Concept of CPI

Customer Performance Index (CPI) is a financial performance measure developed by IuteCredit, it’s used by IuteCredit and will eventually become an industry standard. It is the ratio between actual repayments of a customer or customer group, versus the expected repayments from that customer or customer group, scheduled for the particular period. As opposed to an NPL-based measurement, which is static and subject to various manipulation possibilities, CPI very clearly shows the quality of the current cash flow of the business and is also usable in the management of credit risk, including individual loans approvals.

CPI = 𝐴𝑐𝑡𝑢𝑎𝑙 𝑅𝑒𝑝𝑎𝑦𝑚𝑒𝑛𝑡𝑠 / 𝐸𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑅𝑒𝑝𝑎𝑦𝑚𝑒𝑛𝑡𝑠

IuteCredit’s targeted CPI is around 90. (We expect 90% of expected repayments to be actually performed by customers in due time or with a maximum 30 days delay. The remaining 10% of repayments are then subjected to overdue procedures and, if unsuccessful, default procedures.)

Historically, IuteCredit Group’s actual CPI has been between 85-91. In 2021, IuteCredit reached a CPI30 ratio of 86.7% as the weighted average across products and markets.