Consumer Credit

A disparate global market

With outstanding loans of 5,600 billion euros at the end of 2011, the global market is marked by significant disparities between continents:

  • North America accounts for 39% of global outstanding loans, primarily in the United States and Canada.
  • Asia and the Middle East (29%) represent the second-largest region, well ahead of Europe (23%).

However, gaps are narrowing due to the strong growth of emerging markets. The proportion of loans in the five largest countries (United States, Japan, Canada, United Kingdom and Germany) has fallen from 76% to 60% in the space of three years.

A market subject to severe constraints

Consumer credit has been experiencing difficult times since the subprime crisis and the strengthening of consumer protection laws: the number of subscriptions for revolving credit and personal loans has been decreasing along with the average amount of lending.

In Europe in particular, institutions involved in consumer credit must be able to meet complex requirements, such as:

  • Offering increasingly innovative products that meet legal requirements and that must be taken to market quickly via all existing or future distribution channels
  • Analysing risk in as much detail as possible, in order to provide clients with lending solutions associated with a measurable (and measured) risk.
  • Anticipating problems and managing contracts by allowing modification of existing contracts and thus limit delinquency, loan default and the use of debt commissions.

Linedata’s offer at the heart of the business strategy

Linedata supports you in taking on new challenges with the Linedata Ekip 360 software package and its Distribution and Management systems.

Thanks to the extent of our solution, you can offer your customers lending solutions tailored to their needs, including traditional lending, revolving credit, and purchase of receivables (consolidation).

The strength of our software solution lies in the completeness and detail of the features we provide, which allow you to ensure the Distribution and Management not only of your products but also those of your partners on behalf of whom you manage accounts.

Front/Middle-Office

The Front-Office module of our software package allows you to:

  • manage all contract-granting and risk assessment stages due to:
    • the option to request information from the CRM, internal or external decision-making systems, public or private credit rating agencies, or systems checking bank account details and addresses.
    • the integration of an external workflow system
  • provide your sellers with a sales support tool that allows them to offer package offers to clients in a single transaction, such as:
    • a personal loan
    • a fixed, variable or indexed-rate cash supply
    • services like an End-of-Month (EOM) deferred-debit card
    • a set of dedicated lending facilities (e.g. promotional offers) such as equal monthly instalments with or without credit charges, “n” first months free etc.
  • adjust your pricing to the:
    • type of client (professional, civil servant…) and his/her requests (amount, duration, frequency…)
    • distribution network’s delegation rules, whether for standard or promotional offers, as part of dedicated lending or not, with a single or double reserve…
    • direct marketing operations
  • Offer the option to purchase internal or external receivables in the form of a personal loan or a revolving credit by initiating all additional operations (early repayment, accounting entries, accounting adjustment…)
  • Provide sellers, sales managers, point of sale and network managers with customised portfolio monitoring.
Back-Office

The diversity of our back-office solution gives you a lot of flexibility in your day-to-day contract management:

  • When managing payments falling due, for example, you can choose to group instalments by contract or by line of credit within the contract.
  • When managing payments you can settle a due payment by withdrawing money from an account or, when debiting the payment, configure the payment allocation order between the different credit lines as well as between the capital, interest and services…
  • Our solution provides a wide range of personal loan amendments (contract renegotiation, full or partial repayment etc.) and revolving credit amendments (credit limit modification, delinquency settlement, amount carryover, transfer of a credit line balance to another…)
  • Separate management of late payments can be managed based on the contract or customer situation, and procedures can be defined due to the embedded workflow. It is also possible to use rescheduling and renegotiation functions with the reintroduction of unpaid invoices, deferment of instalments…
  • You can also identify, as part of revolving credit contracts, all inactive lines, contracts or settled contracts.