In the face of increasing competition, ISP Finance Services Limited has embarked on an aggressive pricing strategy to grow loan volumes.
To this end, the company established a tele-sales centre to “aggressively compete” in the microfinance market across several delivery channels, the company outlined in its recently-released annual report.
“The tightening of the economy has caused the microfinance space to become increasingly competitive resulting in many of the commercial banks entering … via unsecured employer deduction loans,” ISP Finance said.
During the year, its net loan portfolio increased by 7.6 per cent from $627 million in 2019 to $675 million in 2020.
However, with reduced rates, net interest income increased by 2.2 per cent from $336 million in 2019 to $343 million in 2020.
ISP recorded a net profit of $65.393 million for the year ended December 31, 2020, which was a 185 per cent percent increase from the profit of J$22.94 million achieved in 2019.
During the year, the company invested in the use of a cloud computing platform facilitating work from home for the majority of its employees.
This initiative was supported by the establishment of a tele-sales department and a blitz in digital marketing to keep the company’s brand visible.
“We continue to monitor the downward trajectory of domestic interest rates and monitor the impact of COVID-19 on the tourism sector and core clientele, small business and employees. We continue to make strides in offering loan products to satisfy our clients’ needs in relation to household expenditure, education and health,” ISP said.
The company also noted that there are new areas in which it intends to expand product offerings in 2021 and will seek opportunities to grow its loan portfolio either through acquisitions or mergers.
“This would include buying existing loan portfolios from other financial institutions. The company remains open for dialogue and has engaged the services of an investment bank to structure any potential opportunities that might arise.”
-Caribbean Business Report.