The target clients of Erste Financial Services GmbH (EFS) include global wind-down institutions and banks with internal restructuring units seeking to enhance the flexibility of their processes and infrastructures as well as institutional investors looking for alternative investments in view of persistently low interest rates.
Wind-down institutions and banks with internal restructuring units are challenged to wind down non-strategic and high-risk portfolios. This requires the retention of well-trained and motivated people as well as IT systems that can handle the constantly changing global regulatory requirements. By drawing on the comprehensive migration experience of a portfolio servicer such as EFS, client institutions can convert fixed and personnel costs into variable expenses which reflect the progress of the portfolio wind-down. This, in turn, helps reduce administrative expenses and operational risks.
Credit products are an asset class that is becoming more and more appealing to institutional investors such as insurers, pension funds and investment funds. This is evident, for instance, in the fact that investment funds increasingly invest in non-strategic credit portfolios sold by banks. Insurers are showing growing interest in alternative investments such as project financings. EFS gives these investor groups access to such new asset classes at low fixed costs and without the usually required investments in systems and resources.
Proven Partner of EAA
Our close partnership with EAA dates back to 2009. Today, we provide EAA with services such as the administration and processing of credit and capital market products, regulatory reporting as well as serving borrowers and other contractual partners. The fact that a comprehensive trading book was transferred to a wind-down institution for the first time in 2012 deserves special mention.