Credit Management June 2018

INTERVIEW
AUTHOR – SEAN FEAST
attracted by the international challenge
and bringing the business together.”
It was a similar intrigue that ultimately
led to his joining Hoist Finance: “I had
met Jorgen (the previous CEO) on several
occasions and it was clear that we shared
similar thoughts on the importance of
culture, values, ethics, compliance and
regulation. He was very visionary and entrepreneurial.
My challenge now is continuing
to grow the business and ensure
we have the processes and structure to accommodate
future growth without losing
momentum. Growth is our number one
ambition, so we need to focus on operational
excellence and ensure our strategies
are aligned throughout the business.”
Klaus-Anders has been quick to put
his personal stamp on the business,
explaining his vision to the team across
Europe in a series of ‘town hall’ meetings
and canteen lunches. His views on credit
are refreshing: “What we do is important,”
he explains. “Without credit, growth stops
and transactions don’t take place. If credit
defaults and creditors are not paid, then
trust in the system breaks down, so while
our clients are important, the relationship
with our customers is perhaps even more
so.”
PAN-EUROPEAN COMPARISONS
Being pan-European, Klaus-Anders is able
to compare and contrast the experiences
of different consumer types and their
attitudes towards credit: “Whether you
are talking to a consumer in Duisburg
or Milton Keynes, most people want
to repay their debts and honour their
commitments. Our role is to help them
and motivate them to achieve that and
return to financial health.”
In terms of how he intends to deliver
on his vision, the new CEO tells me of a
story recently published in the Guardian
newspaper about the success of the
Norwegian Alpine Skiing team and its
‘no jerks’ policy: “One reason they are
so successful is that although it is an
individual sport, they help each other, and
try and learn from each other, working
as a team. They won’t tolerate jerks, and
that’s why they win!”
Klaus-Anders is keen to see the same
concept of ‘sharing’ knowledge and
experience throughout the group as a
key ingredient to success. A good idea in
Germany, he believes, will be a good idea
in the UK or Spain. “The challenge is in
knowing what we know,” he explains, “and
then documenting it so that everyone can
benefit.”
His views on the pan-European market
for debt sale and purchase are especially
interesting. While the UK is a mature
market, he sees this as an advantage: “The
UK is mature, professional, sophisticated
and highly regulated, and I expect the
other markets to follow which will be
a good thing,” he explains. “I welcome
regulation as a friend; it raises the bar and
means that the thresholds for entering the
market are higher.
“I like mature markets,” he continues.
“They are rational and competitive, and
the risk/reward is positive. We are also
looking at new and less mature markets
like Italy (Intrum recently completed a
large deal in Italy), Spain and Greece.
In Spain, the unemployment numbers
are coming down, but at 16 percent,
Spain is still a laggard. At the peak of
the crisis, 40 percent of those under 30
were unemployed. Although things are
improving, the crisis is not resolved. In
Greece, too, they are enjoying a recovery
and we are early to the market through a
partnership and now our own platform,
so that too is exciting.”
In terms of portfolio types, Klaus-
Anders quashes previous discussions that
may have been aired about diversifying
into different markets. “Our core strength
is the banks and being a bank ourselves
we have a better understanding of how
the banks’ agendas can move, and what
we need to do to add value. A specialist
will beat a generalist every time; focus is
good. Focusing on a few markets and one
customer group is our mission – to have
wider products and deeper penetration.”
ASSET CLASSES
While Klaus-Anders rules out acquiring
non-banking portfolios, he does not rule
out extending the asset-classes of interest.
Whereas traditionally Hoist Finance
has focused on non-performing loans,
it recently acquired its first portfolio of
commercial mortgage loans and is looking
at what he describes as ‘adjacent’ asset
classes such as SMEs, secured loans and
other paying/performing assets. Servicing
also remains key: “We like our business
model,” he laughs, “and have access to
very efficient funding. It is good to be
regulated to the same level as the banks
and investors are happy with our healthy
balance sheet.”
The new CEO is perhaps conscious that
previous roles have not lasted as long as
he originally envisaged. It is with some
hesitation, therefore, that I ask him where
he sees the business in three years’ time
and what success will look like: “Success
will be when we are one of the big five and
have a reputation as a reliable, innovative
partner with a culture, values and beliefs
that stand out. Success will also come by
being a leader in the digital space, not just
in how we interact with our customers,
but also in how we use data.
“All of us talk about the volume of data
we hold, but actually what is important is
using that data to gain knowledge, from
knowledge we gain insight, and from
insight we deliver action.”
Given his naval background, it is
perhaps unsurprising that he owns a boat
and a second home on the coast which he
shares with his spouse Maria – when they
are together: “She is the CEO of DEA AG,
an oil and gas major based in Hamburg,
so we FaceTime during the week and see
each other at weekends,” he says.
As well as four grown-up children
between them, they also have joint
custody of a 14-year old Norwegian Forest
Cat called Nemi. “Everybody asks about
the cat,” he laughs. “It is very much part
of the family.”
The Recognised Standard / www.cicm.com / June 2018 / PAGE 15