CFSL Integrated Report 2021

30 C I M F I N A N C I A L S E R V I C E S L T D Cim Finance’s retail point-of-sale model for its Consumer Finance business unit is a key strength and competitive advantage. Through seven standalone branches and an extensive network of 90 in-store counters across Mauritius and Rodrigues, we facilitate customer loans and monthly instalment repayments We offer Credit Finance Agreements (CFA) to enable our clients to finance the purchase of consumer electronic goods and furniture, and through Cim MoCrédit, we provide unsecured loans that finance personal projects which exceed their immediate cash resources. A home renovation or the purchase of a plot of land, for instance. We also offer our clients credit protection insurance, including a retrenchment cover, which has taken heightened importance for our retail clients in the current context, and is equally critical for the protection of our loan book. During the year, we launched paperless contracts via SMS, with over 155,000 contracts resulting in significant cost savings. We also launched an integrated e-commerce solution for online credit sales as an alternative payment option for retail partners’ websites. The number of unique individual Consumer Finance clients grew from 258,000 at the end of FY 2020 to 261,500 at the end of FY 2021, and Total Loan disbursements grew by 8% in FY 2021, despite a strict tightening of our credit policies. These metrics demonstrate strong demand for our Consumer Finance offering, indicating that our value proposition is as relevant as ever. Cim Finance’s Leasing component has traditionally been very strong in the second-hand and reconditioned car market, as well as with SME clients. With this in mind, we have significantly strengthened our footprint amongst new car retailers in the last few years. During the year, we renewed our partnership with Bamyris Motors, making us the dedicated inhouse leasing sales office in their Hyundai and Volvo showrooms. To further strengthen our position, we are launching a new leasing onboarding system in partnership with Seriti that will be used to streamline the leasing application process and improve the turnaround time on applications. Yet another innovation is the recent launch of a Green Leasing proposition for both new and recon hybrid and electric cars. Given the increased focus on eco-friendly cars and the market growth in hybrid cars in particular, we see this as a significant growth opportunity. We have developed a Green Bond Framework in line with the Bank of Mauritius guidelines on the issue of sustainable bonds in Mauritius and are the first company in Mauritius to have issued a green funding programme targeting domestic investors. As expected in view of the current market trends, Leasing disbursements were lower in FY 2021 compared FY 2020. Cim Finance’s Leasing portfolio remains a significant part of the business, comprising ~20% of the value of the total loan book. As a segment that relies heavily on tourism, the reopening of our borders to international visitors should be favourable for our Leasing services in the coming year. Cim Finance has the second largest market share of active cards issued. We continued to build on this feat by growing our number of credit cards by 4% during the year, which was significantly higher than the overall market trend, characterised by a contraction of credit cards by 8%. I believe this is thanks to our ability to leverage our retail distribution and outbound telesales channels, which resulted in a number of cross-selling initiatives. Group Review (continued) CONSUMER FINANCE LEASING CARDS & PAYMENTS G R O U P R E V I E W

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