Transaction Capital Risk Services is a technology-led, data-driven provider of customer management solutions in South Africa and Australia through a scalable and bespoke fintech platform, enabling its clients to mitigate risk through their customer engagement lifecycle
TCRS’ diversified business model reduces concentration risk and supports performance in different market conditions. TCRS is diversified by business activity across collection, transactional and value-added services.
Within its most significant business activity, collection services, TCRS acts as both a principal in acquiring and then collecting on non-performing loan portfolios, and as an agent on an outsourced contingency or fee-for-service (FFS) basis.
With its business activities diversified further across various consumer related sectors, clients and geographies, TCRS’ business model is defensive.
Results for the half year ended 31 March 2019
- Headline earnings ▲ 13% to R134 million
- Total income ▲ 12% to R1 051 million
- Purchased book debts ▲ 68% to R1 727 million
- Price of purchase book debts acquired ▲ 97% to R437 million
- Books purchased R404 million in South Africa
- Books purchased for R33 million in Australia
- 79 Clients in in South Africa
- 45 Clients in Australia
- Non-interest revenue ▲ 14% to R977 million
- Estimated remaining collections (120 months) ▲ 68% to R1 727 million
- Cost-to-income ratio improved to 80.5% from 81.0% in HY18
- 3 350 employees
Transaction Capital Risk Services’ (TCRS) activities broadly contribute to the efficiency and effectiveness of the South African and Australian credit systems. This includes the acquisition of distressed book debts, which assists clients to strengthen their balance sheets by accelerating cash flow and removing NPLs, thus improving their ability to continue providing debt finance to the consumer market.
TCRS also assists clients to lend responsibly, to identify which consumers to lend to, and to then collect successfully. This supports the affordability of credit by mitigating unnecessary pricing for risk.
In collections, the primary focus is on rehabilitating indebted consumers by helping them understand the importance of repaying their debts as a legal obligation, and structuring payments in a manner they can afford. This enables indebted consumers to remain active in the credit system.
Through Transaction Capital Business Solutions, SMEs that may not otherwise have access to credit gain access to working capital finance.
Our Vision 2021
We will focus on the following five strategic themes:
- Develop, engage and reward our people to engender a high performance culture.
- Widen and deepen our industry solutions to entrench and grow our leading market position.
- Pioneer innovative and bespoke capital solutions to deliver superior risk adjusted returns.
- Target strategic acquisitions to leverage and enhance our capabilities and expand internationally.
- Leverage technology, data and analytics in our sizable, scalable platform to drive profitable growth.