Sustainable and responsible credit lending – Resurs’s essential contribution to society
With 6 million customers in Resurs’s customer database comes a responsibility to conduct credit lending as responsibly as possible. Resurs wants to enhance the sustainable and responsible customer experience. Responsible credit lending is the core of Resurs’s business and involves a financial services offering that is sustainable both today and in the long term – for individuals, for Resurs and for society at large.
The option for private individuals to take out loans or use credits is essential for a well-functioning financial ecosystem and society. At the same time, as a creditor Resurs has a responsibility not to contribute to increasing over-indebtedness, which it addresses through measures such as credit assessments that ensure that customers do not borrow more than their personal finances allow.
Employees´skills are critical
Our employees’ skills are crucial to responsible credit lending. Their ability to grant credit is regulated at five authorisation levels linked to different amount limits, according to the logic that the higher the authorisation level, the greater the requirement for training and expertise. The internal training takes place on a continual basis. It is based on the Group’s credit policy, current legislation, Swedish Financial Supervisory Authority regulations and guidelines and instructions and criteria for credit lending.
A proactive effort to minimize credit risk
Clearly stated terms and easily accessible information are fundamental to ensuring that the customer understands what is in a loan agreement. Everyone loses when a case is transferred to a collection company. Both the customer and Resurs lose money, while Resurs suffers from damage to its brand.
The responsibility for credit lending lasts through the entire customer journey, from marketing to the loan being issued to the final repayment. For example, it might be a matter of how to deal with a customer experiencing payment problems due to a change in their life such as illness or divorce.
Resurs already continually tracks and analyses its customers’ risk profiles and contacts customers who have missed a payment, for example. Every market has several dedicated processors tasked with contacting, assisting, and informing customers who are behind on their payments.
Following up the Responsible Credit Lending process
Resurs continually follows up its responsible and sustainable credit lending process, as well as the company’s ability to assess customers’ repayment capacity. It does so by analysing the percentage of payment arrangements arrived at with customers who experienced payment difficulties, which they were subsequently able to manage.