In this series of Senior Executive Interviews, we asked our directors to answer a few questions to get to know them a little better. In this edition, FCI's Chairwoman, Ms Daniela Bonzanini, shares how she got started in the industry, her thoughts on the industry's digital transformation, and a couple of fun personal insights.

What got you started in the industry?

I started in the industry in the early 80s. I was employed in a company that manufactured cardboard processing machinery. Export represented the largest share of the business, and I was in charge of some foreign markets, mainly overseas countries. I was approached by a recruitment firm searching for an assistant to the General Manager of a recently established factoring company. When I got the call, I had no idea what factoring was. At that time, the product was almost unknown.

Nevertheless, I was excited to change jobs, work in the financial industry and learn a new profession. A year later, I was allowed to move to the International Department, and I accepted with enthusiasm. Thus, my career in international factoring began.

How do you feel about the digital transformation in the industry?

Digital transformation is a must, and it should be a priority in any strategic plan.

The evolution of technology pushes the financial industry to innovate its business model and reformulate its offer to clients. It also significantly impacts the factoring industry. The pandemic has enormously accelerated the digitalisation process already underway in company processes and the factoring industry. Digitising and dematerialising is essential to meet clients' needs best today.

Until recently, the digital business in invoice finances was mainly focused on the financial aspect of the assignment of accounts receivables, considering of secondary importance the services typical in factoring and which facilitate the exchange of information between the actors involved in a factoring operation: seller, buyer and the factor.

Now, digital innovation supports the assignment of receivables by strengthening the operational processes (such as onboarding, fraud detection, invoice reconciliation, double assignment prevention), the increase of service quality, the development of new business models such as supply chain finance and the opening of the door to new opportunities in terms of client base.

Some large banks have developed their platform in-house, while medium-size financial institutions typically use a platform offered by a provider. In this case, it is mandatory to verify for each business model enabled by the platform that the operations are carried out in full compliance with local legislation to guarantee that assignment is valid in the face of the debtor and third parties and the liabilities of the platform provider.

The FCI has also invested in a next-generation "blockchain ready" technology platform for its members that will be rolled out in the 1Q2022. It will be a game-changer for financial institutions and members of the FCI who want to conduct cross border traditional seller centric or reverse buyer-centric two-factor transactions. 

What has been the biggest highlight in your career?

I have been working in the industry for many years, and I consider myself lucky to say it's been exciting. There are two highlights I wish to mention. The first one was when Banca IFIS hired me in 2002 because I had the opportunity to enrich my knowledge of international factoring and trade finance with additional managerial skills. The second was when I joined the Education Committee because I had the opportunity to spread factoring knowledge. At the same time, I learnt a lot from the people I had the privilege of meeting.

Why should companies choose factoring?

Over the years, factoring has established itself as an essential form of financing, particularly for SMEs and increasingly for corporations. The unique structure and risk attributes of factoring make it possible for it to be offered where other more traditional forms of finance are either inappropriate or unavailable.   Combined with the dynamic nature of factoring, which is directly linked to the performance of the funded company, factoring solutions are increasingly important within the current economic environment.

Factoring has proven to be:

• Accessible:  if receivables are of good quality and the buyers are positively assessed, the seller can access more funding, and the level of funding can increase with its sales growth;
• Flexible: funds can be drawn in line with actual needs;
• Competitive: funds released against account receivables allows payment terms towards buyers to be extended;
• Efficient: streamlining payment collection activities and controlling the accounts receivables' status, taking advantage of Factors' high-level technology.

Protection against bad debts has become increasingly important. The pandemic has reaffirmed the importance of robust risk management measures to combat the non-payment risk of buyers. More companies than in the past now realise a quick and effective solution like factoring is needed to provide a safety net.

Favourite movie

I have a list of favourite movies, but one, in particular, touched me a lot. It is an Italian movie; the title is Life is beautiful. It is about an Italian Jewish man and his son who were taken to a concentration camp. The man employs his fertile imagination to shield his son from the horrors of the internment by telling him that the camp is a complicated game in which children must perform the tasks given to them.   Each task will earn them points, and whoever gets to one thousand points first will win a tank.

Pets

I have a Doberman. She is female, and her name is Qyla.

We want to thank Daniela for letting us get to know her a little more and look forward to finding out more about our other directors in the coming weeks, so stay tuned!

Discover more

Learn more about Daniela and the Executive Committee's strategic plan for FCI in the November 2021 In-Sight Newsletter by clicking here.

See who is on the Executive Committee by clicking here.