Although the last part of 2008 and all 2009 have seen a dramatic slowdown of the market, the personal finance segment still remains one of the most active arenas in the financial world.This segment is effectively facing a multidirectional pressure: on one side, the demand for personal loans and revolving credits (including cards) is increasing, pushed by the liquidity effect of the crisis on the households, on the other side, traditional consumer credit and leasing is facing a stagnation period, linked to the breakdown in the consumption of the last period.
All players, and particularly the big pan-european ones, are now facing the need to conciliate at the same time an increasing liquidity demand combined with low rates and rising risks. Attention to the cost of the whole process, from pre- to post-sale, is a real issue. On the top of this, in many European countries, Regulators show a special attention to this sector, and a global rule may be not so far to come.
This scenario brings a brand new business model approach, in which innovation becomes a key factor as never before: Innovation in the products where service takes a dominant part compared to technology; Innovation in the distribution model where proximity with the customers is reached through non conventional channels; Innovation in marketing where a correct interpretation of customer experience may create a dramatic competitive advantage; Innovation in processes where clients want a top quality service at a minimum cost.
Last but not least, personal finance and leasing segment still show a consistent maturity gap within Europe, which puts decision making more complex for cross border players.
At EUROGROUP CONSULTING, we see our multi-local approach as an opportunity for managers who are facing global and local questions, as it happens for consumer lending. We count on a wide experience, based on many assignments in both broad and local players and in all the specific segment of this market