EY Italian NPL market report: 329 billion euros of non-performing exposures – Technology service providers such as Debitos are potential solutions
Frankfurt, 23 June 2017 –
According to a current market report from EY (https://go.ey.com/2sNWwro), the global audit and transaction advisory firm, at the end of 2016 there were nearly 330 billion euros of non-performing exposures in Italy (€198bn of which were bad loans) – which represent around 17.7% of Italy’s total loan stock. The high percentage of deteriorated loans in Italy is creating increasing opportunities for distressed investments, EY explains in its report. As a result, loan portfolios have been sold by Italian credit institutes to investors at an increasing rate over the past years. But the problems seem far from being solved. According to EY, new service models will act as additional leverage to reduce the high volume of NPLs as quickly as possible.
EY states in its market report that it is currently working on a potential collaboration with servicing providers such as Debitos in order to sell non-performing loans quickly and transparently (see Market Report page 18/19). The German FinTech company allows non-performing loans to be traded via its auction-based online platform. “We are the only provider in Europe to process loan sales entirely online – from establishing contact with investors through to the sale,” said Timur Peters, founder of Debitos. Debitos recently opened its online marketplace for third-party advisors. In doing so, the company is reacting to a demand from the market to make its infrastructure available for transaction advisors. “Third-party advisors can now use our debt market as a kind of ‘white label solution’ for their own debt sales. This will bring more momentum to the NPL market,” added Mr. Peters.
Debitos is an online marketplace which allows companies, banks and funds to sell their illiquid credit exposures on the market through its auction-based online transaction platform. The platform leverages on the digitalization of the entire sale process and can reduce the expected disposal timing to 3-8 weeks compared to 3-6 months of the traditional process. A complete set of tools, from data presentation and analysis (through its Virtual Data Room) to market data, Q&A monitoring and online bidding are provided on the platform to deliver one single point of deal/market intelligence, interaction and pricing. Debitos, which was founded in Frankfurt in 2010 and has since concluded more than 220 online transactions with a total gross book value in excess of €1.8bn, is in the process of expanding its business across Europe.
You can find more information at: https://debitos.com/
Telephone: +49 (0) 6131 9302833
This post was written by Jens Seckerback