KBC Consumer Finance, the consumer finance company of Belgium's KBC group, which started operating in April, estimates it will grant loans worth 20 million euros by yearend.
"So far, we've granted loans worth several million euros and we're on schedule with our initial plans. We're not trying to expand our business overnight, but we will focus on the development of distribution channels this year. I expect the value of granted loans to reach 20m euros by yearend and triple in 2009," states Willem Hueting, KBC Consumer Finance CEO. The company only grants RON-denominated consumer loans, with a 22% annualised percentage rate on average, depending on the client.
KBC counts on a mix of distribution channels and sells its products through its own agencies, retailers and brokers. The Belgian firm will also expand on the Internet next year and grant loans to people through online stores.
Hueting says that he is considering the possibility of launching a car loan and some credit cards, probably co-branded ones, in the first half of next year, and for the time being rules out entrance onto the mortgage segment. Hueting considers the consumer finance market will advance by 40% this year and will reach 20 billion euros by the end of 2011.
KBC Consumer Finance currently has 95 employees, with their number due to reach 175 by yearend and rise to 350 in 2009. KBC also plans to add two branches in Bucharest and one in Bacau, Craiova and Ploiesti to its territorial network in the coming period. The company is currently present in Bucharest and Brasov. The Belgian group's initial investments in the development of the consumer finance firm stood at 12m euros and could double in the following years, maintains Hueting. KBC also owns KBC Securities brokerage, Romstal Leasing and Ink insurance broker. KBC took over Romstal Leasing and Ink in late 2006 for around 70m euros.
The consumer finance market is getting ever more crowded each year. The biggest player on this market is Cetelem, a unit of French BNP Paribas. Cetelem ended last year with a loan volume worth 226m euros and expects an 80% increase this year.
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