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GE's progressive domination of the global consumer finance market strikes fear and admiration in the hearts of retail bankers worldwide. RBI's Titien Ahmad talks to Peter Henley, CEO of GE Money Singapore and Malaysia, about the company's recent successes in Singapore, its plans for Malaysia and its high expectations for the region as a whole
The name GE has many associations for global bankers - from its charismatic ex-CEO Jack Welch to its slow-but-sure encroachment into the lucrative consumer finance space. In more than one country, GE has taken the local banks by surprise with its uncanny ability to sniff out an untapped market and make a tidy profit out of meeting its underserved needs.
For example, GE Money, then known as GE Consumer Finance, entered the Thai market through a purchase of two tranches of non-performing auto and commercial loans from the Financial Sector Restructuring Authority in a joint venture with Goldman Sachs.
This was in 1997 when the country was still embroiled in the financial crisis that rocked the region. Since then the majority of the loans have reportedly been fully rehabilitated, although 85 percent were delinquent when acquired.
More recently, it launched ezyCash in Singapore, offering loans to customers through a tie-up with the ubiquitous Singapore Post Office. Through the distribution agreement, GE in one stroke acquired...