Intesa Sanpaolo has never stopped believing in Italy and provides support to those wishing to relaunch; that is why in 2015 it has earmarked 48 billion euro of new medium/long-term loans for households and businesses. Of these, 41 billion in Italy (+54% compared to 2014) with 20,000 companies back to performing loan positions (29,000 since 2014).
During the year the activities aimed at the full implementation of the Proactive Credit Management Processes dedicated to managing customers in potential difficulty were completed; these allowed, through the timely identification of the first signs of tension and proactive actions, to reduce by 21% during 2015 the changes from performing to non-performing.
Even on the issue of reducing loan granting time a project within the Business Finance Hub, covering all product lines (MLT Loans, Leasing and Factoring), has been developed. The project includes cross-functional activities, among which the most significant are the activation of the loan granting time monitoring system, a phase of digitization of the records and dossiers from the Commercial Department to the Credit Department and the introduction of a “preliminary examination” aimed at speeding up the processing of real estate dossiers.
Intesa Sanpaolo developed “Programma Filiere”, a new model of collaboration between banks and businesses that focuses on the relationship between the company and suppliers, created with the aim of encouraging the growth of production chains of excellence in the Italian entrepreneurial system by improving credit access conditions and defining a range of custom products for companies with production-related dealings.
The “Programma Filiere” is based on three pillars.
- Investments: access to credit under improved conditions, discounts on products and services, and training for participating companies;
- Innovation: new criteria for access to credit including the identification of the industrial production chain and signing of a specific contract - the production chain agreement - with the lead company;
- New approach to credit granting: formalisation of the production chain, with a risk assessment that takes account of qualitative elements, establishment of a production chain limit, and tailor-made commercial offerings dedicated to both companies and their employees.
Looking ahead, the overall potential of the "Programma Filiere" may have significant repercussions on the Italian industrial system. At year end, the number of the lead companies was more than 270, for a potential credit ceiling of about 17 billion euro, involving about 15,000 suppliers from three primary sectors (fashion, agri-food and metalworking-mechanics), which employ a total of 80,000 employees for a total turnover of 50 billion euro per year.
Among the lead companies that first joined the programme are: Brunello Cucinelli, Azimut, Prima Industrie, Engineering, Alberta Ferretti/Moschino, Valvitalia, Antinori, Conserve Italia, La Doria, Cimbali, Bonfiglioli. These are coupled by numerous medium-sized companies, rooted throughout the entire country.
As part of the "Programma Filiere", in 2015 the Business Finance Hub launched the operational and commercial works for the activation of "Confirming", an evolved form of indirect factoring that allows the lead companies to implement a more efficient management of trade payables and payments to businesses, and introduces decidedly favourable credit access terms and conditions for suppliers. The service stems from an agreement between the lead company (customer) and Mediocredito Italiano through which the customer entrusts Mediocredito Italiano with the management of payments of trade payables to suppliers within the Supply Chain when due in the invoice.
Thanks to the agreement signed, suppliers in the supply chain who decide to join the proposal have the possibility to request, on a dedicated online portal, with maximum flexibility and simplicity, an advance payment of all or part of the receivables managed by Mediocredito Italiano on behalf of the customer.
Mortgage renegotiation is another highly important issue to production, for this reason since 2013 Intesa Sanpaolo has adopted specific processes and procedures that offer mortgage renegotiation to SMEs in temporary financial difficulty, facilitating the sustainability of the loan by extending the duration of the repayment plan for the residual debt in order to adjust the commitment to the actual available cash flows of the customer. This tool allows prompt and proactive monitoring of the positions which, despite being affected by temporary financial difficulties, show solid prospects of positive development.
During 2015 mortgages with payment arrears were renegotiated for over 2,500 Corporate customers and Retail Companies. In addition, 363 lease agreements for Corporate customers and 311 for Retail Companies were reviewed.