FIMBank expects factoring use to soar in developing countries

09/04/2009

Speaking to Malta Business Weekly,FIMBank president, Margrith Lutschg-Emmennegger, says that the use of factoring products and services is growing by 80% in some developing nations.

Despite the recession that has hit the global economy, she says that some niche areas are flourishing and that factoring is one such area. She adds that her bank plans to exploit this by offering factoring services.

She says, “factoring remains the fastest growing product in trade finance. Global trade finance volumes are declining as a result of the crisis, but this affects more the developed economies and China in particular.”

Lutschg-Emmennegger says that her bank’s niche markets, such as factoring, show resilience to the economic slowdown and that some large European Banks are being consumed by the economic crisis.

She states, “FIMBank’s niche markets show resilience and the retrenchment of some key competitors such as large western European banks, which need to focus on their domestic problems are a typical example, created several opportunities for FIMBank in these markets.”

Lutschg-Emmennegger says staff numbers at FIMBank have trebled over the past six years and adds that it plans to continue to grow, but maybe at a slower pace.