Equiniti Riskfactor and efcom announce new partnership


Last month Equiniti Riskfactor and efcom announced their new partnership. Both companies are dominant leaders in software solutions for the factoring industry in their respective countries, the UK and Germany, and both have a global reach.

BCR caught up with Aaron Hughes, Managing Director at Equiniti Riskfactor and Daniel Huszar, Head of Sales at efcom during the recent FCI conference in June to find out more about how their new partnership will work.

Equiniti Riskfactor, based in the UK, provides automated risk monitoring capabilities to lenders using unique algorithms and its software is used by 90% of the UK’s receivables finance industry.

efcom, based in Frankfurt, is a specialist factoring software provider helping lenders to streamline their data processing and has a dominant market position in Germany, Austria and Switzerland.

Both companies have in fact been cooperating for several years. What is different now is that “the partnership will formalise our long-standing relationship,” according to Aaron. As he explains: “We will be working closely together to strategically address certain markets. efcom’s credentials are undoubted by the local players and their reputation is held in high regard. What we want to do is partner with firms of that calibre in specific areas, so that we can take our product to market more easily and efficiently.”

He adds: “we are working with efcom because they have excellent local client relationships and can conduct business in the local language.  This is a true reseller agreement in which both parties get rewarded.”

For efcom the rationale for the partnership was very clear. Daniel explains: “Equiniti Riskfactor has always been a unique player in the market. efcom has a very similar market leadership position, and an excellent reputation. We too have risk capabilities in our system, but what EQ Riskfactor really adds is a visualisation aspect on a portfolio basis. We offer an in-depth view already, for example, invoice tracking, fraud detection, risk assessment and mathematical modeling. However, with EQ Riskfactor we gain the ability to have a portfolio view as well as a client view.”

In addition, Aaron points out that while EQ Riskfactor’s core competence will remain risk management, the company is now investing in new functionalities such as due diligence.

Both parties see the potential of operating in the highly regulated German market. efcom must deal with a high level of detail and granularity in order to comply with regulations, which of course is great for risk management. As Daniel says: “The more data you have to crunch, the better the predictions you can make with past, present and future models.”

The high degree of regulation in Germany is having a major impact now as Aaron explains: “The sheer amount of regulation imposed on the German market has created a situation where, although the market is growing in terms of invoices processed, the number of players is contracting. The cost of regulation has caused and even driven consolidation. Our joint proposition helps to support such a market.” The skills and expertise that these two companies collaboratively provide puts them in a prime position to satisfy the needs of this fast changing market.

Daniel adds: “With the help of technology we make it possible for the experts and risk managers to work on the most urgent cases, thereby allowing them to use their time more efficiently and to make the best possible decisions.”

The partnership between these two companies took time to set out in detail. Now that the time for talking is over, they have, as Aaron says, a large list of goals to achieve together.