Driving Financial Responsibility and Sustainability in Romania

In the world of financial services, KRUK has been a trailblazer for 25 years, driving financial responsibility and sustainability with a profound impact on Romania for 16 years. Exploring KRUK’s Romanian journey reveals the pivotal role of Polish procedures, contributions to the Group’s success, the advantages of being part of a larger organization, and remarkable strides in sustainability and financial education.

A Quarter Century of Financial Responsibility and Sustainability

Since its inception in Romania over 16 years ago, KRUK has made significant strides in the debt management and financial responsibility sector. Cosmina Marinescu, the CEO of KRUK Romania, emphasises the fact that the company’s success in Romania is a reflection of its commitment to providing efficient, user-friendly services tailored to customer needs. This commitment has been instrumental in the development of various innovations and services. She states, “The most significant impact is revealed in the area of development investments in customer needs – the eKRUK platform, chatbots, self-payer & self-servicer, front line advice, 24/7 availability, the simplest possible way to manage debt, digitalization, as well as sustainable debt payment for our clients.” Moreover, KRUK has embraced environmental, social, and governance (ESG) principles, making responsible corporate governance a core pillar in its operations in Romania and other countries where it operates. Marinescu highlights that KRUK’s activities align with industry best practices and legal requirements. She adds, “KRUK activities are guided by the Code of Ethics and best practices developed by national industry associations, which set out the principles of sustainable debt management, in a precise and specific way, with due respect for human rights and for the capacity of any human for financial awareness.”

Contributing to Economic Prosperity

The presence of companies like KRUK on the Romanian market carries significant economic implications. Notably, they contribute to clearing payment bottlenecks, enhancing financial liquidity, and reducing bad debt provisions, ultimately mitigating the risk of bankruptcy. Cosmina Marinescu adds, “We also have a track record of raising payment morality, increasing confidence in business transactions, and thus allowing companies to focus on expansion and revenue growth rather than the consequences of a growing volume of overdue receivables.”

KRUK Romania, established for over 16 years, has successfully helped more than 600,000 individuals reintegrate into the macro-economic system. The company’s financial education initiatives align with a dire need in Romania, where only 8% of the population possesses basic financial knowledge. The company’s CEO notes that KRUK’s purpose is “to counter financial exclusion and empower people to pay their debts easily, on time.”

KRUK’s presence in Romania has not only transformed the debt management landscape, but has also had a significant impact on the country’s economic development. Through its operations, KRUK has facilitated the proper circulation of money, enhanced financial liquidity, and reduced the level of bad debt provisions. This, in turn, has allowed other businesses to continue their investments, reducing the risk of bankruptcy and contributing to overall market stability. Marinescu notes, “The debt management market makes a huge and positive contribution to the proper circulation of money and to economic prosperity.” One key aspect of KRUK’s mission is financial education. In Romania, where financial literacy levels are relatively low, the company aims to raise them by over 20% by 2030. 75% of KRUK clients in Romania are already aware of the financial consequences of not paying debts, and they are empowered to make informed decisions. This commitment to education extends to the “Day without Debt” campaign, an annual initiative that raises awareness about financial responsibility. “Our goal is to share this fact with all audiences, as much as we would like our clients to acknowledge that their debt is their responsibility,” Marinescu explains.

Learning from the Polish Parent Company

In an ever-changing global financial landscape, the integration of best practices and expertise from a parent company can significantly impact the success and growth of its subsidiaries. KRUK Romania, part of the larger KRUK Group, exemplifies this dynamic with its strategic adoption of Polish procedures and know-how. The integration of Polish best practices into the Romanian subsidiary has been a key factor in KRUK’s success in the country. Cosmina Marinescu points out that all procedures and policies are established through working groups with representatives from each country. This collaborative approach ensures that the highest standards are maintained across the entire global KRUK team. “With 25 years of European knowledge and experience, KRUK is now a leading mentor of financial responsibility and debt payment services. Standards and best practices are ensured for the entire global KRUK team,” she adds. One of the standout strategies that have been successfully implemented in Romania is the “Discovery” programme. It has significantly strengthened digital skills among employees and clients, with a notable 60% increase in online debt management in 2022. Additionally, the digital tools provided by KRUK have expanded digital availability for clients to reach an impressive 90% figure for digitally signed agreements.

Sustainability and Environmental Responsibility

Liviu Costica, the COO of KRUK Romania, highlights the company’s commitment to environmental responsibility, endorsing the UN’s Sustainable Development Goals and the European Green Deal. “An action plan has been implemented in each KRUK country to achieve a 70% reduction in carbon emissions by 2040, through a wide range of measures, such as improving the efficiency of our car fleet, using renewable energy sources, reducing energy consumption in office buildings, streamlining & optimising workflows to reduce paper waste, core business digitalization, as well as closely monitoring the environmental impact of our business model,” Costica explains. The COO also talks about the positive impact of these sustainability efforts on employee engagement and innovation. More than 500 creative ideas have been submitted through KRUK’s Innovation Lab in Romania, with over 16% of them having evolved into ongoing development projects. “As part of our ESG goals, by 2026, we aim to report emissions for each of KRUK’s main business processes,” he notes.

Supporting Financial Responsibility through Research

The Debt Free Day campaign has been instrumental in raising awareness about financial responsibility in Romania. Social market research conducted as part of the campaign has provided valuable insights into financial behaviours and challenges among Romanians. The findings have influenced the development of services such as 24/7 client availability and other solutions tailored to address these challenges. Marinescu explains, “When signing for a loan, a subscription or insurance policy, people or companies agree to terms and conditions in exchange for financial trust, becoming financially responsible, adding both due dates and risk to the individual financial balance, as well as to the macro-economic community.”

Liviu Costica highlights the results of the research: “Due to the accelerated transformation in both financial education and financial responsibility categories, with thousands of new financially literate participants infusing capital and conducting smart spending, in 2022, almost 90% of Romanians considered themselves responsible for their financial decisions, and almost 8 out of 10 said they managed to pay their financial obligations on time, according to an IRES Study on Financial Lifestyle in Romania.”

Future Plans and Sustainability Goals

Looking ahead, KRUK remains committed to its mission of promoting financial responsibility and sustainability. Cosmina Marinescu says that the company aims to increase financial and digital inclusion, with a focus on education, professional development, and volunteering programmes for employees. Additionally, KRUK aims to further reduce its carbon footprint by 70% by 2040.

“Our journey has only just begun, and we are steadfast in our dedication to shaping a brighter financial future for all Romanians,” concludes CEO Cosmina Marinescu.

As the KRUK Group celebrates 25 years in total and 16 in Romania, it continues to be a driving force in the country’s financial landscape, championing financial responsibility, sustainability, and innovation. Through its commitment to education, responsible business practices, and community engagement, the KRUK Group sets a compelling example for businesses in Romania and beyond. In conclusion, KRUK Romania exemplifies how the integration of best practices and expertise from a parent company can foster growth, financial responsibility, and sustainability. With a commitment to education and a responsible corporate culture, KRUK Romania is not only making a positive impact on the Romanian economy, but also empowering individuals to take control of their financial future.

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