Business model and strategy

Resurs is a leading supplier of products involving payment solutions, consumer loans and niche insurance products across the Nordic region. Offering a positive consumer experience and maintaining a high degree of innovation is crucial to the strategy. Resurs seeks to combine profitable growth with consistently having the most satisfied retail finance partners, customers and employees.

Business model

The core of Resurs’s business model is the retail finance solutions offered to retail finance partners. Attractive financing solutions in both offline and online stores build loyalty and increase the repurchase rate. Surveys show that sales growth for retail chains in Resurs’s partner network, which thereby apply Resurs’s payment solutions, is significantly higher than the sector average. Consumer value is also created through higher purchasing power and opportunities for flexible repayment options.

After 40 years of operation, Resurs has forged a leading position in the Nordic consumer credit market. A large customer database provides opportunities for cross-selling other offerings, such as credit cards, consumer loans and insurance products. Resurs’s funding largely consists of customer deposits and equity, and is now being broadened through a range of financial market activities.

The business model stands on three pillars: Payment Solutions (comprising Retail Finance and Credit Cards), Consumer Loans and Insurance. Major synergies are created between the three business segments, mainly through targeted offerings to the consumers in Resurs’s database.

Since Resurs is a service provider, motivated employees are crucial. Their efforts and commitment are the backbone of daily procedures, and enable continuous evolvement of the business model. This structure represents Resurs’s operational excellence and is a key element of the strategic plan.

Resurs has adopted the following five strategic focus areas that successfully drive the business model:

Development of retail finance partners

The continuous development of partnerships benefits both Resurs and the Group’s retail finance partners. Resurs listens carefully to the needs of its retail finance partners, and then customised solutions are jointly developed. This generates mutual benefits, and also builds loyal customer relationships. Resurs creates retailer value by driving sales, and by supporting both physical and e-commerce sales.

Examples include digital credit applications for physical stores, the Loyo loyalty app that retail finance partners can use for their own loyalty programmes, and continuous efforts to develop an e-commerce checkout solution. Because it was founded by retailers, Resurs has broad knowledge of retail compared with other traditional banks and finance companies.

Consumer experience

A positive consumer experience across the entire value chain is essential for Resurs’s business model. It should be easy to make a payment, easy to choose a payment method and easy to contact Resurs.

The experience of flexible terms combined with a high level of service creates not only repeat customers, but also more customers because of recommendations. Resurs also intends to continue digitising all customer processes, without compromising the customised offering to customers and partners.

Innovation

Resurs is, and will remain, an innovative Group. This applies to both financial products and the technical infrastructure for customers, retail finance partners and internal processes. Innovation is closely linked to partnership development. Resurs’s proprietary credit card (Supreme Card), a wide range of deposit methods and optional extras for travel insurance are some examples of historic successful innovations.

Loyo Pay, the mobile payment app, was completed in 2016 and is now ready to roll out for retail payments, as one of the first payment apps in the Nordic market.

Cross-selling

Resurs now has 2.5 million active customers across the Nordic region, and most these come from Retail Finance. It is essentially this customer base that is subject to the offering of additional products and services.

The database contains information about the customers’ credit card usage, payment patterns and credit history, thus facilitating the assessment of potential interest in various products, services and level of risk. However, the positive experience from the existing customer relationship is crucial to Resurs’s ability to successfully follow up with cross-selling.

Nordic focus

Resurs operates in markets throughout Sweden, Norway, Denmark and Finland. Several Nordic acquisitions have been implemented, including the credit portfolios of Dan-Aktiv, Finaref and Ellos, and yA Bank in Norway.

Resurs has extensive experience in these markets; the company was actually active in the markets before the acquisitions, and has a deep understanding of consumer credit behaviour. The Nordic market is attractive because it is large and still growing. Resurs is therefore focusing on the Nordic region for continued organic growth.