Filipe Matzembacher (Matz) is committed to improving lives and driving business value through financial services. With over a decade of experience in private equity, Matz has played a key role in portfolio companies, leading both the establishment of new financial institutions and the turnaround of distressed operations. In 2021, Matz joined C&A, a global fashion retailer, to develop an innovative financial solution for the Brazilian retail market. As a leader in financial services, Matz oversees credit, collections, fraud prevention, analytics, product development, customer service, planning and operations, ensuring strategic growth and operational excellence.
Through the article, Matz emphasizes the importance of prioritizing customer-centric innovation in financial services. It highlights how technology and strategic foresight drive sustainable growth and profitability in the sector.
Fewer Steps, More Customer Conversions
One of the most important factors for the quality of a good credit portfolio is the journey you implement in the operation. If you have a complicated application process, with many steps that are difficult for customers to assimilate, you will tend to create negative adverse selection. On the other hand, the less credit a person needs, the simpler the application process needs to be for this customer to be willing to apply. This is when new technologies, systems, and models come into play, as they are the enablers of this simplified journey. They also ensure all the necessary security in the process, creating the structures for an efficient decision.
Leveraging Macroeconomic Data For Risk Management
Well, I live in Brazil and we have a long history of economic instability, volatility and uncertainty, so in order to grow and prosper your operation you need to first understand the roots of these issues and then learn to manage them on a day-to-day basis. One of the strategies that has helped us a lot was, based on macroeconomic data, we were able to develop a robust model to forecast what the country's default rate trends will be for the next six to 12 months in different types of portfolios and thus adjust our internal strategy and risk appetite in a preventive manner.
“We Will Not Have That More Accessible Flow Of Money From Funds Than We Saw In The Precovid Era, So Operations Need To Have A Very Strong Focus On Generating Cash Flow, Net Profit And Returns For Their Shareholders”
In the case of C&A, we started an operation from scratch in December 2021 and today, we have more than 7 million customers in the base. This brought additional challenges, and I admit that so far, we have been successful in credit risk management and financial services.
Steady Cash Flow For Shifting Markets
One of the primary roles of a credit and banking leader is to understand the times and market movements. Equally important is the ability to steer the ship steadily, maintaining strategic stability while upholding firm principles and commitments within the defined risk appetite. In the coming years, we will not have that more accessible flow of money from funds than we saw in the pre-Covid era, so operations need to have a very strong focus on generating cash flow, net profit and returns for their shareholders.
Key Advice For Peers
It all starts with the customer. So, when you create or improve something, think about what you would like to have as a customer yourself and dedicate your time and energy to making the best possible solution, even if it doesn't exist or the market doesn't use it. Technology is a path, so use everything available to improve your processes and have the best people by your side to achieve it. With this in mind, never forget that an operation with lasting impact also needs to be consistently profitable so that what you are doing can grow and create value for as many people as possible.
