CRESUS Hub for preventive detection and coaching of the indebted

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CRESUS Hub for preventive detection and coaching of the indebted: We can break the spiral of overidebtness!

France
Project Stage:
Established
Budget: 
$250,000 - $500,000
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Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

We can break the spiral of overindebtness! Dedicated in the coaching of overindebted household since 1992, Jean Louis Kiehl created in 2009 a specialised and highly qualified hub, in a win-win pro-active partnership with lenders and creditors, to detect and coach indebted households before its too late.

About Project

Problem: What problem is this project trying to address?

216.090 overindebtness plans for 2013, out a total of 933.439 plans since 2008, and 6.000.000 scored as “fragile customers” in France. Most of these households have no assistance, and get into a plan too late (5 to 7 years of “denial” and misguidance). This lack of coaching and counselling leads 38,4% of the plans to failure. Moreover the true origins of overindebtness are badly known by the general public. CRESUS through a constant “whistleblowing” action, is fighting to impose a “Credit positive file”, and it will take years until it’s really effective. As pioneers and leaders of the preventive and proactive approach, we now face enormous growing challenges: informing, guiding and coaching more and more customers and partners.

Solution: What is the proposed solution? Please be specific!

What if all stakeholders of a indebted household could work together to detect and help him before it is too late? There are now 12 full time workers and 30 partners. Through a well chattered process, banks and insurances companies charge us to coach more than 14000 households. We developed our own CRM, methods and tools. The co-working and sharing our database with our partners allowed to capitalize our hard earned experience, and led to an efficient detection of “risky” profiles and better risk management. Only 43% of the in care households get into a plan, and even when they do so, the plan failure rate is only of 2% instead of 38.4%
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

Starting with one partner allowed us to get in touch gradually, with all the economic actors and actual partners. Each fragile customer transmitted by La Banque Postale Financement, through its debts, was the opportinity to challenge and improve our process on the run. The structural debt of these household became a contact opportunity with our would be partners. Our motto became “help those who help”, starting with helping overdebted household, dealing with the stakeholders in order to help their distressed customer, we ended up becoming one and helping other stakelhoders and the whole society dealing with the overdebtness problem.

Spread Strategies: Moving forward, what are the main strategies for scaling impact?

Co-working, networking, collaborative research and development, and involve as much stakeholders as possible in order to control the phenomenon of overindebtness and avoid uselles costs who could lead to massive systemic failure.
Sustainability

Marketplace: Who else is addressing the problem outlined here? How does the proposed project differ from these approaches?

83% of the debt instructed in indebtness plans are long term financiary debts, without credit registration, a lot of skills proper methodology and a dedicated specialised team to detect and coach over indebted households. Moreover over indebted households can’t afford counselling, and are high risks potential cost their creditors, and therefore are disqualified, by those having a classical business approach. Banque de France is in charge of instructing the plans on a strictly administrative way, they don’t have the means and posture to coach and support households or deal with the involved lenders in a preventive way. Other “social” or state structures face the same problem, and don’t have the integrated skills to deal with these household, whose situation are often too complex and won’t spontaneously call on them until it is too late. Classic debt recovery service are also late players,
Team

Team

There are now 12 full time workers and 30 partners who through a well chattered process, banks and insurances companies charge us to coach more than 14000 households. Our team is composed of former highly qualified bank/insurance worker and corporates who are formed to the specific Cresus method.
About the Lead Co-Creation Partners
Organization:
Laser Cofinoga S.A
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LEAD SOCIAL-MISSION ORGANIZATION
Type of organization (e.g. NGO, association, not-for-profit, foundation, social enterprise)

NGO

Total Number of Full-Time Employees

7

Lead Contact First Name

Jean Louis

Lead Contact Last Name

Kiehl

Title

President

Country

France

Twitter URL
Facebook URL
Website

www.cresus-partenaire.org

LEAD CORPORATE PARTNER
Organization Name

Laser Cofinoga S.A

Total Number of Full-Time Employees

>1000

Lead Contact First Name

Philippe

Lead Contact Last Name

LEMOINE

Title

Président-directeur général de LaSer

Country

France

Twitter URL
Facebook URL
Organization Website

www.cofinoga.fr

Basic Info
Project Starting Year
Primary European Country where this Project is creating social impact

, A67

Additional European countries where this Project is creating social impact
Select the category that best fits the type of your project:

New products & services: Entries in this category develop and offer essentials product and services that address needs currently unmet.

What awards or honors has the project received?

Prix Convergences 2015 (http://www.convergences2015.org/fr/Article?id=151) - Finalist of the schwab foundation

Project Summary
Co-Creation Model: Tell us about your main strategic partners and how the partnership truly create value. For each Partner please include its type (business/social/public), its name, a short description, its key motivation to participate in the co-creation project, and the key contributions it is making in the co-creation project. Please follow the format displayed below:

-Partner 1
Type of partner : business
Bank/Insurance company whose customers are facing financial and social issues (Exemple : LBPF, MAIF MACIF, LASER COFINOGA, BNPPF, COFIDIS, CACF…)
Key motivation to participate in the co-creation project
Better risk management, customer knowledge. Improved debt recovery and sustainable alternative for free willing customers, accepting financial chattered and processed coaching. Tax breaks and benefits, CSR politic and sustainable development R&D. Integrate skill improvement through training.
Key contributions in the co-creation project
Mutual process and products co-building trough regular operational update and reporting, services mirroring, financial support (annual basis support + ticket per customer transmission)

-Partner 2
Type of partners: business
Short description sentence:
Companies or institutions whose co-worker are facing financial and social issues (HSBC, Laser Cofinoga, Banque Carrefour, la Poste…)
Key motivation to participate in the co-creation project
Out-sourcing of financial and administrative of unique skills and expertise. Tax breaks and benefits, CSR politic and sustainable development R&D, answer for human resources (HSBC, Cofinoga, Banque Carrefour, la Poste…)
Key contributions in the co-creation project
Integrate skills improvement trough training and regular reporting, financial support (annual basis support + ticket per co-worker transmission)

Partner 3
Type of partner : business
Short description sentence: Companies or institutions whose products and services are needed by the cared households.
Key motivation to participate in the co-creation project
Out-sourcing of financial and administrative of unique skills and expertise. Interest for our database as Marketing study field for new product and services. Tax breaks and benefits, CSR politic and sustainable development R&D, answer for human ressources. (Example: Total, Renault, Bankin’…)
Key contributions in the co-creation project:
Integrate skills improvement trough training and regular reporting, discounts and needs matched products for the cared households. Financial support.

Partner 4
Type of partner: Public
Short description sentence: Institutions who are in charge of cared households.
Key motivation to participate in the co-creation project [Max 35 words/partner] Out-sourcing of financial and administrative of unique skills and expertise. Interest for our database for (CCAS, FDJ, social services)
Key contributions in the co-creation project: Integrate skills improvement trough training and regular reporting. Financial support.

Impact
Impact: What is the impact of the work to date? Also describe the projected future impact. Please specify using qualitative and quantitative data (e.g. # of indirect and direct beneficiaries); help us understand how this solution truly makes a difference.

Every coached household becomes a common success for everyone, and became a vibrant testimony of our impact. Our former successfull incared indebted are the best garantee for reknown, they even help us and get involved as changemakers. Even creditors are positively impacted economically and socialy
Societal Impact :
More people are able to improve their financial health (63-80% of Cresus beneficiaries are able to Sustainably overcome over-indebtedness)
Better knowledge and information of an ever changing problem, in order to aim and avoid resources wastes.
Strategic and pragmatic solution for former excluded households
Job creation and sense giving organization.
Economic Impact
Reduction of the number of nonperforming loans and better management of debt situations with clients
Responsible credit provider strategic co-building
Significant public savings linked to debt

Sustainability
Funding: How is your project financial supported? [select all that apply]

Individuals, Foundations, NGOs, Businesses, Regional government, National government, Customers, Loans, Investments.

Sustainability Plan: Has your project already reached financial sustainability? If not, what is this solutio’s plan to ensure financial sustainability? Do the main partners have enough stake to sustain the solution? If this project requires limited budget, how will other resources be secured to maintain or grow this work?

We work with our partner on an annual basis support + ticket per customer transmission. This allows us to control our work flow and ensure our sustainability. Our business model is actually safe and our biggest challenge is to perfect it, and face our structural development needs (new buildings, cost saving equipment, IT…). General economics is pushing us to a development plan, and we are far from reaching the climax of the "market" needs

Team
Founding Story: Share a story about the "Aha!" moment that led the Partners to get started and/or to see the potential for this to succeed.

It all began, with a meeting with former minister Christine Lagarde and Jean Louis Khiel in 2008, failing to impose a credit register, Jean Louis Khiel decided to get in touch with banks in order to find an alternative way to prevent overindebtness. The success of this first step toward creditors, became an astonishing and unique business model.
The CRESUS Preventive detection Hub and coaching service for fragile customers” project started in 2009. “Banque de France” instructed 130, 000 new indebtedness plans/year, for an average of € 41 K, 250 million € global losses. No credit registration existed and there was no alternative than “aggressive” debt-recovery. The original idea was to support households through high quality counselling, in a win-win proactive partnership with lenders. It all started with one partnership (LBPF) and one co-worker.

About the Co-Creation
Barriers: What main barriers may you have encountered to co-create during the creation and implementation of the project and how did you try to overcome them?

As pionneer and novative structure, we had first to face general scepticism, our courageous first partners where however contaminated by the enthousiasm of our leader and team. As experimental, we started small, but facing success our real challenge was to maintain high quality standards, coping with growing needs from our partners, and new ones appealed by our first successfull coachings. We had to create everything on the run, IT, structure and legislative environement. Resolve problematics about cultural gasp between banking and social ethics, bank secrecy and customer confidentiality. Had to adapt too the needs of our incared and partners, in order to cope without failing in a risky human and financial context. Moreover in 2009 we didnt have enough knowledge about who where the households who fitted in a preventive action. We had many doubts but couldn’t afford to despair.

Governance: What is the type of the relationship between the partners? (e.g. joint venture, contractual relationship, joint project...)

The type of relationship depends of the implication willingness of the partner. It often starts with a contractual relationship (e.g. : Intrum Justitia, Franfinance) , that then leads to co-construct joint project (La Banque Postale “Club Initiative” and “L’Appui”) and happens to get into joint-ventures (Dilemme).

Interaction model: How is the project a transformative partnership? How is the interaction transforming the partnering organizations and their employees/ leadership in terms of creating a new vision, new management practices, new skills and new organizational structures? Please provide for concrete examples

No support is accepted without trade or minimal co-working, thus to guarantee our independence and neutrality. And everyone in CRESUS, even the President, has its own portfolio of in cared households. We are proud of our hard earned skills and knowledge, and share it freely to whoever asks for our expertise about the subject. Moreover we are specialised and we only deal with indebtness. Our opening and willingness to share, allow partnering organization to share our bottom of pyramid point of view. We also encourage intensive immersive session for our partners managers and “abilities patronage” programs (3 Allianz Sopex).

How did you find out about this competition?

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