A profitable market that demands specialization

The Italian market offers attractive growth margins. The low interest rates in recent years have driven steady growth, but the Italian market is still less mature than other European countries where consumer credit has achieved greater penetration.

While the restructuring of Italian retail banks and the closure of many bank branches have reduced distribution partnership opportunities, they have, on the other hand, opened up new space for niche players to expand their direct local presence. 


The 2019-2023 strategic guidelines

Over the next few years, we will draw on our distinctive qualities, to make full use of every opportunity arising from shifts in consumer habits and industry trends. We will continue increasing volumes and revenue while keeping portfolio risk under control.

Achievements in 2016-2019
Over the term of the 2016-2019 business plan, we:

  • confirmed our leadership in Italy;
  • expanded the distribution network with 35 new openings (including 27 agencies) and launched the online distribution platform;
  • confirmed our focus on value as a priority, with growth in revenue and, especially, a sharp improvement in profitability. Over the course the plan, the ROAC rose from 17% to 30%.

Our mission for 2023: seize new opportunities, grow and innovate
As it consolidates its position and seizes the opportunities generated by both changes in consumer habits and the potential of new technologies, Compass will advance on its steady, long-term growth trajectory.

P11 Obiettivi Compass EN

Strengthening direct distribution
Developing direct offline and online distribution channels will remain a priority over the next few years. Entrusting distribution to third parties is progressively becoming less cost effective and more uncertain due to the smaller number of traditional branches and the concentration of the banking industry. In this context, direct distribution is more stable and sustainable in the long term, guaranteeing greater profitability and more control over risk assumption.

Our plan hinges on:

  • proprietary branches, which are vital for business growth because the value that they generate by new loans is roughly twice that generated through third parties;
  • the agencies operated under the Compass brand, which for customers is like a proprietary branch although they are managed by an agent, enable us to maintain a flexible cost structure. Our agencies boast high productivity with substantially the same margins and cost of risk as our branches. We are also proud to frequently entrust these agencies to employees ready to strike out on their own in the business world. They gain an exciting career change and we gain trusted agents with a proven track record;
  • the launch of a network of 80 Compass Quinto agencies specialized in salary-backed loans;
  • the digital and web platform.

We are also driving the integration of online and offline distribution to encourage collaboration between the various customer assistance channels.

Compass direct franchise trend

P12 DistribuzioneDiretta EN

The expansion of e-commerce to the preference for renting over buying are transforming consumer habits. Over the term of the plan, Compass will develop new distribution channels and new products, including through partnerships, to reach new customers and retailers.

Innovative products:

  • the closed-loop credit card: Compass and Mastercard have designed a revolving credit card that consumers can use to make purchases with one specific retailer only. Developed with major retailers, promotes customer loyalty;
  • Compass Rent: an innovative long-term car rental service.

Online personal loans:

  • we are putting the finishing touches on our instant lending project to bring the time-to-yes down to an hour at most.

BNPL (buy now pay later), instant credit and e-commerce financing:

  • partnerships with major e-commerce players to offer financing solutions;
  • new apps for free, instant credit for customers, which they may use to shop at our partner stores;
  • an avant-garde instalment payment solution platform integrated into retailers’ e-commerce check-out.


The financial targets in the 2019-2023 plan

By 2023 we plan to:

  • increase disbursements to roughly €8 billion, with a CAGR of 2% and a substantial increase in directly distributed personal loans, which will account for 67% by 2023;
  • boost revenue to over €1.1 billion, with a CAGR of 3%;
  • increase lending to over €14 billion, with a CAGR of 2%;
  • maintain steadily strong profitability, with a ROAC in the range of 28 to 30.

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