Luuc Mannaerts, CEO of European On-line Lender October’s Netherlands Operations, Explains how Platform Helps SMEs

European on-line lender October has shared key insights from its Netherlands CEO Luuc Mannaerts.

Luuc, who earned his Masters in Enterprise Economics, with a specialization in Finance and Technique, reveals that when he was round 40 years of age, he went to INSEAD the place he accomplished the Superior Administration Program. Luuc says that he recommends everybody ought to do this across the center of your profession as a result of it helps you change into “sharp once more.”

Luuc additionally shared that he’s labored in banking for round 2 a long time. At first, he was targeted on the M&An area and labored with massive corporations, (most of which had been listed on a inventory change, in addition to with non-public fairness).

After that, he moved to the industrial banking sector, working carefully with massive corporations that had a  turnover of €50 – €500 million. In his final position earlier than October, Luuc served because the CEO at ABN Amro Business Finance (working carefully with many SMEs).

On this position, he recollects working with loads with information. He reveals that they developed an surroundings the place they’d use information to “objectively assess whether or not we might finance an organization – the fantastic thing about information is that it isn’t solely goal, you can even clarify to a shopper how you utilize it” and that really “introduced me to October,” Luuc revealed.

He added:

“The massive image is that now we have had three massive banks within the Netherlands for 25 years. They’ve round 80-90% of the market. That was impacted [considerably] by … 9/11 that triggered the necessity for the banks to safeguard us from terrorist organizations, sparking big extra duties, and therefore price, we name KYC and compliance. And that also continues.”

He famous that this led to lots of price chopping for varied banking operations. And in case you are a small agency, it’s “way more troublesome” to work with a banker, Luuc defined.

He identified that at instances, a financial institution could be considerably like “a black-box for an SME shopper.” And that may be irritating as a result of financing for a corporation is “like a very powerful uncooked materials for working your online business,” and that’s “the surroundings we’re in.”

He continued:

“Within the Netherlands, now we have a digital mindset. After I began October in 2018, SME firms have been fairly used to digital. What they actually favored about us, is you can strategy us digitally however we do give firms a name. We mix the tech with the human contact. This digital mindset already led to 2 unicorns within the fee service surroundings (Adyen and Mollie). And I’m positive we’ll quickly have one other unicorn.”

Whereas commenting on how these challenges would possibly differ from different nations the place October does enterprise, Luuc stated:

“During the last 25 years, in the event you have been an SME, and also you wanted financing, you’d flip round and go to your financial institution. During the last 10 years that has change into harder. And that’s a spot October fills in.”

He added:

“We solely have three banks within the Netherlands and now now we have had two disaster: a monetary disaster and the Covid-19 disaster. Dutch entrepreneurs understand that they want financial institution and non-bank financing subsequent to their financial institution. … And the distinction in NL is that the Dutch authorities is actively selling this. That is additionally the curiosity of the Dutch financial system to have a extra various panorama.”

Luuc additional revealed that initially of the Covid-19 outbreak, the federal government within the Netherlands realized that there’d be so many corporations requiring financing. That’s why they opened up their assure scheme “pretty shortly to non-bank financiers,” Luuc famous whereas including that they’re the primary non-bank “to get the license to offer assured financing,” they usually’re “actively utilizing that.”

He additionally talked about that within the Netherlands, they’ve “restricted entry” to monetary statements. In Southern Europe, we – as October – can “mechanically decide how a lot we are able to lend to an organization based mostly on a public register with monetary statements of all firms,” he revealed whereas noting that within the Netherlands they don’t have a register through which “all monetary studies of SMEs are registered and accessible in a structured and digital method.”

He additional defined that accountants can play a key position on this, as they’ve all of the monetary reporting in a “structured method of their possession.”

He continued:

“We’re working onerous to get entry to that with a device known as SBR Nexus (SBR stands for Customary Enterprise Reporting) the place accountants collectively with purchasers might unlock their studies immediately into our tech. That would actually be a recreation changer within the Netherlands.”

Whereas sharing what their goal/objective this yr is of their nation and what they’re specializing in, Luuc revealed:

“[We plan] to double the variety of purchasers we assist in comparison with final yr combining tech and the human contact. [We also aim] to simplify our merchandise much more in order that purchasers and monetary advisors can simply request a mortgage by means of our app and that we might in a short time give them a solution which is right in 95% of the instances. [Additionally, we intend] to develop our fame by means of a partnership with a financial institution and/or an accounting organisation (or each) to service SME firms even higher and sooner.”

Whereas commenting on a number of the good tasks, Luuc famous:

“We have been opened one month within the Netherlands, when a shopper known as Adaptive providers got here to us. It was the week earlier than Xmas. He was to take over the corporate earlier than the top of the yr. So we managed to boost the funds throughout Xmas. Earlier than we went to the Xmas week-end we put the undertaking on our platform and the Tuesday afterwards it was funded. That was the 28th and he had the cash in time.”

One other undertaking that Luuc talked about is a software program firm that’s “increasing internationally as properly.” He added that every one the colleges within the Netherlands, main and secondary colleges, “know the software program.” He says that it’s “stunning to see how it’s altering the life of scholars and their communication with academics, serving to them to be unbiased.”

He additionally famous that these are “stunning tasks that present how digitalization may also help our society and enhance the lives of many.”