DIAG: Mr. Odermatt, you have been in the debt collection business for over 50 years. In 1970 you founded K. Odermatt, Inkasso Organization & Co. and in 1973, shortly before the outbreak of the first oil crisis and thus in an economically difficult environment, you foundedInkasso AG (formerly Inkasso Organization AG, Zug).
Despite the “oil embargo” at the time and subsequent crises, such as the oil crisis of 1979/80, the stock market crash of 1987, the Swiss real estate crisis in the early 1990s or the banking crisis of 2008, from which the global economy was only able to recover to some extent , do you have the debt collection AG built into one of the leading companies in Switzerland in the area of credit management.
How do you see and experience the situation in the midst of today's global corona crisis and the expected recession? Are we even threatened by a global economic crisis like 90 years ago?
Kurt Odermatt VR President and CEO dieInkasso AG
Kurt Odermatt: There is no doubt that the national and international economy is suffering from COVID-19. Unemployment will increasingly be a problem, and many industries will have to cope with substantial losses in sales, which in turn will slow down investment and growth. The result could be a recession. I do not expect a global economic crisis yet, although the indebtedness of many countries is growing in astronomical amounts.
DIAG: In times of crisis, when many invoices remain unpaid, we often hear that this situation must be of great benefit to the debt collection industry. Is that correct?
Kurt Odermatt: This impression is not true. We are in the same boat as our clients. The debt collection industry can only do well when the economy is doing well. Because if consumers or companies are not liquid, we can realize less money and the loss rate increases.
It is true, however, that professional receivables management becomes more relevant in a difficult economic environment. Experience shows that the cases have become more complex and the resistance to payment has increased. The Federal Council has paralyzed large parts of the economy, especially SMEs, by means of emergency law. He also intervened in the provisions of debt collection and bankruptcy law, in part also in company law, which a prima vista benefits the debtors, but harms the creditors.
Especially the past few weeks with the Lockdown have shown this as an example when many companies, self-employed people and employees suddenly and through no fault of their own were left with nothing. Here, additional sensitivity was and is required from our people. Every day, our employees master the balancing act between the legitimate claims of our clients and the sometimes difficult situation of the debtors and to find solutions that are acceptable for all parties.
However, it should not be forgotten that even without COVID-19, more debt enforcements have to be initiated every year. In 2017 you were around 2,93 Million and 2018 with 2,98 Million just under the 3 million mark in payment orders that were delivered in 2019 3 debt enforcements also cracked this mark!
In addition to the 3 million payment orders, last year 1 seizures accomplished what to 692 recoveries led. The losses (only from bankruptcies) increased since 2017 alone more than half a billion francs to and amounted to in 2019 CHF 2.– with a population of 8,57 million. And this without COVID-19. (Source: FSO)
Nevertheless: The Federal Council acted wisely by limiting the legal standstill to 14 days and after another 14 days of Easter enforcement holidays on April 19.04.2020, XNUMX, the legal system was put back into operation.
“We could learn a lot from the Chinese at the moment. They have the same character for crisis and opportunity. "
A quote from Richard von Weizsacker (* April 15, 1920; † January 31, 2015), former Federal President of the FRG.
DIAG: As Chairman of the Board of Directors and CEO of the debt collection AG, you still work actively in the company, even if you have delegated certain operational tasks and responsibilities. How have you been in times of "Social Distancing" personally organized and how do your employees work?
Kurt Odermatt: Our technical possibilities are very well developed. All programs and systems can be accessed depending on authorization. Over 90% of our employees work from their home office, confirm new orders and process their cases and mandates as well as appointments without any problems. The communication between the management and our employees in their various departments and branches takes place not only by e-mail or telephone, but increasingly also via state-of-the-art office platforms, which in addition to video conferences and chats also enable a centralized exchange of knowledge and documents the employees allowed. Access to internal and external address and creditworthiness databases is also guaranteed.
DIAG: Times of crisis are also always the motor for changes, renewals and the reason to question and adapt previous usages and processes or even laws. This corona pandemic has shown, for example, that because of our much-cited “cantonal league”, many questions of jurisdiction between the Confederation and the cantons fall by the wayside. The result of this was, for example, bottlenecks in face masks and protective suits for medical staff in hospitals, doctors' offices and old people's homes. Or, it is hard to believe, with hand disinfectants. Despite the state pandemic plan.
Is this complicated form of state organization of tasks and responsibility, the different legislations at cantonal level, on such important issues, especially in a small country like Switzerland, still up to date?
In relation to the debt collection industry: Shouldn't debt enforcement registers, for example, be kept centrally throughout Switzerland instead of, as is still the case today, at the municipal or district level like the debt enforcement offices? And the sometimes considerable differences in terms of work quality and speed of the respective debt enforcement authorities, not to mention their divergent requirements for information from Lake Constance to the extreme tip of Lac Léman, would not be an occasion to standardize and modernize in the course of digitization ? In your opinion, where is there room for improvement?
Kurt Odermatt: Basically, our legal system has proven itself. It takes federalism, the various language regions and local customs into account, all while preserving our common legal system. But even good systems are always in need of improvement. Be it that in future it will be possible to communicate more and more with the authorities in electronic form or that there are plans to keep a central debt collection register. You speak of "... considerableThere are many differences in terms of quality and speed of work, not to mention divergent requirements ... " Unfortunately, that is the price for decentralized administration and cantonal responsibilities.
Apart from the necessary amalgamation of municipalities and offices, I wouldn't change much about this system. If offices, authorities or courts do not behave in accordance with the law, there are sufficient legal remedies available to bring them to reason. Appeals, sometimes up to the federal court or supervisory complaints, accompany our activities; we employ a team of legal experts under the guidance of an experienced lawyer, who can support and advise our team leaders and clerks even in the most difficult of matters. And this also benefits our customers.
DIAG: Many companies use times of crisis to prepare for the future and develop new concepts, products and services. What about dieInkasso in this regard?
Kurt Odermatt: We are currently investing a lot in new hardware and software. A new CRM tool is being implemented, especially for customer service and sales, and new software solutions are being implemented for the fulfillment of our various collection services, which among other things enable the integration of interfaces for connection to our customers' ERP systems (SAP etc.) or for e-SchKG and much more.
These innovations are essential in order to continue to meet the increasing needs of our customers in the future. We are also developing new types of services for pre-legal receivables management and are moving more and more towards taking over our customers' entire debtor business processes.
But our own processes and the way in which we want to work together in the company in the future and want to develop will also experience a fundamental change with influences from Scrum teaching.
DIAG: That all sounds very exciting and promising. Thank you very much for the conversation.
