Kreditech Group’s subsidiary, LLC MFC "Kreditech Rus", received the status of a Microfinance Company (MFC) on March 27, 2017 from the Central Bank of Russia.
A new federal law in Russia aims to make the microfinance market transparent and understandable. It therefore requires the MFC status for all alternative lending companies operating in the country. As a Microfinance Company, Kreditech Russia is going to offer both consumer credit and deposit products.
The Central Bank of Russia issues this status on a very restrictive basis. Kreditech is one of the few companies in the market to have successfully completed the process. The status is - among many other factors - based on Kreditech’s strong capitalization, risk management, governance, prudent financial policies and strong owner support.
Rene Griemens, CFO of Kreditech said: “We are very proud to be amongst the exclusive group that was granted the status as a Microfinance Company in Russia. This is an important milestone for the whole Kreditech Group, confirming the trust in our business.” Director of Kreditech Russia, Dmitry Selivanov, added: "The MFC status allows us to further grow the business while improving borrowing conditions for our customers and offering them better products going forward.”
Kreditech Group launched its Russian subsidiary in 2013 and was operating under a "MicroFinance Organisation" (MFO) licence prior to achieving the MFC status. The Group has to date processed four million loan applications through its five subsidiaries, including Russia. It generated an origination volume of EUR 125m in 2016.