CapitalBox
Business strategy for online lender in the Netherlands
Introduction
Background
CapitalBox is a business lending platform for Multitude that provides financing to Small and Medium-sized Enterprises (SMEs) through credit lines and installment loans. The entire process is digital, allowing SMEs to receive the necessary funds within minutes of approved applications.
CapitalBox is a part of Multitude, a Nordic company that is listed on the Frankfurt Stock Exchange. It is a fully regulated growth platform that has achieved success in the FinTech industry. With over 700 employees from 40+ nationalities across 20 countries, their vision is to become the most valued financial ecosystem.
Recently, a new management team took over CapitalBox with a strong focus on growth and profitability. Helping SMEs in the Dutch market, in addition to their already successful proposition in Finland, Sweden, Denmark, and Lithuania.
CapitalBox has requested Momentum to clarify the business strategy for the Netherlands, which will serve as a stepping stone for hiring a Country Manager, a Head of Partnering, and a Head of Direct Sales. Additionally, Momentum has been asked to assist the Country Manager in executing the roadmap during the initial stages, if and where needed.
“Momentum has delivered a solid business strategy for The Netherlands, providing invaluable support and helping with its execution. They are fully committed and were able to not only provide a strategic approach, but also make it practical, thus boosting our execution.”
strategy
Business strategy for the Netherlands
Capitalbox is active in five European countries: the Netherlands, Sweden, Finland, Denmark, the UK, and Lithuania. Despite having acquired Spotcap in October 2020, the Dutch market is not growing as fast as other European markets. The new management team of CapitalBox has requested Momentum to bootstrap its proposition and go-to-market approach for the Netherlands.
Within a one-month period, we assessed the current situation and suggested no-regret moves that the team could implement immediately. We polished the positioning, product-market fit, risk profile, organization, sales & marketing, and technology. We created a budget (forecasted P&L for the Netherlands) and a roadmap (plan for the next year and actions for the next quarter).
Relevant service
Digital StrategyResults
Impact realization through initiative execution
The business strategy served as our roadmap for executing several initiatives.
Initiatives
Increase the number of eligible accounts
Objective
Our objective is to increase the number of eligible accounts
Situation Prior
Capitalbox NL operated both a direct and partner channel, but was largely reactive in its approach.
Our Action
Momentum proposed changing the target from the number of accounts to the number of eligible accounts. This clarified the focus of the group marketing team, which could concentrate on the right customers instead of just increasing the number of accounts. In collaboration with the NL Sales and Group Marketing teams, we have defined several actions to boost the number of eligible accounts. These actions include adjusting and increasing investment in Google keywords, opening affiliate channels, revisiting the website, assigning underwriting to handle customer communications once the required documentation is received, and setting up LinkedIn automation.
Result
CapitalBox is currently executing the defined action and is on track to deliver the envisioned results. We cannot share the figures due to confidentiality.
Increase risk approval ratio
Objective
Our objective is to increase the risk approval rate
Situation Prior
The risk approval ratio of CapitalBox in the Netherlands was much lower compared to other countries where CapitalBox is operating, as well as compared to Dutch competitors.
Our Action
In collaboration with the Group Risk and Underwriting teams in the Netherlands, we have defined several actions to increase the risk approval rate. These actions are based on a thorough assessment of CapitalBox NL, Dutch competitors, and learnings from within the CapitalBox group. These actions include adjusting the eligibility criteria for CapitalBox NL, calibrating affordability, financial criteria, and knock-outs, and aligning the risk model with the general CapitalBox model instead of the previous Spotcap model.
Result
CapitalBox is currently executing the defined action and is on track to deliver the envisioned results. We cannot share the figures due to confidentiality.
