COLLECTIONS EUROPE 2013
Business Development Unit
UniCredit Credit Management Bank – Public
2
About us
Organization
IT Platform and management system
Our service model to support Companies (management of
unpaid collection orders, trade receivables recovery,
receivables transfer, receivables assessment)
10 essential elements of successful SME/Corporate
collections
References
Summary
UniCredit Credit Management Bank – Public
3
About us
UniCredit Credit Management Bank S.p.A. is the UniCredit group's company specializedin problem loan management: we are leaders in the domestic market and we are theonly European servicer that has been assigned the highest Standard & Poor’s and FitchRatings.
Since 2001 we have expanded operations to cover problem loans and receivables forcustomers outside the Group. We're on the market.
Our "non-captive" clients include other Italian and foreign banks, insurance companies,utility companies, securitization vehicles, leasing companies and financial institutions,courts, as well as commercial, industrial and service firms.
Our approach to credit management is based on highly efficient and specializedprocesses aimed at ensuring maximum recovery rates at the lowest management cost:we operate through a highly flexible structure.
Our activity covers several areas related to past-due and non-performing loans andreceivables: NPL management, transfer of non-performing loans, purchase of past-duereceivables from the public authorities, servicing and corporate service provider insecuritization transactions, process consulting.
Through our subsidiaries we also offer the Group and the Market specific products forthe restructuring of mortgage loans of individuals and households (UCCMI), as well asmediation and conciliation services (EIM).
In addition to our status as a Bank, we differentiate ourselves from traditional operatorsin our pursuit, where possible, of out-of-court settlements, our focus on Debtors' actualrepayment ability, our adoption of rigorous quantitative credit assessment and financialperformance measurement systems, and our attention to customer relationships.
UniCredit Credit Management Bank – Public
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Organization
Our corporate structure is organized by type of business. Bank loans/specializedreceivables: for these two divisions there are corresponding organizationalFunctions and Units in place, focused on individual types of loans/receivables.
Our external Networks (Lawyers and Professionals) are also organized according tothis specialized and focused approach.
Our Personnel work in specialist teams organized by type of loan/receivable andcustomer: as a result, there are "dedicated teams" based on the nature, type andsize of managed loans/receivables.
Our Teams are strongly motivated and oriented to goals shared with our Clients:there are incentive schemes in place for our asset managers. The external Network'sremuneration (External Professionals, Negotiators/Collectors) is linked to theachievement of targets (strengthened by specific "contests").
Our operating processes are characterized by a proactive approach toloan/receivable management, based on a specific assessment of expected recovery.
We prioritize our asset managers' activities and systematically select recoverystrategies, with the support of an advanced IT management system fed by updateddatabases that enables quantitative assessment of the realizable value ofloans/receivables.
We have dedicated units and highly qualified staff to oversee every aspect of creditmanagement: loan transfer, asset transfer for troubled firms, servicing, corporateservice provider, auction advertising, consulting and coaching on specificprocesses, special purpose joint ventures.
We also provide conciliation and mediation services, as well as services for therestructuring of corporate and retail mortgage loans through two dedicated whollyowned subsidiaries.
UniCredit Credit Management Bank – Public
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IT Platform and management system
The Bank has designed and implemented a dedicated applicationsystem, fully and continuously operating and accessible by boththe internal and external organization.
The web based application system is accessible through theInternet.
Documents are electronically managed, resulting in low paper usein ordinary document management: all files are digital and can beaccessed by our employees, as well as by customers and theexternal network of lawyers and professionals.
Our Management System provides totally “paperless”management of information and documentation.
The Bank's Management System,in addition to ensuring optimal management effectiveness,
gives clients the opportunity tomonitor the management results
for the overall portfolio under management or of the individual loan or receivable.
UniCredit Credit Management Bank – Public
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CONTRACTDEFINITION
START OFMANAGEMENT
ACTIVITIES
OPERATINGMANAGEMENT
DEFINITION
POSSIBLE "TEST" ON A PRELIMINARY REPRESENTATIVE PTF OF THE FIRM
A) DEFINITION OF CONTRACTOPERATING CONDITIONS(information flows,operating processes andschedule, delegatedpowers, reporting methods).
B) SHARING OFTRANSMISSION,MANAGEMENT ANDMONITORING PROCESSES.
C) SIGNING OF CONTRACT.
A) INITIAL CONTACTS BETWEENUCCMB AND CLIENT(contacts by Accountmanager)
B) ALLOCATION OF ACCESSCREDENTIALS FOR THEUCCMB MANAGEMENTSYSTEM (with associateduser training).
C) UCCMB ASSUMPTION OFPOSITIONS (transmission ofinformation flow containingdata and any documentsnecessary to carry out theservice).
A) ASSIGNMENT OFTRANSFERRED POSITION TOINTERNAL UCCMB MANAGERS(geographical distribution).
B) LETTER BY UCCMB TO DEBTOR(engagement, with contactreferences for settling theposition).
C) ACTIVATION OF OUT-OF-COURTPROCEDURES (letters, phonecollection, home collection).
Our "service model" to support firms:PRE-MATURITIES AND TRADE RECEIVABLES MANAGEMENT
UniCredit Credit Management Bank – Public
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ITR
EC
OR
DS
CH
EC
K
PR
OC
ES
SA
NA
LYS
IS
DO
CU
ME
NT
AN
ALY
SIS
Client portfolioto be managed
Check of contractual updates
Inclusion in thecontract and invoicefor UCM activity(flows)
Analysis of supply contract andFAQ / outcome of complainthandling
Opening ofUCMB c/a
Finalization of process analysisto prepare contractual offer in termsof workflow and service
Definition of contracttechnical terms
Notification ofc/a to clients
Transmission ofdetailedelectronic record
IT record forcash collection
Check of billing processand fee management
Formal appointment
and c/a openingC
ON
TR
AC
TU
PD
AT
ING
WHO WHAT PRELIMINARY STEPS MANDATE DEFINITION
Client /Principal
Our "service model" to support firms:PRE-MATURITIES AND TRADE RECEIVABLES MANAGEMENT
UniCredit Credit Management Bank – Public
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PRE-MATURITYMANAGEMENT
WHERE APPLICABLE
SETTLEMENT
OFEXPOSURES
POST-MATURITY
MANAGEMENT
POSSIBLE EX-POST "TEST" ON A PRELIMINARY REPRESENTATIVE PTF OF THE FIRM
UCCMB ASSUMPTION OFCREDITOR'S GLOBALPOSITIONS (turnover).
TELEPHONE "REMINDER"TO CLIENT (no. of daysbefore maturity) by:- pre-recorded telephonecall;- operator telephone call;- SMS.
A) OUT-OF-COURT MANAGEMENT
- Written reminders (also on theletterhead of the client) withinagreed timing;
- Letter of formal notice;
- Phone collection (within agreedtiming);
- Home collection (whereapplicable)
B) JUDICIAL COLLECTION (withclient's consent).
A) CLOSING OF POSITIONS BY:
- Full out-of-court recovery;
- Full and final settlement;
- Judicial recovery;
- Impossible/financially non-viablerecovery
B) SALE OF RECEIVABLE (WHEREAPPLICABLE).
Our "service model" to support firms:PRE-MATURITIES AND TRADE RECEIVABLES MANAGEMENT
UniCredit Credit Management Bank – Public
9
DA
TA
TR
AN
SM
ISS
ION
CO
LLE
CT
ION
MA
NA
GE
ME
NT
DO
CU
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NT
AN
ALY
SIS
NO
TIF
ICA
TIO
NS
OF
NO
N-R
EC
OV
ER
AB
LE
LOA
NS
MA
NA
GE
ME
NT
UN
PA
IDB
ILLS
Billing Transmission of detailedelectronic record
Receipt ofelectronic record/activityscheduling
5 days beforeinvoice expiration -pre-reminder
At expirationcollectionreceipt andreconciliation
When informed ofunpaid bill, clientcontact and reminder
Assignment offiles
Analysisof individualfiles (stocks)
Verification on the basisof available information
of Italian companies under insolvency proceedingsceased, inactive or under liquidation
Positions to be placedunder management forrecovery
Notificationof non-recoverablereceivables
End ofnotificationservice of non-recoverablereceivables
End of recoveryservice
Management mandate- out-of-court activity
Management mandate- judicial recovery
Positions closed throughcollection or write-off
Returned positionsdue to non-financially viablerecovery
WHO WHAT PRE AND POST MATURITY MANAGEMENTSETTLEMENT OF
POSITIONS
Client /Principal
Our "service model" to support firms:PRE-MATURITIES AND TRADE RECEIVABLES MANAGEMENT
UniCredit Credit Management Bank – Public
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10 essential elements of successful SME/Corporate collections
1. Focusing on actual recoverable value based on real Debtor’s repaymentcapability.
2. Adoption of strict quantitative logics to assess the expected recovery.
3. Systematic prioritisation of management activity focusing on positionswith major recovery potential.
4. Definition of different recovery strategies according to the Client needs.
5. Calculation of the present value of judicial settlement and valuation of theprice of the possible loan’s sale (receipt price).
6. Local Real Estate market values assessment.
7. Prompt recovery actions.
8. Management strategy focused on Out-of-court settlement.
9. Selection of internal managers and external consultants and lawyersaccording to the following assignment criteria of loans:
• Private and Corporate loans segmentation;
• Sectors: banking loans, Corporate loans, leasing, Bankruptcy loans;
• Geographical distribution of loans;
• Loans amount and aging.
10. Incentive plans for internal Managers, evaluation of Lawyer’s activity andfees paid to external Consultants strictly linked to the results achieved.
UniCredit Credit Management Bank – Public
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Contact details
UniCredit Credit Management Bank S.p.A.
Head OfficePiazzetta Monte 1/A37121 Veronawww.creditmanagementbank.eu
Business Development Unit – Foreign Branches Unit
Manager Foreign Branches Unit
Emanuele Fabris
Address: Piazzetta Monte 1/A – 37121 Verona
Telephone: +39 045 8678031
Mobile: +39 338 6669691
Mail: [email protected]
Business Development Unit
UniCredit Credit Management Bank – Public
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