Following an acquisition by the Finclusion Group, South African lending company GetBucks (available on Mintos since 2018) has changed the name of its legal entity to smartadvance on January 1 2021. The change in name will not affect the business’s operations, its rate of returns on Mintos, or any investors’ investments.
In a Q&A below, the lending company now known as smartadvance shared its reasons for the change.
Was there a need to change the name of the legal entity?
“Yes, definitely. Following the acquisition of GetBucks by the Finclusion group in Q4 2019, there was no relationship with the MyBucks Group (the entity’s previous owner) anymore so that necessitated a change of branding. The Board made the decision to rebrand the business and rename the legal entity to smartadvance to reflect both our independence and our focus on responsible lending.”
Will there be any regulatory changes?
“No. The licenses granted by the National Credit Regulator (NCR) are at the entity level and no approval is required for a brand or name change. We have informed the regulators of the change only as a matter of courtesy.”
Is there any impact on the management and employees as a result of the change?
“None at all. The management team that was brought in to lead the business following the acquisition by Finclusion remains in place.”
Is there any change in the rates you plan to offer investors on the Mintos platform?
“Like any other company that places loans on the Mintos platform, we want to achieve a balance when it comes to the interest rate, so that both our company and investors on Mintos are satisfied. In this regard, it is quite difficult to predict the rates in advance. It can be guaranteed that our offer will be such that it would meet the needs of investors in terms of their risk/reward ratio without compromising our proposition to our clients.”
What has been the impact of Covid-19 on the portfolio?
“While demand in the South African market fell during the middle of 2020, we have been fortunate that the impact on our business was significantly less than that of providers with brick-and-mortar distribution, as a result of our digital channels of operation. We’ve adapted our lending criteria to account for the changes in consumer behavior, and have seen the benefit of this in improved collections performance relative to the whole industry over the same period. We continue to apply a slightly conservative, but also pragmatic approach to our risk assessment. From the perspective of our people, the majority of our team (85%+) has continued to work remotely, with only the senior management team coming into the office if required.”