My Life in Finance

Jeroen van Loenen, Senior Credit Controller, Konica Minolta Business Solutions Nederland B.V.

 
Readers will be familiar with Jeroen van Loenen, whose article in edition 250 on transforming credit and collections at Konica Minolta was one of our best-read articles so far this year, following on from the well-deserved 2016 TMI Corporate Recognition Award for Credit & Collections. In this feature, Jeroen shares some perspectives on the profession and how it is evolving.

How did you come into finance – specifically credit and collections - and what attracted you to the profession?

I didn’t know what career I wanted to pursue when I completed national service after business school. I got a temporary job at Bosch in accounts receivable, and quickly discovered that it was a role I enjoyed and to which my skills appeared to be suited. In particular, I liked the role of mediator between the company and the customer, and the ability to solve problems in a very tangible way by satisfying customers and bringing the cash into the business.

How did your career progress through to the role that you hold today?

I fulfilled a variety of roles in different industries, including the telecom sector during a period of explosive growth in mobile telephones, and ultimately went to Fortis for both business (B2B) and consumer (B2C) credit. When Fortis sold the business, I joined the mortgage subsidiary of Lehman Bros that provided sub-prime mortgages. When Lehman collapsed, I looked back on my time there and decided I no longer wanted to be involved in B2C credit management, and I was uncomfortable about the behaviour and rigour with which organisations at that time pursued payment, and the impact on people’s lives.

After a short time, I was employed by the European division of Japanese engineering firm Yanmar in November 2009. This was my first experience of implementing a credit management system. While Japanese companies are typically quite reluctant to chase up customer payment, the European CEO, who was also a member of the board, recognised the benefits of implementing a structured and sustainable approach to credit and collections, and the project was approved. Even so, ‘selling’ the project to internal customers was very challenging. During this time, I recognised the importance of greater sense of political and emotional intelligence and refined these skills. I also realised how much I enjoy bring people together, and encouraging collaboration and resolution across multi-disciplinary teams.

I joined Konica Minolta in 2013, and have since led the project to transform our credit and collections processes by implementing FIS’ GETPAID, and it was a huge privilege to be awarded the TMI Corporate Recognition Award 2016 for Credit & Collections.

How have demands and needs in terms of treasury changed over the course of your career, and what particular skills does it now require?

Ten years ago, credit and collections management was relatively simple, particularly for a bank. At that time, banks were always right. If you couldn’t pay, no matter why not, the bank would pursue payment. People have more rights now – and have a better knowledge of them too. Credit managers need to understand these rules too, which can be particularly challenging when managing credit and collections internationally. Indeed, sometimes it goes too far, and the amount of detail on consumer rights given on invoices can be excessive – perhaps some people are interested to that level of detail, but not many! Technology has also changed, of course, and tools such as FIS’ GETPAID have transformed the processes, controls and quality and transparency of decision-making in credit and collections.

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What qualities do you look for when recruiting for a treasury department?

People need to be passionate, promote transparency, be open and honest, and work collaboratively. As part of our interview process, we use real-life examples of customer situations and ask candidates how they would deal with them. While educational background is important - although there are no specific qualifications in credit and collections - only a certain type of person is suited to this profession, and you tend to sense this when you meet someone, rather than their qualities being reflected in the list of qualifications on their résumé. Credit and collections can be tough at times, so people need to be strong whilst also recognising that with B2C in particular, you are dealing with potentially sensitive issues. People have only a certain amount in their pocket, and have other bills to pay, so tact and understanding are crucial. Forcing payment only pushes people even lower, and referring debts to credit agencies needs to be done selectively and thoughtfully given low collection rates and high costs, together with the potentially harmful impact on individuals. Credit and collection is an art, as well as a series of processes, and not everyone has this talent. 

Based on your career so far, what would your advice be to finance professionals who are in their first treasury role?

To be a good credit manager, you need to be a good listener. Know what you’re talking about, as nothing destroys trust quicker than being found out! If you promise something to a customer, such as chasing up a dispute or issuing a credit note, do what you have promised and if you need to speak to them on another occasion, the conversation will be easier. It shouldn’t just be a job, you need to be passionate about making a difference by solving problems, and delivering value to the organisation, irrespective of the size of the invoices involved.

What would your ideal vacation be?

A road trip, some cultural sites, but some beach-time too! My wife and I have planned a holiday later this year including a week in New York and a week in Florida, including Miami beach: we enjoy visiting the USA, and really appreciate the diversity.

What book have you read, or movie have you seen recently that you would recommend, and why?

I would recommend The Circle by Dave Eggers. The book has also been made into a movie with Tom Hanks and Emma Watson too: I haven’t yet seen it, but I’m hoping it will be as engaging as the book. A graduate goes to work with a powerful internet company, and gradually realises that the firm has a hidden agenda in the way that they use customer data. It was very thought-provoking and quite scary in fact, as it didn’t seem to be so far away from reality given the rise of predictive algorithms and artificial intelligence.