CRESUS Hub for preventive detection and coaching

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CRESUS Hub for preventive detection and coaching: CRESUS Hub for preventive detection and coaching against overindebtness

STRASBOURG, FranceFrance
Year Founded:
2009
Organization type: 
hybrid
Project Stage:
Established
Budget: 
$250,000 - $500,000
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 over indebted 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 risky households

WHAT IF - Inspiration: Write one sentence that describes a way that your project dares to ask, "WHAT IF?"

What if all stakeholders of a potential overindebted household could detect him and work together, to help him before it is too late?
About Project

Problem: What problem is this project trying to address?

216.090 indebtness households for 2013, out a total of 933.439 households 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 and stakeholders.

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

CRESUS through a constant “whistleblowing” action, is winning this year its fight to impose a “Credit positive file”, but it will take years until it’s effective, and can't be the unique answer to the overindebtness growing problem. As pioneers and leaders of the preventive and proactive approach, we now face enormous growing challenges: informing, guiding and coaching an evergrowing nomber of incared with companies and institutions. There are now 12 full time workers and 30 partners. Through a well chattered process, business as banks and insurances companies charge us to coach more than 14000 households. 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.

Impact: What is the impact of the work to date? Also describe the projected future impact for the coming years.

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

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

Financial Sustainability Plan: What is this solution’s plan to ensure financial sustainability?

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

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, proper methodology and a dedicated specialised team to detect and coach indebted households. Indebted households can’t afford counselling, and are high risks potential cost their creditors. 6 million concerned households in France, whose situation are often complex and won’t spontaneously call on help them before it is too late. These households are usually detected 210 days after the first unpaid payment, concerted action and dataminig allows us to detect them before unpayment.
Team

Founding Story

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

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.