Nordic Market Overview, H1 2022

Market overview:

A new normal doesn’t really seems to be kicking into our world as the pandemic situation and its uncertainty was replaced by the terrible and unacceptable Russian invasion of Ukraine.

With uncertainty in the financial markets comes risk and with risk comes a more reserved position for longer agreements. As we see it and what we noticed we are up and running with 12-24 months agreements now but with a clear clause to be able to terminate that agreement if dramatic market conditions change can be recognized. The deal pipeline in the Nordics regarding both Telecom and Bank & Finance is on really high levels and some really great opportunities have been available the last months and it seems to be more coming.

In Sweden we noticed from both debt collection industry and creditors that January and February had lower collection rates than expected after a positive finish of 2021. We monitor that development closely now and are looking for positive effects as the society is opening up more and more. However, with increasing prices for fuel, food and logistics we see that the economic margins for consumers are on lower levels than earlier which also effects the possibility to collect on NPL portfolios at the moment. In Finland, legal collection is looking much better after the Covid moratorium has ended but also here we are calculating with having challenges to get people to start their journey to get debt free due to the fact that they have lower economic margins. Norway is keeping up a good collection rate and we are looking closely on interesting deals for the future but also in close contact with authorities to see how they will comment on how Norway will follow some EU-directives or not that could have effect on our type of business. Denmark is showing up positive trends and the deal pipeline for Denmark have been very interesting the last 6 months and new things are coming as well.

Last Nordic Market Overview published we highlighted the fact that consolidation in the Nordic market were around the corner. Modhi and Kredinor later announced that they will join and be an interesting alternative on the debt purchasing market. Our type of business is in constant change and it is always interesting when new players enter the field, tough competition makes you step up! Most likely there will be more news about collaboration and consolidation coming during 2022 and probably also new players entering the market.

Please feel free to contact us for more dialogues and opportunities around the Nordic NPL market.

/COO, Johan Gustafsson, Stockholm 2022-04-12