Business Lines

In line with the One Hoist Finance startegy set in 2018, Hoist Finance has three Centres of Excellence (CoE). One for unsecured assets, one for secured assets and one for performing assets. The purpose of these three CoE's is to ensure that the company harmonises and standardises processes across markets and share best practices in an efficient way. As of 1 January 2021, the CoE's have been integrated in to the following business lines:

  • Secured non-performing loans

The Secured business line is end to end responsible for the Secured NPL business. The business line works together with the countries to formulate our strategy, deliver on our budgets and to develop the Secured Assets Business in Hoist Finance. The Secured business line will work together with the functions and other business lines to maximixe the value creation. The current Center of Excellence for Secured becomes an integrated part of the Secured Assets Business Line.

  • Digital (unsecured non-performing loans)

The Digital business line is end to end responsible for the unsecured NPL business. The Digital business line drives the transformation from analog to digital debt resolution and works with countries, other business lines and the functions to make and maintain Hoist Finance the digital leader in our industry. The Digitial business line will have important resources such as:

- Omni channel and customer portals
- Analytics and BI
- Digital customer experience
- Digital service delivery
- Innovation
- Digital performance
- Core IT (infrastructure, application management)

  • Retail Banking (performing loans)

The Retail Banking and Business Development business line is responsible for all Performing Loan portfolios and for all banking products that we offer our customers. The Retail Banking business line is also responsible for our deposit taking through Hoist Spar. Through product development, we can find ways to help our customers with banking products they otherwise would struggle to find given their limited credit worthiness. This business line is important for Hoist Finance as it creates sustainable competitive advantage, broadens the range of solutions we can offer customers as well as diversifies and differentiates our business and emphasises our customer focus. The current Center of Excellence for Performing Loans becomes an integrated part of the Retail Banking business line.

  • Contact Centre Operations

Our contact center operation is the most important customer channel at the moment, and will continue to be very important going forward. Our omni-channel approach is instrumental for the customer journey. Hence, the Contact Center Operations business line will need to focus on how to work with the other business lines, develop best practice, operate as effective and efficient as possible and become the natural benchmark in our industry. This business line can be seen as the internal provider of contact center services to the other business lines. The current Center of Excellence for Unsecured becomes an integrated part of the Contact Centre Operations business line.

Progress of Centres of Excellence in 2020

Unsecured Centre of Excellence

  • Rules engine

During 2020 we have worked on our tone of voice with the objective to establish a more accessible language, improving the customer experience. We have developed a stronger customer engagement strategy that allows us to know which customer to contact, through what channel and when. This approach has been delivered through current systems in all markets however consistent application will be delivered through the implementation of a common data-driven and automated Rules Engine technology in all markets.

The Rules Engine determines on a daily basis the next best action for each of our customers. It selects which customers we want to contact, through what channel and with what message. It also determines which customers to move into specific processes such as litigation and field collection. The Rules Engine puts data at the centre of these decisions and allows us to run concurrent tests to optimise our collection performance.

First market to go live on this new system in the second half of 2020 was Germany where we were able to report early positive results across amicable processes. UK went live in January 2021 incorporating both amicable and litigation strategies. France will go live in the first quarter of 2021, with BeNe, Spain and Poland planned throughout the remainder of 2021.   

  • Skip tracing

It is not possible to initiate an amicable settlement if we cannot get in touch with the customer. When we buy a portfolio we often inherit outdated contact details. This year we have looked at ways to improve our customer engagement levels by improving the quality of our customer contact data such as phone number and e-mails address. We have performed trials with new data suppliers across several markets, agreed on a common approach to invalidating existing contact details and triggering trace activities. We are also in the final stages of adding additional manual resources in our nearshoring operations for fallout from automated processes in relation to this task. 

  • Contact Centre Excellence

In line with our ambition to develop top class omni-channel Contact Centres, we are mid-way through a programme of transformational activities, which affect all our internal contact driven operations.  We are harmonising approaches to coaching and leadership in these areas, with a significant development programme called High Performing Teams delivered in three markets, in progress in three more, with the remainder to commence in the first quarter of 2021. This will have a major impact on conversion and kept rate performances, as well as on colleague engagement ratings.  We also made great strides in the application of sophisticated Contact Centre workforce optimisation in conjunction with our technical partner Aspect, as well as a transformed approach to KPI development and usage across all markets.

  • Digital 

Several digital solutions have been created using experiences and expertise from the Unsecured CoE. Read about them here.

Man writing in front of screen

Secured Centre of Excellence

The CoE Secured has developed a unified culture and mind-set within the group and within our two main secured markets, France and Italy.

  • Common practice 

In an effort to bring Hoist Finance's vision and mission into our approach to customer relationship management, we have reviewed the process and communication between our Secured Loan Asset Managers and our customers, and analysed what has been common challenges as well as best practice. During the year, we have defined important touchpoints in order to better assess and improve our customer service.

  • Increasing amicable solutions

CoE has implemented proactive Asset Management strategies to maximize value creation in the interest of our customers. In France, we were able to achieve a 45 per cent amicable sale rate for the collateral assets of our customers in 2020 up from 38 per cent in 2018. Our target for next year is to reach a minimum of 50 per cent. In Italy, while assuming mainly legal processes, we are aiming to increase the portion of amicable solutions.

  • New market entries

Also during the year, the CoE Secured has contributed to new market entries with portfolio acquisition in Spain and Cyprus.

Woman with headset

Performing Centre of Excellence

  • Integration into the new Retail Banking division

The Performing Centre of Excellence was created in order to accelerate Hoist’s growth in performing loan acquisition and management, ensuing a consistent approach and sharing of best practice across our group. Performing loans have been identified as a key target asset class for Hoist, with our banking licence providing us with a competitive advantage in this space. The CoE has served as the foundation for our newly created Retail Banking division, which launched in January 2020 to accelerate our performing product expansion. The CoE is now fully integrated into the Retail Banking division and will continue to ensure we have the knowledge and skills required to manage our customers effectively.

  • Expanding our Credit team

As we expand into performing and retail banking products at Hoist, we will continue to manage our risks effectively. To support this, we have expanded our portfolio management and credit loss modelling team and continued to develop our Expected Credit Loss Allowance framework. During 2020, allowances for future potential losses have become a particularly hot topic for banks, with the transition to IFRS9 coinciding with the Covid-19 pandemic. The knowledge we have gained since we acquired our first performing portfolio in 2018 – and in particular through this more turbulent period – will stand us in good stead to offer new performing products to our customers.

  • Navigating our way through Covid-19

Hoist has over 2,000 performing mortgage customers across Poland and UK and, like all banks, has been providing customers with Covid payment holidays where the pandemic has caused customers to have concerns over their ability to make future payments. We have implemented new processes to assess these payment holiday requests and estimate the potential impact to Hoist. In this way we have provided our customers with the breathing space they need to manage their finances during the pandemic, whilst ensuring our bank is protected against downside risk.

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- Annual Report 2020 -
- Årsredovisning 2020 -