EOS JOURNAL THE MAGAZINE FOR CLIENTS OF THE EOS GROUP – ISSUE 02.2018 A REVOLUTION FOR BANKS An EU directive is creating new business models for financial institutions PAYING MADE EASY The simple way to settle debts: EOS offers many options Focus on paying The new flexibility EDITORIAL 040 06 Klaus Engberding Chairman of the EOS Group’s Board of Directors Contents 10 16 03 News Dear reader, 04 ‘Interest in co-investments’ EOS experts are in great demand at international The increasing regulation of the financial ser- conferences. Discover more about their latest vices industry is causing headaches for bank findings on non-performing loans directors. That is just one of the findings of a worldwide survey conducted by the manage- 05 It’s OK to make mistakes ment consulting firm PwC. A different study Slip-ups happen, but they should not be found that regulation can encourage innova- repeated. This is why EOS cultivates an open tion. That apparent paradox was reported by error management culture software developers CA Technologies. Of the ages/Markus Lange (p. mauritius 16, 18), images/Photononstop/Emilie Chaix (p. mauritius 18), images/Pixtal/WE102142 (p. 06 Turning debts into cash-flow mages/iStock/PeopleImages (p. Getty 12), Images/iStock/seewhatmitchsee (p. 3), Getty Images/iStock/setixela imago/ (p. 11), European banks surveyed, 86 per cent said es/Caia Image/Sam Edwards (p. 3), mauritius images/Hero Images (title, mauritius p. 2, 11), images/Hoxton/Tom Merton (p. 14), that investments in the implementation of the Hrvatski Telekom in Croatia is the country’s stian Vollmert (p. 2, 5), Timor Šatara (p. 6, 9) largest private investor. It is bolstering its financial Payment Services Directive 2 (PSD2) would strength with the help of EOS Matrix in Croatia accelerate their digital transformation pro- grammes. The European lawmakers want the 10 Turbo power for the digital bank new directive to increase payment transaction The Payment Services Directive (PSD2) ensures security and promote more competition. Since that bank accounts are more transparent. For January banks must give third-party providers banks, this is a challenge but also an opportunity access to their clients’ account information. for new business models For banking institutions, that means more com- petition on the one hand and the chance to 14 Paying made easy Consumers should be able to settle their debts offer new services on the other. In the cover easily. EOS offers a wide range of digital and story on page 10 you can find out how banks analogue options might use this opportunity. EOS also is working with payment service 16 City with two faces providers. Our objective is to make it as easy Budapest offers space for two cities. These tips as possible for consumers to settle their out- will help travellers find the most exciting and standing bills. To discover how we use in-house relaxing aspects of this big city and third-party solutions to provide consumers with convenient payment options, please turn to page 14. Keep questioning. Publication details Publisher EOS Holding GmbH; V.i.p.d.P.: Lara Flemming Address Steindamm 71, 20099 Hamburg, Germany; Tel.: +49 40 2850-1222; Fax: +49 40 2850-1551 Production JDB MEDIA GmbH; Tel.: +49 40 468832-27 Editors T. Reich, J. Titov; JDB MEDIA GmbH: K. Gün- ther (Head), U. Feldhusen, K. Fuhrin, M. Hintze, M. Wolbert Graphic dpa/picture alliance/Zsolt Szigetvary (p. EOS Holding 19), (p. 2, 3, Getty 4, 15), 13, Images/iStock/julief514 (p. Getty 12), I design I. Ramos Sellentin (AD), S. Georgi Image editing J. Poppe (Head), U. Dinse Printing D+L Printpartner GmbH Schöning (p. iStock.com 19), (p. Jann 2, 16, 19), Klee (p. mauritius 2, 16), images/Arpad Benedek/Alamy (p. mauritiusmauritius 19), imag images/imageBROKER/Paul Williams - FunkyStock (p. mauritius 17), images/Jan PR18), (p. 8, PATRICK 2, 18, Wlodarczyk/Alamy 19), 7, RUNTE (p. 5), picture (p. alliance/PIXSEL mauritius 2, 17), im (p. 7), Prisma/Tibor Bognar/Photoshot (p. Seba 19), Klaus Engberding Photos: 2 EOS Journal NEWS The future is here EOS in Germany is deploying its new data- driven debt collection software for the first time. Valuable data analysis: EOS is Important Internet: Telecommunications companies get building the optimal debt their money before other providers do collection system Better stay t EOS in Germany, the debt Michael Robert, Lead Product A collection software of the fu- Owner at EOS Deutschland in online ture has been launched. In Novem- Germany, explains the benefits ber 2017, a minimum viable product of this agile approach: ‘The Survey in Hungary: Consumers prefer (MVP) went live. This is a simple learning effect generated by live to pay these debts first. initial version of the new debt col- operation is enormous. We are lection solution ‘Best Next Debt working continuously on new ungarian consumers pay bank debts first, Collection’ currently under develop- features and enhancements. We H according to a survey by EOS in Hungary. ment by Project FX. In the future, are building the optimal debt Then they settle debts with telecommunications this solution will automatically initi- collection system in line with our companies. In last place are debts towards oth- ate the best possible collection motto ‘Fail fast and learn faster’. er providers. ‘The majority of 20 to 40 year-olds measure to be undertaken next – There are still a few years to could not live without their smartphones and individually for each debtor. go before ‘Best Next Debt Internet access. So they pay their bills from tele- The MVP has been used to date Collection’ is ready to be de- communications companies before paying bills for selected receivables managed ployed for the millions of receiv- from other providers’, explains Marianna Agárdi, by EOS on behalf of OTTO. This ables managed by EOS. But the Director for the collection of unsecured debts involves employees from client in- end goal has already been set: at EOS in Hungary. voicing working side-by-side with The new software is a system For the survey, EOS examined several hun- debt collection officers and devel- that will set standards for qual- dred thousand unsecured receivables – pseu- opers. Users can give the program- ity and payment success in the donymised and compliant with data protection mers direct feedback at any time. digital age. requirements. 15 years of transformation in Macedonia ‘For 15 years EOS Matrix in Macedonia has been continually reinventing itself’, said Managing Director Katerina Bosevska in March at an anniversary recep- tion in Skopje with business partners and employees. In 2003 EOS in Mace- donia started out with just five employees and one client from the banking industry. ‘In recent years, we have proven just how important the contribution made by debt collection is to the Macedonian economy’, says Ms Bosevska. Today 85 employees support clients from a variety of sectors. EOS has also been purchasing receivables portfolios from banks since 2016. ‘We are always Anniversary: The management team of EOS Matrix in Macedonia celebrated with adapting to changing conditions, such as the opening of the local banking clients market for receivables purchases’, explains Ms Bosevska. EOS Journal 3 BEST PRACTICE Expert in Eastern European markets: Marwin Ramcke, Member of the EOS Group’s Board of Directors responsible for Eastern Europe, at the ‘Debt in European Emerging Markets’ (DEEM) conference in Bucharest NPL TRENDS ‘Interest in co-investments’ EOS Group experts are in demand as speakers when banks and investors discuss the latest trends in non-performing loans. They contribute their know-how as investors and service providers – as was recently the case at conferences in Bucharest and London. hich trends characterise the mar- ings need to be improved to invigorate the WHERE ket for non-performing loans Serbian NPL market. It is frequently the case YOU CAN MEET THE W (NPLs for short)? Where are the that sellers lack experience and suitable IT EOS EXPERTS hottest regions for NPL transactions? The solutions for this type of transaction.’ 06 – 07 June 2018 experts at EOS are usually present when the The panel discussion involving 14th Annual Credit Risk sector discusses such questions at confer- Mr Ramcke delved into the topic of which Management Forum, ences. Marwin Ramcke, Member of the EOS are the hottest European NPL markets at Vienna (Austria) Group’s Board of Directors responsible for present. Their conclusion was that Greece, Eastern Europe, was one of the specialists Italy and Spain are particularly active. 19 – 20 June 2018 who took part in the ‘Debt in European ‘Greek banks, for example, have been sell- NPL Italy, Milan (Italy) Emerging Markets’ (DEEM) forum. At the ing unusually large portfolios since 2017 conference in Bucharest (Romania) he took with nominal values of several billion euros’, 19 – 21 September 2018 part in a panel discussion on the Romanian says Mr Ramcke. This is why he identified Credit Matters VII, market. ‘In past years, banks in Romania have growing interest in co-investments when Budapest (Hungary) sold a large portion of their NPLs. Neverthe- in London. ‘We spoke with banks and in- less, the Romanian and indeed the entire vestment funds about potential cooperation 27 – 28 September 2018 Eastern European market offer much poten- projects’, he explains. ‘In such cases EOS NPL Europe 2018 Autumn, tial for NPL transactions in the coming years’, shares in the investment and assumes re- London (United Kingdom) predicts the Eastern European expert. sponsibility for processing the receivables after the purchase.’ 12 – 15 November 2018 Several billion euros SSOW Shared Services and Outsourcing Week, Ms Jelena Jović Milentijević, Managing Di- Berlin (Germany) rector of EOS Matrix in Serbia, spoke at the An overview of all events featuring ‘NPL Europe’ conference in London (United EOS experts: 28 – 29 November 2018 bit.ly/EOS_Events Kingdom) early in the year about her native NPL Iberia, market.