Aventus Group has been successfully developing its business in the Polish market for more than eight years. In 2019 Aventus Group companies in Poland earned a net audited profit of EUR 2.84 million.
At the end of last year, the regulation of the short-term loan market in Poland was changed, which led to a decline in the profitability of all credit companies operating in Poland. However, even with the change in regulation, Aventus Group companies plan to end 2020 with a similar profit as in 2019.
Let’s look at the key numbers:
• 2,84 million Eur – the net audited profit in 2019
• 4 – the number of Aventus Group companies in Poland that list loans for investors on PeerBerry
• 8 – years of Aventus Group operations in Poland
• 17% – the share of Polish loans in the total loan portfolio on the PeerBerry platform
• 4,4 million Eur – the current amount invested in Polish loans on the PeerBerry platform
• 25,7 million Eur – the total invested amount in Polish loans since the beginning of the partnership with PeerBerry
• 230 million Eur – cumulative issued loans, since the beginning of business in Poland
Anna Kowalewska, the Country Manager for Poland market, shares how Aventus Group companies adopted its business to the new regulations and how Polish companies are coping with the pandemic.
What changes the new regulation brought to the Polish short-term loan market? What impact has this had on your business?
The short-term loans business is not a privileged one, so it is natural that regulators have reviewed the sector and introduced some changes. One of the main changes in the new regulation is the so-called interest rate ‘ceiling’, which has significantly reduced the profitability of many credit companies in the Polish market. For the Aventus Group, the new regulation in Poland was not a surprise. We knew in advance about the upcoming changes, and we were preparing for that by gradually reducing product pricing.
Despite the changing regulatory environment and the challenges of the pandemic, we were able to maintain the efficiency of all Group companies operating in Poland. The lower price of loans increased their demand – loans became attractive to a wider range of clients. We see that we are increasingly approached by clients from the banking sector. Significantly increased demand for short-term loans has increased the total volume of loans we issue. Although regulation has reduced the profitability margin, we see that increased loan volumes this year will generate a similar amount of profit as last year.
What impact has the pandemic had on the companies you run? How do you manage to maintain business stability in pandemic circumstances?
In connection with the pandemic, the Polish government introduced the Anti-Crisis Shield, which led to the cut of the loan cost. The reality of the pandemic also made us turn to work from home. However, it did not affect in any way the effectiveness of our work, because our business operates in the online world. The Fintech industry, in which we operate, is characterized by the high automation of many processes, and the successful use of modern technologies. Therefore, each of us can perform our duties from anywhere, where we have access to the Internet. I work with a fantastic and professional team, and this is our main strength during this difficult time. I believe that the power of the business lies in a strong team and proper management.
2019 has been very successful and profitable for the companies you manage in Poland. What do you forecast for 2020, what financial result do you expect?
Despite the difficult situation in many industries caused by the pandemic, we are doing well. Our expected result for 2020 only proves this. During three quarters of this year, taking into account all the effects of the first wave of Covid-19, we have achieved a better result than in the same period of 2019. I think that’s a big reason to be proud. But I have to agree that it is difficult to predict results and concrete consequences of the second wave of the pandemic for the future. However, given the proven capabilities of our team, I am convinced that our annual result will be a very positive surprise again, and we will finish the year better compared to 2019.
Our efficiency and success are a result of proper risk management and our experience we gained over the years of our activity in the short-term lending business. We always take every opportunity we have. We have a team of great professionals, extensive knowledge, long-term experience, and access to the latest technologies. All this empowers us to be a few steps ahead.
What is the future development plan of the Aventus Group companies in Poland?
We are growing and introducing new solutions that allow us to manage risks better and creates added value for our clients. We plan to continue to invest in our development, seeking that our brands will be in the TOP 3 most popular loan offers in the market. Taking into account our possibilities, I believe that currently, we are in our best shape to achieving this goal.
It is important to mention to investors that in the Polish market, seeking the efficiency and optimization of the marketing budget, we have decided to further develop our business with our two strongest brands – Smart Pozyzcka and Pozyczka Plus. For investors, nothing will change. To date, PeerBerry investors have been able to invest in loans from four lending companies in Poland. These four companies will continue to list loans on the PeerBerry platform, but the brands will remain two – Smart Pozyzcka and Pozyczka Plus. PIXO Sp. z o.o. (LLC) and LTU Finance Sp. z o.o. (LLC) will continue to operate under the Smart Pozyczka brand. Tusumi Sp. z o.o. (LLC) and Arena Finance Sp. z o.o. (LLC) will operate under the Pozyczka Plus brand.
For how long do you work for the Aventus Group? Tell us a little about yourself and your professional experience.
I am in the lending business for over 7 years already. My career path is connected with the Aventus Group almost from the beginning. I believe that years of experience in the Aventus Group has greatly expanded my knowledge of the lending business in the broadest sense. Before I joined Aventus Group, I was a director of a debt collection company. I am a graduate of Managerial Studies at SGH – one of the best universities in Poland. I am also very passionate about the Lean Management approach.