Summary:
- LHV Bank employs over 180 people and has approximately 50 000 active clients
- Before implementation companys main requirement was ability to integrate financial accounting and full cycle process of hire purchase for retailers
- During the first year over 16 000 contracts in volume close to 10 million euros were issued and administrated using new program
About LHV Finance
LHV Finance is a subsidiary of LHV Bank which provides hire-purchase services for retailers.
LHV Bank is based on Estonian capital and established in 1999. The banks clients are private customers as well as small and medium-sized companies and institutional investors. The branch offices of LHV Bank are located in Tallinn, Tartu, Riga, Vilnius and Helsinki. LHV Bank employs over 180 people and has approximately 50 000 active clients.
LHV Bank is one of the largest brokers on NASDAQ OMX Baltic stock exchanges and the largest broker for Baltic retail investors in international markets.
In 2013 LHV Finance started new business and needed solution which would be mature, proven and fit company needs. Good previous experience with OIXIO (prev. Columbus Lietuva) solution for Leasing helped to create clear vision: OIXIO Leasing | Loans is the right product for LHV Finance and will bring many benefits in financial company processes management.
Business challenge
After LHV Finance was founded need for special software solution appeared. The main functional requirement was ability to integrate financial accounting and full cycle process of hire purchase for retailers, starting from contract posting to system and ending with contracts expire or termination.
LHV Finance was established in January 2013. In April the hire-purchase product and information systems which are necessary for issuing and administration of hire-purchase products were completed and first contracts were signed. In May the company launched hire-purchase service in all Euronics chain (19 stores), starting from June – step by step in other stores, total number of stores is more than 100.
Solution description
OIXIO Leasing | Loans is specialized add-on for leasing companies based on Microsoft Dynamics NAV, created for leasing activities management and integrated with NAV financial accounting. The add-on supports full business cycle from contract offer to its ending procedures.
In this implementation standard OIXIO Leasing | Loans solution has been adopted to fit special business requirements of LHV Finance and scope of the solution covers:
- Leasing schedule calculation specifics of hire-purchase product, adjusted for financing of small retail items (phones, TV, fridges etc.)
- Leasing specific data exchange basis via web services
- Contract operation procedures, adopted for high volumes of contracts: regular invoices creation and their delivery by email, regular post or e-invoice channel, finance charges calculation, contract amendments
- Contact ending procedures: natural expiration, early buy-out with possibility to split components between customer and third party, asset repossession
- Document management functionality: documents preparation, printing, saving to *.pdf in prior defined sets
- Debt management tools: reminders creation and delivery by email or regular post, debt tracking reports, integration with credit registries
Project results
- Hire purchase product launch on time. Having in mind big scope and sophisticated schedule of the project, launch on time is great achievement
- During the first year over 16 000 contracts in volume close to 10 million euros were issued and administrated using new program. Many automatic solutions were created to accomplish that. Within 1 year LHV Finance became one of the biggest hire purchase provider in Estonia.
Indrek Kaljumae, Software Development unit Manager feedback
As LHV Finance started new business, we needed solution which would be mature, proven and fit our needs. As we had previously good experience with OIXIO solution for Leasing, the vision was quite clear: OIXIO Leasing | Loans is the right product for LHV Finance.
OIXIO Leasing | Loans was the exact solution that we needed in order to start with Consumer Factoring as fast as possible and with minimal risk.
OIXIO has proven its high expertise not only by building one system but two (Leasing and Consumer Finance) for LHV and we consider it as no coincidence rather a proof of their high level competence in IT and finance industry.
OIXIO can definitely be considered as a reliable, competent and highly conscientious partner, especially when you get the luck to work with Egidijus Plynius and Aušra Urbonienė as their competence and understanding of client needs and problem solving is beyond your expectations.
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