Catalin Rizea, TotalSoft: “In the first quarter, Charisma Financial Service had a 26 percent growth compared to the same period in 2022”

“Companies must adopt new technologies, but after careful consideration of the benefits they may produce. There are so many options on the market and the costs are not negligible. However, is crucial for any leasing or credit company to stay competitive, improve operational efficiency, and enhance the customer experience,” Catalin Rizea, Head of Financial Services Product Innovation TotalSoft told The Diplomat-Bucharest.

“The solution Charisma Financial Services developed significantly in the past years, fueled by the development of new projects for new and existing clients, and by implementing new features dictated by global trends and legislative requirements. The results are reflected by numbers, as we’ve increased our revenue from this sector by more than 20% for the past two consecutive years. And we’ve succeeded because the solution isn’t just another digital platform that automates front and back-office business processes; it creates value for the entire ecosystem – dealers, clients, or insurance brokers.”

What are the key elements at the heart of a customer 360 approach?

When referring to a customer 360 approach we primarily consider a comprehensive strategy aimed at gaining a holistic view of customers by aggregating and analyzing data from multiple sources. At the heart of this approach, several key elements play a crucial role in delivering a seamless and personalized experience to customers.

Firstly, data integration is a fundamental component of a customer 360 approach. Based on Charisma Financial Services, leasing and credit companies can gather data from various touchpoints such as credit history, customer interactions, financial transactions. By integrating this information, Charisma can help create a unified profile for each customer, providing a comprehensive snapshot of their financial relationships and behavior.

Secondly, advanced analytics and machine learning algorithms are vital for extracting insights from the aggregated data. By integrating a BI component in our solution, we can analyze customer behavior patterns, predict future needs, and identify cross-selling or upselling opportunities. These analytical capabilities enable institutions to offer tailored product recommendations, personalized financial advice, and targeted marketing campaigns, thereby enhancing customer satisfaction and loyalty.

Finally, a customer 360 approach necessitates seamless communication and collaboration across different departments within a financial institution. By breaking down data silos and facilitating cross-functional information sharing, Charisma Financial Services can enable a cohesive customer experience. This ensures that customer interactions, whether through digital channels or in-person interactions, are consistent and based on a deep understanding of the customer’s financial situation and preferences.

What are the latest TotalSoft innovations for the financial sector?

The solution Charisma Financial Services developed significantly in the past years, fueled by the development of new projects for new and existing clients, and by implementing new features dictated by global trends and legislative requirements. The results are reflected by numbers, as we’ve increased our revenue from this sector by more than 20% for the past two consecutive years. And we’ve succeeded because the solution isn’t just another digital platform that automates front and back-office business processes; it creates value for the entire ecosystem – dealers, clients, or insurance brokers.

One of our latest important developments was the new Charisma Web Origination solution. This platform automates end-to-end business processes specific to the financial domain and enables easy integration with third-party applications to provide a complete experience for both users involved in the approval process and end customers. Consequently, it ensures:

• 50% increase in the First-Time-Right indicator through a high degree of compliance with all processes in a lending company.
• Manual intervention reduced by up to 30% due to integrating actions of all actors involved in the financing approval process and real support for the sales teams, dealers, agents, or suppliers. The solution provides complete management of the funding flow from intent to contract, as well as full transparency through real-time monitoring of the application status, all with the aim of improving the end customer experience.
• Operational costs reduced by up to 50% – financial institutions and dealers can respond much faster to customer requests through a web interface hosted in the cloud. This interface facilitates the easy upload of all the necessary information for launching a specific financing request and instant transmission of a preliminary offer. Thus, based on customer identification data and details about the desired product, a financing simulation is performed, undergoing a series of validations carried out by both the sales representative, and the Risk & Compliance department.

All participants in the process are automatically notified, can see real-time changes in the status of the application, and can have a clear monitoring of performance indicators regarding response time and the number of resolved requests. The entire approval process is carried out in a single interface, which is very user-friendly for both dealers and other actors involved.

How should a company react to the growing number of new technologies?

Companies must adopt new technologies, but after careful consideration of the benefits they may produce. There are so many options on the market and the costs are not negligible. However, is crucial for any leasing or credit company to stay competitive, improve operational efficiency, and enhance the customer experience. Some specific steps to be taken are:

• Embrace digital transformation: evaluate current processes and identify areas where technology can streamline operations and improve efficiency. Explore automation to eliminate manual tasks, reduce paperwork, and enhance speed and accuracy in operations.
• Implement online and mobile platforms: adopt user-friendly online and mobile platforms to offer self-service options for customers.
• Use data analytics and AI: leverage data analytics and artificial intelligence (AI) to gain valuable insights and make data-driven decisions. Analyze customer data to identify patterns, preferences, and creditworthiness.
• Enhance customer engagement: use chatbots and virtual assistants to provide prompt customer support and assistance. Implement customer relationship management (CRM) systems to track customers, personalize communication, and improve satisfaction.
• Foster strategic partnerships: collaborate with technology providers to leverage their expertise and access innovative solutions.
• Monitor market trends and emerging technologies: stay informed about advancements such as machine learning, Internet of Things (IoT), and data analytics to identify opportunities for innovation and improvement.

What are the challenges for implementing effective, simple software solutions these days?

Implementing effective software solutions for credit and leasing companies can present certain challenges in the current business landscape. Firstly, credit and leasing companies operate within a heavily regulated industry, which can pose challenges when implementing software solutions. Compliance requirements related to data privacy, consumer protection, anti-money laundering (AML), and know-your-customer (KYC) regulations must be carefully considered and integrated into the software solution.

Secondly, as credit and leasing companies grow, their software solutions need to scale and adapt to accommodate increasing transaction volumes, expanding customer bases, and changing business needs. The software must be flexible enough to support new product offerings, handle complex lease structures, and integrate with additional systems or partners. Scalability and flexibility should be built into the software architecture to avoid limitations and costly redevelopment in the future.

Why should the financial-banking sector bet on TotalSoft solutions?

As I said before, Charisma Financial Leasing is more than a digital platform that automates front and back-office business processes, it creates value for the entire ecosystem:

• Proven end-to-end business practices – covering front-end business processes, through dealer portal, client self-onboarding, origination process, including automated approval decision, risk management, all the way to back-office processes and accounting.
• Flexibility – the company can either go for a more standard and straightforward product, or we can build together with us the solution fit for their strategic growth.
• Support in multiple languages – TotalSoft can assist companies in rolling-out the solutions to all subsidiaries, dealers, partners around the globe.
• Access to industry experts – ranging from TotalSoft’s internal knowledge to external strategic and technology partners. TotalSoft is not just about business or technical consultants or software developers or great solution architects. The team also includes specialists from the financial industry.
• Dedicated support services – great SLA that keeps the solution running smoothly. TotalSoft can also provide a dedicated team that can accommodate any new customer business model.
• Latest technology – TotalSoft deploys the latest technology (Cloud, Microservices, AI/ML, SaaS or Kubernetes) to scale up customer business.

What are your company’s most important ongoing digital projects?

Charisma Financial Services had an important impact on both the local market, where is the main software provider for leasing and credit companies, and the international market, having implementation projects in over 40 countries, from China to Brazil, North America, and Canada, as well as in most European countries. The Charisma Financial Services solution grew significantly in 2022, fuelled by the product investments, by the development of new projects for external clients, and by implementing legislative related reporting solutions such as IFRS and SAF-T.

In the first quarter of 2023, Charisma Financial Service saw an approximate 26% growth compared to the same period in 2022. This growth is due to the successful completion of large projects such as the one at Deutsche Leasing, part of the global IT modernization program – Phönixx, impacting 20 international branches.