With all outsourcing arrangements, boards and senior management must understand that they are placing the resilience of their firm into the hands of a third-party (or a group company) and while they may be able to monitor the service during normal operations, when something goes wrong, they are reliant on someone else to fix it.
Projects that envisage cooperation between banks and operators specializing in the management of NPLs can also be a good solution for unlikely-to-pay loans of firms in temporary difficulty. Profitability improved in 2018.