How Coronavirus affected MFIs


What happens to companies in the field of microcredit and what is expected to happen in the near future – experts explained this during the webinar


Many shells went online during quarantine. Events are no exception. Conferences now gather experts and listeners near the screens of smartphones and laptops. Last week, the first of a series of FinUpdate webinars organized by Bank Online took place in this format. The webinar was devoted to the current situation in the MFI market.

Leaders of the biggest players in the MFI market and financial market experts attended the webinar and shared their vision.

What happened on the market with the start of quarantine

From the first days of quarantine, MFIs reduced the amount of loans issued. This is especially true for offline points. According to Alina Andronicova, CEO Moneyveo, the amount of debt issued at the company’s offline points decreased by 5 times. In addition, the company tightened the scoring, which also affected the reduction in the amount of loans issued. By the way, the scoring model has changed almost all market participants.

It is also influenced by the fact that not all customers want to take a loan in the current situation. Many of them lost their jobs, not knowing what awaited them. This means that they are not sure they can repay the loan.

Vladimir Doval
Director of creditplus

Instantly increased the number of loans from all market participants. At the same time, Manivio, Mycredit and CreditPlus managers noted, all companies provided long-term more loyal rules to customers, changed the restructuring plan and did not charge late fees.

According to Anna ZamazivaThe chairman of the board of the All-Ukrainian Association of Financial Companies will leave the proceeds of all companies involved in lending entirely during the quarantine period. Also, there can be no talk of any profitability before the end of the year. “The owners are now interested in making sure their business survives,” the expert said. Companies had to cut marketing budgets completely to cover the main salary expense in this and the following months, with management abandoning the bonus.

Some smaller players leave the market. As noted Roman KaterinchikThe founder of MyCredit, the company received 3-4 offers from such companies for the purchase of a loan portfolio.

Among the positive aspects during quarantine, experts said, firstly, a greater cohesion of the teams. According to Alina Andronicova, the business model of online trading is proven 100% today.

Vladimir Doval
Director of creditplus

According to Vladimir DovalThe director of Aventus Ukraine (CreditPlus), many companies can now experiment what they could not before. You can use new technologies, new processes and products and monitor results.

End of year forecast

According to Anna Zamaziva, now all decisions taken by owners and top management are correct, as this is the first time such a situation has developed. Some people are more successful, some less. By the end of the year, it will be possible to evaluate it.

Elena Andronicova stated that if quarantine ends gradually in May, MFIs will be able to recover from the deficit by September. If quarantine is delayed by one month, the period of recovery from damage is delayed by two.

Anna Zamaziva
Chairman of the Board of the All-Ukrainian Association of Financial Companies

Vladimir Doval is confident that the MFI will be the first to recover. “They are more mobile, active. If they improve the overall situation, they will be the first to restore their loan programs.

We, in turn, note that despite the difficult situation in which MFIs turned out to be like many other enterprises, they all reinforce social responsibility during epidemics and quarantine, and are also prepared to make concessions to customers who are in a difficult situation. Are also in position.

Read: Credit holidays: will Ukrainians forgive debts?


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