Additional Channels to Market
04 August 2008
MCB Finance Group plc (‘MCB’ or the ‘Company’), the consumer finance provider serving the growing markets of Estonia, Latvia, Lithuania and Finland, announces it has entered into three further distribution partnership agreements that provide additional channels to market its Credit24 products in Estonia, Latvia and Lithuania.
The first two agreements, with R-Kioski in Estonia and Lietuvos Spauda/R-Kioski in Lithuania, enable customers to identify themselves and apply for Credit24 loans at strategically located convenience stores throughout Estonia and Lithuania. R-Kioski, which trades under the Lietuvos Spauda brand name in Lithuania, is one of the largest convenience store groups in the Baltic states and Finland, and MCB will consider further expanding the relationship with R-Kioski in due course.
MCB has also entered into an agreement with BTA, the largest non-life insurance company in Latvia. Customers can now apply for Credit24’s standard loans, as well as receive sales financing for certain insurance products purchased from BTA, at more than 100 BTA branches throughout Latvia. Together with the Company’s existing partnership with the Latvian Post, this agreement gives the Company extensive coverage in Latvia.
MCB’s primary distribution channel remains its Credit24 branded websites in each country. These latest distribution partnerships further expand the Credit24’s brand reach and visibility, support new customer acquisition, and allow the Company better to serve those customers who prefer a face-to-face interaction when applying for credit. Applications are made under the Credit24 brand, and are managed by MCB’s proprietary credit extension and CRM systems, and customer care teams.
Rami Ryhänen, Chief Executive of MCB Finance Group plc, said: ‘Our decision to enter into these agreements follows careful market research in which we established that R-Kioski and BTA are very well suited to our demographic markets. These important and valued new relationships allow us further to improve the level of service and flexibility we provide to our customers.
‘This latest expansion widens our addressable markets while at the same time strengthening the Credit24 brand. We will continue to build on this by identifying further opportunities to provide shareholder value.’
MCB will provide a further, more detailed update at the time of the Interim results in the first week of September.
Further information:
| MCB Finance Group plc: | |
| Rami Ryhänen, Chief Executive rami@mcbfinance.com |
+372 5300 8332 |
| Henry Nilert, CFO henry@mcbfinance.com |
+358 451 370 065 www.mcbfinance.com |
| Media enquiries: | |
| Allerton Communications: | |
| Peter Curtain / Jennifer Thomas | +44 20 7812 6477 |
| Nominated Adviser: | |
| Libertas Capital: | |
| Jakob Kinde | +44 20 7569 9651 |
| jk@libertascapital.com | |
| Chris Ennals | +44 20 7569 9664 |
| chris.ennals@libertascapital.com |
Notes to editors
MCB Finance Group plc is a consumer finance company providing fast, convenient, easily understood and flexible credit solutions under the Credit24 brand name to retail customers in Finland and the rapidly growing Baltic countries of Estonia, Latvia and Lithuania (the Fenno-Baltic Region). Loan products are designed to suit customers' needs with simple and transparent terms and flexible repayment schedules. Loans are offered online through the Company's Credit24-branded websites in Estonia, Finland, Lithuania and Latvia, as well as through certain distribution partners. The Company currently provides unsecured loans between €100 and €2,000 to qualifying customers, with maturities ranging from one month to two years.
The markets for unsecured consumer credit in the countries where the Company operates are relatively under-developed and experiencing rapid growth. Since launching the business in late 2006, the Company has become one of the leading participants in the non-standard lending market. This segment is typically under-served by larger financial institutions, and attracts customers who value the flexibility and simplicity of the products offered.