ESG REPORT | 2021
Tangible impact in a challenging year
2020 put ESG considerations under the spotlight in a way none of us predicted, with the ‘S’ coming into focus. Many businesses and consumers were put under extreme stress, including financial stress. The already financially vulnerable were impacted the most. Many businesses on which individuals depended, such as banks, lenders, utility providers, and debt advice providers have struggled to respond as the world came to a standstill during the pandemic amidst lockdowns.
We have always thought Aryza had an important role to play in helping build financial health of consumers and SMEs. This year tested our capabilities and resolve.
Aryza swiftly responded to challenges both internally and externally, benefitting from an agile business model and a committed and capable team of experts. We continued to support our customers, delivering high quality services in a business-as-usual fashion. In addition, we leveraged our expertise and resources to build tools to help others deal with the stress of Covid-19. In 2020 we launched our Aryza Recover product in partnership with Experian, a digital tool that allows consumers to take control of their financial situation and make better financial decisions.
And despite the shock of Covid-19, we have also continued on our journey of improving ESG metrics which we have defined as key for the business – covering marketplace, workplace, community and the environment. During the year, we saw an increase in the number of customers supported by Aryza, supported growth of diverse SMEs, improved diversity of the Aryza team, and reduced our impact on the environment.
I’m proud of the team and what we have achieved despite the challenges the year brought, and I look forward to continuing to deliver against our mission of shaping healthier financial experiences for individuals around the world.
Colin Brown CEO
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Governance established to support Aryza’s commitment to deliver effective and sustainable positive impact on people’s financial health
Corporate governance
Aryza has implemented a structured governance and risk framework to meet the needs of an evolving business. Open and honest working is at the heart of the company’s values and is key to maintaining high standards of conduct and ethics.
The framework sets out clear and ethical standards to assist everybody at Aryza make the right decisions. This is supported by policies and procedures covering areas such as anti-bribery and corruption, gifts and hospitality, complaint handling, financial crime prevention, whistleblowing, treatment of vulnerable customers and more.
• The Board’s role and composition are regularly reviewed to ensure that they continue to be well-defined, appropriate and support the long-term development of the business.
• The overall responsibility for the day-to-day management of the Group is delegated to the Chief Executive Officer. The Chief Executive Officer is supported in this role by senior management who are responsible for management oversight of the Group.
• The Board, led by the CEO, is responsible for establishing ESG strategy, determining policies and reviewing performance against stated goals.
• The Board has delegated certain matters to committees within the Group, with these matters regularly reviewed by the Board during monthly board meetings, with Risk and ESG both standing board agenda items.
Board
• The Risk Committee focuses on the effectiveness of the design and operation and the appropriateness of the risk management framework and internal control systems of Aryza. This includes risk assessment, setting risk tolerance, product development and pricing, risk treatment internal control effectiveness, risk monitoring and risk reporting.
• The Risk Committee reviews the risk management framework as part of the business strategy and Aryza’s business model. The Risk Committee also reviews the Aryza’s risk exposure and compliance with Group risk policies covering all known material risks of Aryza and related treatment and control requirements. This is a continual process that ensures Aryza’s evolving and new risks are considered throughout the Group.
Risk Committee
• The Audit Committee oversees the effectiveness, independence, and knowledge of the Group’s senior team to enable them to discharge their duties and responsibilities
effectively. The committee is responsible for appointing the Group's external auditors, overseeing the annual external audit process and approving the annual internal audit plan.
Audit Committee
• The ISMF is responsible for the management framework to initiate and control the implementation and operation of information security management systems within the
Aryza Group. In particular the implementation and attainment of best in class ISO 27001 information security management systems is a key goal for the ISMF.
Information Security Management Forum (ISMF)
Governance bodies
Key responsibilities
Pioneering software for the debt journey, designed to positively impact financial wellbeing
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We help shape healthier financial experiences for individuals around the world
One team, one purpose
We believe in working closely together with our customers towards a shared vision: Helping individuals take vital steps towards a healthier financial future. Everything we build, and everything we do, is built and done with this in mind.
We leverage our knowledge to support consumers and businesses
We have a wealth of accurate and real time market data and insights as a result of working with businesses that help millions of people around the world. We use data mindfully to improve individuals’ outcomes, help them make better choices, and feel in control of their personal finances.
Our mission is to transform the financial relationships businesses have with their customers
We strive to change the conversation from managing troubled situations to solving the problem at its core. By leveraging our holistic approach that spans the entire debt journey, we can have an effective and sustainable impact on people’s financial health.
Innovation is at the heart of what we do
Our excellence and innovation has been recognised in 2020 and we are proud of making a significant and positive difference to the lives of consumers managing their finances during these unexpected times.
Financial management is complicated, but it doesn’t need to be. With the right tools businesses can more efficiently help their customers take control of their finances and move towards a brighter future.
At Aryza we have built the tools.
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We offer pioneering software for the debt cycle, designed to positively impact financial wellbeing
A diverse range of products across the entire debt cycle
We work tirelessly with our partners to provide holistic, intelligent and dynamic solutions that help manage debt, insolvency and loans.
Using the latest technology to transform the debt industry, for the better
By leveraging our accumulated knowledge, customer insights, and a holistic and empathetic approach, we believe we can create an exciting and positive future for the industry.
With our unwavering dedication to our vision, we will improve the financial health and the lives of the millions of people that engage with our products everyday.
Accumulated knowledge and deep expertise
Genuine empathy and customer understanding
A holistic approach to financial recovery
A pioneering approach grounded in great technology
Financial Assessment
Collections & Recovery
Tools to improve engagement and outcomes across collections and recovery
Debt & Insolvency
Solutions to help businesses guide consumers struggling with their finances
Lending
Software for managing the full journey from origination to payment
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ESG is integrated into our day to day business – our products tangibly improve outcomes for consumers and SMEs
Our products deliver a range of benefits to consumers and SMEs
We partner with leading organisations focused on improving financial outcomes
Make debt advice more tailored and accessible Our software assures accurate debt advice for individuals all over the world. We work with clients and partners such as StepChange Debt Charity to ensure high quality advice is accessible for everyone
Help consumers improve financial health We help consumers get out of debt faster by making available a range of features such as our benefits checker, utilities switching, and automated repayment plans
Improve availability of debt solutions best-suited for consumers We automate and data enrich debt servicing processes, to improve efficiency and as a result increase availability of debt solutions most favourable to customers (e.g. IVAs, DMPs, Trust Deeds, DROs)
Improve user experience Using open banking, online chatbots and automated payment plans, we make it easier for consumers to deal with financial difficulties – in a way that makes them feel most comfortable
Identify and protect the vulnerable Using open banking and partnering with 3rd party providers such as Vulnerability Registration Service, we help identify vulnerable customers upfront
Improve access to funding We help customers who are declined by a lender to find an alternative lender or a better suited debt solution
We work with our partners to provide
holistic, intelligent and dynamic solutions that
help manage debt, insolvency and loans.
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We help make consumer friendly debt solutions available to more people in financial difficulty through data and automation Since launch in 2002, our case management platform has helped millions of individuals move closer to financial rehabilitation
Aryza software and solutions enable efficient servicing of all types of insolvencies including Individual Voluntary Arrangements (IVAs), which are UK court appointed contractual arrangements for a consumer to repay debts over 5 years and avoid bankruptcy. Repayments are based on how much each individual can afford, with on average ~80% of debt written off.
Aryza software reduces associated costs of collection, making solutions more acceptable to creditors and available to consumers. This has supported reduction in bankruptcies over the last 10 years, with more consumers protected via IVAs.
In addition, consumers are better served using automated systems and processes such as open banking and 3rd party services (e.g. benefits checker) which ensure fair treatment, better user experience and improved outcomes.
Source: The Insolvency Service
Returned to creditors
Consumers entering IVAs pay only a fraction of debt outstanding and can protect their homes
Aryza has enabled a reduction in IP fees
Structure of an IVA – Funds Flow
2011 2020
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We helped lenders treat customers fairly when they needed it the most – responding rapidly during the pandemic
In 2020 many people were left in long-term unemployment, while also coping with the mental health impact of the pandemic
We have been there to help, supporting individuals and businesses and bringing to market Aryza Recover in record time.
Our software helps individuals manage the impact of Covid-19 and financial hardship, supporting interaction between individuals and lenders in a secure and easy-to use way, while assuring compliance with forbearance and payment options and helping lenders easily identify customer vulnerability.
Working together, Experian and Aryza reframe the conversation around money management, offering a streamlined, bespoke customer experience that optimises the digital journey.
actively using since launch
<2 months to deliver brand new Aryza Recover product
55k+ 8k+ users having access to automated payment plans
Our software helps individuals manage the impact of Covid-19 and financial hardship,
supporting interaction between individuals and lenders in a secure easy-to use way
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Our holistic ESG Impact Framework is guided by the UN’s Sustainable Development Goals
Workplace
We strive to create a positive working environment for our people and improve diversity.
Community
We aim to support regional economic growth and have meaningful and effective social contributions.
Environment
We are committed to identifying and improving the environmental impact of our operations.
Governance and leadership
We take accountability for our decisions by implementing regulatory and operational best practices to help identify and manage all material risks.
Marketplace
We are committed to providing the best outcomes by ensuring the products and services we provide benefit individuals, SMEs and suppliers.
2019
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2020 has been a year of improvement for us from an ESG standpoint
205k+
212k+
198
606
Scope 1
Scope 2
2019 2020
73.5 23.9
building
Environment
Governance and leadership
→ Aryza is currently FCA authorised and has a structured governance and risk framework
→ The board supports the long-term development of the business, meeting every month and assuring compliance procedures are followed
→ We have recently developed a group wide ESG policy, which assures our principles are aligned across and closely followed by the group
Note: (1) 2020 numbers include customers of a business acquired in 2020 (2) Excludes Mauritius entities. (3) Scope 2 carbon emission figures include market emissions
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We always want to be better which is why we set ourselves several goals for the future
Continue to support regional economic growth and financial inclusion
Improve focus of our charitable contributions and donations
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Constant efforts to reduce carbon footprint and improve resource efficiency
Increase diversity across the group, with particular emphasis on diversity at senior management and board level
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Enhance ESG reporting by increasing the range of metrics tracked and improve data quality
Continue to focus on maintaining good governance and leadership practices
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As part of the Pollen Street family, we have contributed to a broader ESG impact that has gained industry recognition. ESG is embedded into the Pollen Street culture, values and throughout the investment process
Thanks to a sustainable business model and a value system which puts climate action at the forefront of decision-making BidX1 became carbon neutral.
Kingswood recently launched an ESG Bond Fund to reflect the significant uptick in demand from clients looking to become greener in the way they invest.
Winner, January 2021
The Times/ Raconteur
feature, February 2021
and A for Strategy Governance – 2020
Pollen Street ESG Report 2019
CashFlows has been at the forefront of promoting diversity and improving female representation across the business. Following a review of board diversity, senior female appointments were made to the positions of CEO and COO. Year on year, the business narrowed the gender pay gap by 70% across the organisation, and made a significant improvement in business culture.
Capitalflow offers financial programmes designed to support SMEs and community development across its asset finance, asset-based lending and commercial real estate business lines. In particular, its asset finance business line exhibits a strong focus on rural businesses which otherwise would have limited funding options. More than 75% of its clients are based in rural and smaller city regions.
Find out more at pollencap.com
If you'd like to find out more, get in touch.
hello@aryza.com 0800 072 0092