What in your opinion, the main trends of development of factoring market in I half of 2008? - At the end of 2007 - the first half of 2008, the market participants have embarked on a rethinking of risk. Factoring is a very long time worked in such conditions where the risks are not realized: even the bad debtors found the means to repay the debt. In late 2007, this situation has changed, we are in the very beginning of massive defaults of debtors in various financial and credit products, and therefore redefining risk is essential. The level of risk tolerance for companies declined, while factoring in financing the growth risks become more severe, so there is some decrease in volumes and growth rates for factoring services especially for small and medium-sized businesses. How customers are increasing rates of factoring? If before working with a regional trade network, the risks that were higher than those of large retailers in Moscow, we were faced with lack of understanding of price increase, but now the difference in 5 PP is seen normally. Companies realize that if we are in their business is something embarrassing, the rate will be higher, it charges a higher risk, implementation of which becomes more likely in the current environment. Will the change in approaches to risk assessment on the quality of its customer base? In the current environment when considering the client factor comes more crucial. If before a slight deflection on quality customer growth offset some of the prices of factoring, but now the client does not meet the requirements of the Factor is more likely to receive a waiver - factoring companies are trying to work with higher-quality portfolio. What events would you react to a number of major successes of the factoring division of your bank in the I half of 2008? We grew up the same pace as before: about 200% per year. Our main market - it's retail chains, the awareness of our customers the benefits of factoring can also be attributed to our success. A cut that we have built a quality system of risk management, which allows us time to track deterioration of the debtor and to refuse to work with them if their situation is below an acceptable level. Was there any factors limiting the growth of your business in the first half of 2008? Highlight the factors that had a strong negative influence, it is difficult, rather we can say that we are facing in their work with the decision of the various working moments, this is a normal process. The only thing we can note the low level of development and the high cost of infrastructure in the regions with which we face in our regional development. In the regions with the volume of business is ten times lower than in Moscow, fixed costs are almost the same as in Moscow. Increases labor costs, very high cost of office space. This leads to the fact that the price is factoring in the regions becomes inadequate, and self-development of the regions is very expensive. The development of factoring in the regions occurs simultaneously with the development of the banking network Metallinvestbank? We separate from our bank's regional network of factoring. Our client base by factoring in the 90% does not meet the bank's client base. The Bank is trying to get in those regions where large companies are working, or there is potential demand for banking services among the population. A factoring division is more interested in small and medium businesses. In addition, we draw attention to the work in the regions of large retailers, who believe themselves to driver development, that is, we enter into new regions follow their debtors. When we understand that working in the region 3.5 of our major customer, raising the question of opening in this region of our representation. Representation in the region serves as our current customers and is actively attracting new customers. However, we do not pursue the goal of simply expanding the network of up to 80 regions, opening a new office occurs only in the presence of its necessity. Which the assessment of risks in the region? No, the risk management system we have a centralized one. What is in the current situation of funding factoring business? Has the change in funding costs on the price of factoring services for your clients? In the current environment, funding for the factoring company has become more limited, raising funds on financial markets are now faced with a significant increase in the cost of resources. The banks financing opportunities much more: Bank loans, funds from the public and corporate clients. In addition, banks are now regarded by investors as less risky borrowers, compared with the specialized factoring digging because the banking market is controlled by regulators. If we compare banks and factoring companies for the same amount of total assets, the structure of assets and liabilities to be committed is different, the bank will have more opportunities to finance their activities. In a situation of crisis in the stock market, investors' risk tolerance decreases, the funds flowing into less risky instruments - they are absorbed into the bank deposits of physical persons and legal entities, the bank is perceived as a "safe haven" in a strong stock market volatility. In this situation, factoring companies, is actively being used to finance bond issues, faced with their placement. Banks are in a situation of excess liquidity, they are growing opportunities for financing their clients. Central Bank of Russia has made great efforts to expand opportunities of banks financed by the Central Bank. Financing factoring in the bank - one of the possible uses of available resources. How the crisis is an internal reallocation of resources, factoring division receives funding sufficient? For the Bank in the allocation of domestic resources factoring is quite attractive. We finance ceded receivables mostly small and medium businesses, but at the same time dealing with the risks sufficiently large debtors. In this situation, the credit risk of the buyer is higher than the credit risk of the debtor. As a result, we allow the client to obtain financing at lower than commercial lending, knowing that incur relatively lower risk of default of the debtor. It is obvious that lending directly to commercial network less profitable operation than the provision of finance to the supplier for which this network is the debtor. Therefore, the bank factoring unit receives its funding to the extent necessary. During the liquidity problems in the Russian market clients of factoring companies have been forced to raise to finance other factors. How serious redistribution of the customer base, is updated if the database is your company? What is now more conducive to raising customer loyalty? Yes, indeed, we have new customers who previously served by other factors. And the influx of customers has become more active in comparison with previous periods. Change factors are associated usually with a significant appreciation of the value of services or the fact that factor can not fund the client. For our clients the advantage of factoring in our bank is also quite obvious. First, in current circumstances, it is much more profitable than lending to small and medium businesses, where rates have increased greatly, and secondly, the prices for factoring services from banks is lower than that of the specialized factoring companies, because of cheaper resources to finance . In this case, we pay careful attention to risk analysis and do not seek to actively build up a portfolio to the detriment of its quality, as it happens, do specialized factoring company. Thus, we compete with only a few banks and clearly understand our advantages: if the bank is a competitor offers factoring to work with a large retail network, we can work with tents in the metro, and small shops, but would be carried out appropriate risk assessment and change price conditions. If a client comes to us, who used to use factoring, but worked with a specialized company that is enough for him to calculate the cost of the services of our bank so he could compare their costs of factoring for us and specialized factors. The advantage is on our side. What else, other than price may affect customer loyalty? Service and convenience. When a client works with the factors that occur almost complete duplication of client accounting and related documentation that requires some effort, not only by the factors, but also from the client. If the procedure of interaction convenient for customers, factoring financing is important for the client, it must be very good reasons for the change factor. In these circumstances, as a rule, is to stop the financing of the factor. Do you think it is possible in this year's expected purchase transactions and sale of the factoring portfolio? No Does your company plan to participate in such transactions? I think not. We participate in such transactions will not. Analysis of the portfolio of another factor is extremely costly and time consuming. In addition, good debts are unlikely to sell, and evaluate the quality of the portfolio and its cost - not an easy task. Perhaps the bad portfolios Factors interested in collection agencies, but the issue price will be even higher than the assignment of the collectors of portfolios of consumer loans. Are you working with insurance companies on insurance risk of default of the debtor, in the part of insurance against the risk of fraud in factoring transactions? No, do not work. We have been trying to work, but insurance companies in their approach to risk analysis. We assessed the risk and have identified a portfolio of different customer groups: low, moderate or high risk. Now, in times of crisis, the bank operates at 95% with low risk. And the insurance company in risk assessment looks at our portfolio of purchased receivables, considers it in the same portfolio of factoring company with completely different risk and in accordance with that formulates a proposal for an insurance premium. Relatively speaking, we come to the insurer asking for car insurance of the middle class, usually parked at the guarded parking lot, and from them we offer insurance of cars at this price, as insurance premium cars parked in the criminal area. Therefore, to insure the portfolio can be, but the price will be high while insurers are not interested in insuring only the "bad" clients is important for them to have a risk sharing. How do you think you can evaluate the effectiveness of risk management systems? The share of delinquency. When we have improved risk-management system, monitors the proportion of outstanding debt. Factoring is good that this is a very specific product statistics accumulated very quickly: after making innovation effect is noticeable within a month. And if we talk about the efficiency of IT-systems? IT-system must be resilient to a significant increase in the processed information. If malfunctions occur once a year, then that is fine, if every week - is bad. In addition, the system must keep track of errors committed by personnel. A critical factor for us - the possibility of rapid changes. If we work in a highly competitive market, any marketing approach should quickly be reflected in the IT-platform. Our IT-software is flexible enough, because we work with a program developed by our specialists. How flexible software products created for the factors in Western markets is uncertain, perhaps in spite of their high cost, they do not allow the system to adjust quickly change the product line. Thank you for participating in the study!
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