Exploring the NPE Market's Future in Italy: An Event Led by QUALCO

On May 30th, 2024, QUALCO hosted its first-ever Credit Market event in Italy at the Sheraton Diana Majestic in Milan. "The NPE Market Between Challenges, Opportunities, and Innovation" event brought together leading professionals from the Italian credit industry to discuss the current challenges, emerging trends, and future opportunities in the market.

The conference began with an introductory greeting from Marco Cozzi, QUALCO's Country Manager for Italy, highlighting QUALCO's dedication to driving innovation and excellence in the credit management industry. Distinguished Italian economist, Director of the Observatory on Italian Public Accounts and a former director at the International Monetary Fund, Carlo Cottarelli, delivered the keynote speech.  

Cottarelli provided an in-depth analysis of the Italian and international macroeconomic landscape and discussed the current challenges in achieving sustainable economic growth, the implications of growing public debt, and the need for structural reforms. He concluded that Italy must implement effective policies to address demographic challenges, enhance productivity, and foster economic growth.

Current Market Dynamics and Future Trends 

Following the keynote speech, a roundtable discussion was held, moderated by Marco Cozzi. The panel featured Carlo Cottarelli, Director of the Observatory on Italian Public Accounts, Gianluca Pompili, Head of Credit Management at BPER, Enrico Cantarelli, Managing Partner at Phinance, Stefano Sagripanti, Board Member of Europa Factor and Chief Investment Officer of Credit Factor and Roberto Maffioletti, Director of Deal Advisory at KPMG.

The discussion began with an overview of the market's evolution, highlighting the challenges and opportunities the secondary market faces. The panelists noted the progress Italian banks have made in reducing NPLs and emphasized the need for continued improvement and the emergence of new market players. They also recognized the untapped potential of the secondary market, stressing that balancing prices and regulatory reforms are essential for growth. 

Key discussion points included: 

• Managing Non-performing Loans (NPLs): The importance of servicers adopting advanced technologies like machine learning and artificial intelligence to maintain efficiency. Integrate technology in business operations is crucial for precise and personalized credit management. 
• Specialisation & Reorganisation: The need for industry specialization and reorganization through mergers and acquisitions. Process automation and advanced data analysis are the key to improve efficiency and decision-making, considering that future success will hinge on specialization and technological innovation. 
• Changing Role of Banks: The evolving role of banks in managing problematic credits, noting a shift towards outsourcing and joint ventures to enhance efficiency and specialization. Early warning systems and prevention efforts to avoid defaults, with banks needing to focus on core activities and leverage partnerships for effective credit management.