Collectius boosts Thailand loan portfolio to US$581 million in new acquisition

  • Collectius acquires US$42 million in unsecured non-performing loans from consumer finance firm in Thailand 
  • With this acquisition, Collectius has secured US$581 million of non-performing loans in the country 
  • Rising interest rates have contributed to an increase in non-performing loans 

SINGAPORE, Oct. 3, 2023 /PRNewswire/ — Collectius, the leading restructuring partner for financial institutions in Asia, has secured an additional US$42 million (THB1.48 billion) in non-performing loans (NPL) in Thailand. The deal, which includes a combination of credit cards and personal loans, extends the strong momentum of portfolio acquisition for Collectius since it was licensed by the Bank of Thailand (BoT) in 2016.  

To date, Collectius has purchased a total of US$581 million worth of NPLs, serving over 700,000 customers in the country. Thailand’s household debt stands at 91% of the country’s gross domestic product, but there’s optimism as employment figures are increasing and the Government is reacting to better economic outlooks with plans to raise the minimum debt repayments from 5% to 8% in 2024 and to the usual 10% in 2025. Collectius is preparing to support more Thai customers on their journey to financial freedom by securing additional portfolios over the next 12 months.

Commenting on the transaction, Kian Foh Then, Group CEO at Collectius said: “This acquisition signifies our commitment to supporting Thailand’s financial ecosystem and empowering another 47,000 customers to become debt free. Our approach, backed by our partnerships and digital capabilities, ensures that we can service NPLs in a responsible and sustainable way.”

As a leading Singapore-based fintech pioneer in  debt purchases, Collectius partnered with IFC in 2020, a member of the World Bank Group, to launch a US$60 million investment platform under the Distressed Asset Recovery Program (DARP) dedicated to acquiring and resolving debt in Thailand, the Philippines, Indonesia, Malaysia, and Vietnam. Through the collaborative efforts of all participants under DARP, banks have been able to offload US$30 billion in NPLs and is facilitating the normalisation of obligations of more than 18 million households and SMEs.

Furthering their regional footprint, Collectius recently acquired US$2.5 million worth of NPLs through a deal with  a pioneer digital bank in the Philippines. As a partner since their inception, Collectius has managed the bank’s end-to-end debt collection. As part of this partnership, Collectius will also be launching a pilot programme that will enable partner banks to seamlessly transfer future NPL cases for resolution. 

Collectius continues to reinforce its position as the preferred partner for sale of consumer NPLs in Southeast Asia, by employing technology and digital-led strategies to build additional servicing capacity. In 2022, the company increased its assets under management (AUM) to US$7.1 billion, servicing over 6.3 million customers across Singapore, Indonesia, Philippines, Malaysia, Thailand, India and Vietnam.  

About Collectius

Founded in 2014, Collectius is Asia’s leading fintech company in debt management services with operations in Singapore, Indonesia, Philippines, Malaysia, Thailand, Vietnam and India in which it has a rapidly growing footprint of more than six million customers. The company services consumer and SME non-performing loan portfolios of more than US$7 billion, either purchased by Collectius or held by independent parties.

In a market where an estimated 100 million people are affected by bad debt management practices, Collectius is the market leader and, in partnership with International Finance Corporation (IFC), establishes the best practices for the industry to follow. The ‘Collectius way of Collection’ employs a customer centric approach to debt management supported by a data-driven collection platform and powered by machine learning and digital first communication. Collectius plays a key role in ensuring the stability of the financial system in Asia by providing banks and financial institutions the opportunity to offload their non-performing loans, thus strengthening their balance sheets and enabling them to continue extending credit that facilitates economic growth.

The company is majority-owned by its two founders Gustav A. Eriksson and Ivar Björklund, with the remainder owned by the IFC, Stena AB and Formica Capital.


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