSR campaign subject? It corresponds with our customers current needs and expectations, according to three opinion surveys among customers, brokers, agents and employees. It is in line with Aasa values and long term strategy. It is an important social problem in Poland where over 9 million people over the age of 50 do not use the Internet, and every third Pole is digital illiterate. Age is one of the factors underlying digital exclusion - eldery people are least likely to use the Internet in Poland. It will strengthen our company's position as a reliable expert from fin-tech sector who cares about its customers as well as development of modern society in Poland. How can Aasa help to prevent Digital Exclusion in Poland? We can share our know-how on why using new technologies is so important today and become an educator and opinion leader by: Raising the awareness of digital exclusion amongst the public through the media and social media Reaching out to individuals to help them improve their life chances and contact with relatives through technology Promoting the transformative effect that the internet can have on people s lives Engaging experts in digital from the private, public and NGO sector to work 18 together to help disadvantaged people benefit from the new technologies 18

19 TARGET GROUP OF AASA CSR CAMPAIGN Particular focus is given to digital illiterate women aged 45 to 70 who are both digitally and socially excluded. What about men and younger generations? They are also engaged - their role is to encourage their mothers, grandmothers, sisters and aunts to take part in the campaign in order to improve their digital skills. We also engaged our employees, partners and experts in the campaign. AasyNetu* CSR CAMPAIGN 1. Launch of aaasynetu.pl educational platform: - Online Digital Skills Workshops for women over 45 who have low digital skills to help them improve it thanks to our educational movies and infographics. - Online Contest with prizes for those who take part in the workshops. 2. Engaging our employees in the campaign: Marek shared his knowledge in educational movies. Przemek played the role of a student in the promotional video. Maja also appeared here as a granddaughter. *Aces of Internet 19

20 AasyNetu CSR CAMPAIGN 3. Public opinion survey on Digital Exclusion among women between 45 and 70 - Conducting nationwide opinion survey in cooperation renowned research institute TNS Kantar about women experiences and barriers in using Internet - Preparing Aasa Report on Digitally Excluded Poles in Dispatching its results to the media and arranging interviews with Aasa Polska CEO 4. Engaging partners, experts and influencers: - Cooperation with famous Polish sociologists and psychologists who commented the survey results in the media - Partnership with Responsible Business Forum in Poland and Conference of Financial Companies in Poland - Media sponsorship on the news portal for elderly people Glos seniora CSR CAMPAIGN RESULTS SO FAR* Total Media Coverage in Poland since the start of the campaign on 20 June: 358 clippings (335 online, 2 in radio and 22 in print) Advertising Value Equivalent: PLN 918,228 vs. cost of the campaign: PLN 50, *The campaign started on 20 June and will last till the end of

21 Aasa Global AS Laeva 2 Tallinn Estonia Aasa OY / Aasa Yleislaina Hiomotie Helsinki Finland Aasa Polska SA Hrubieszowska Warszawa Poland Aasa Kredit Svenska AB Sankt Eriksgatan Stockholm Sweden