Reducing risks and improved ratings
Back-up Servicer enhanced flexibility
Leading rating agencies such as Moody’s and Standard & Poor’s confirm that backup servicing is a fundamental part of assessing the risk quality of asset-backed securities portfolios.
As an originator, your aim in selling your receivables is to convert balance-sheet assets into liquidity while reducing risks and costs by means of recognized sale of assets. As an investor, by acquiring ABS papers you can open up new asset classes and make opportune investments in line with your preferred risk and yield targets.
Securitized receivables portfolios are extremely complex in structure owing to the numerous elements. The waive of back up servicing can be an expensive disadvantage for all concerned. In receivables sales, reduction of operating risk has a positive impact on your rating as the potential originator or investor, and thus enhances the attractiveness of the ABS portfolio.
Service Portfolio of Arvato Financial Solutions as part of a back-up servicing structure
- Customized receivables
- Payment processing
- Multilingual customer care
- International reminder
- Repossession and sale of collateral
- Long-term monitoring
- International network
- Portfolio analysis and
- Purchase price calculation
- Regular audits
- Proactive credit risk
Successful review of BFS finance GmbH, an Arvato Financial Solutions company, by rating agencies Standard & Poor’s and Moody’s as service provider independent of the issuer:
»We have conducted an on-site review of BFS finance, to assess its operating capacities and the viability of its transition plan. Based on this review, we consider that the setup effectively mitigates the operational risk associated with a servicer-insolvency and servicer-transition scenario.«
Standard & Poor’s
Safeguarding the securitization of receivables
The length of a period lacking adequate receivables management, which could be provided at any time by an impartial third party – the back-up servicer –, directly impacts on the loss level of your portfolio.
Thus, we offer you the opportunity to set up a service level tailored to your needs. Prompt activation “hot” or activation after a specific number of days or weeks “warm” can be implemented at any time. As your back-up servicer we supply you with the ongoing services of our qualified staff from standby to activation.
You have permanent transparency concerning your portfolio thanks to the provision of modern IT systems which can be customized to your processes and requirements. We prioritize your process, data management and reporting specifications in IT development.
Arvato Financial Solutions, a Bertelsmann company, supports you as a back-up servicer by taking over the management of securitized receivables and mitigating the risks associated with your ABS structure.
Rely on our decades of experience as an impartial, internationally operating service and financial service provider in the field of risk and receivables management.
In addition, we have been assessed by rating agencies Standard & Poor’s and Moody‘s as a reliable and solid business partner. As a financial service provider with integrated factoring department (receivables purchase), we undergo permanent monitoring by the German Federal Financial Supervisory Authority (BaFin).
Qualified staff throughout all periods
- Entry and documentation of process and IT requirements
- Implementation of IT system including setting up of interfaces
- Setup of multilingual Web-based communication tool for inspection by customers and debtors
- Provision of qualified staff and customized IT infrastructure
- Ongoing testing
- Regular testing of processes and interfaces, updating if necessary
- Service partner management