Fundamentally Built on Customer Trust

Provident Financial Ltd. has been a leading player in the personal loan market in Hungary for a quarter of a century now. The CEO of the company, Viktor Boczán, who has been with Provident in different positions and in different countries for also 25 years, explains to Diplomacy&Trade how Provident can maintain a long-term, predictable presence on the Hungarian market in a responsible and sustainable manner.

Regarding the market and how Provident has built up a successful operation here, the CEO points out that even when this service was launched 25 years ago, in 2001, it was clear that it filled a gap in the financial services market. “Provident operates in a segment where banks typically do not. In fact, classic banking products were designed for larger expenses, such as purchasing goods of greater value or buying a home, but bridging solutions did not really exist in Hungary at the time – this is typically Provident's domain. In addition to planned expenses, we see that roughly 80% of our customers use our services for unexpected expenses of various kinds, essentially as a bridging solution. A lot has changed in the market over the past quarter of a century, our customers have changed a lot, and perhaps one of the constants that has remained over this period is this bridging nature, when customers do not want to get into long-term debt – and that is when Provident comes in.”

Sharing best practices
Viktor Boczán took over the management of Provident in Hungary two years ago. He highlights that “even within this company, there may be countless initiatives that worked very well in the past but, for some reason, have fallen by the wayside – things that resonated with customers, that employees liked and that we see are good for the company. We bring these back if they have been put on the sidelines for some reason but we feel they can still, or again, be useful. Another aspect is that I personally had the opportunity to work in two other markets besides Hungary and experienced best practices that can be brought in from abroad, just as I tried to transfer Hungarian know-how to Romania, and then, I went to the Czech Republic with a package that already included Romanian and Hungarian elements. Also, when I came home, Czech elements were added to it. One of the biggest advantages of belonging to a corporate group is that this best practice sharing can be realized much more easily.”

International background
Best practice sharing is also facilitated by the fact that Provident Financial Ltd. is part of the UK-based group International Personal Finance Plc., a global financial services provider that plays a vital role in the lives of millions of customers and also provides an international background for Provident's activities in Hungary. Viktor Boczán notes the importance the establishment of the Group’s European division around 2019, “as we are present in numerous countries with different products.”
In Hungary, Provident is best known for their home service product, which they deliver to customers’ households through a network of representatives, but within the group, there is also digital lending, even in countries such as Australia, Mexico or the Baltic states.
However, the international background also extends beyond a stable financial framework. International Personal Finance’s European presence represents a collaborative system where the experiences of different countries are continuously integrated into each other’s operations. This Europe-wide knowledge sharing enables the company to respond quickly and effectively to a changing environment while also taking local characteristics into account.

Financial awareness
Provident provides services for customers in various countries of slightly different markets, even if they are similar in certain respects. As regard the financial awareness of Hungarians compared to those in the neighboring countries, the CEO says he does not see that much of a difference. “Interestingly, if I look at the different countries from a macroeconomic perspective, there are differences, and I really felt this when I was working in the Czech Republic. However, in the segment that is Provident's target group, i.e., below banks or one level below bank services, I didn't see such big differences – neither in consumer preferences nor in financial literacy, etc., in the Czech Republic, Hungary or Romania.”
Looking at this matter from his perspective, he stresses that “since 2001, when I started to work for Provident, I have seen progress, but I think there is still a long way to go, and it may be worth approaching this by age group, as we see a very large gap, especially among the older generation. So, I think that one part of it is how financially educated people are, and the other is that service providers are able to deal with what I would call a general crisis of confidence in financial services, because it's one thing to understand, but it's another to be confident and brave enough to use it.”

Financial services in social context
In Hungary, Provident is active in promoting financial literacy. “There are quite a few things I can be very proud of, and this would definitely be on that list: from the very beginning, we’ve made financial literacy and education our top priority. Initially, we wanted to help families manage their available income effectively. Even now, financial education is actively and vigorously promoted at retirement academies as we specifically want to focus on the older generation. Education has always been a part of what we do. What has changed that we have always strived to ensure the knowledge we impart – whether in terms of content or teaching methods – aligns with the spirit of the times. On the other hand, we have always sought to focus on the most appropriate target group based on what our surveys indicated,” the CEO points out.
Going into details, he calls attention to one key feature of Provident’s operations in Hungary, which is that it views financial services not in isolation, but within a broader social context. In addition to responsible lending and customer focus, creating social value plays a prominent role in the company’s strategy.
A key element of this is the ‘Invisibles’ program, which is implemented in cooperation with the Hungarian Interchurch Aid Organization. The initiative aims to reach social groups that are often overlooked by traditional financial solutions and to support them in their daily lives with practical tools. The program includes financial education, community experiences, and elements that promote self-reliance, thereby contributing in a comprehensive way to the creation of a more stable life situation.
The company’s educational activities also extend to the older generation: through the Pensioners’ Academy, they provide easy-to-understand and immediately applicable financial knowledge, reinforcing confident decision-making.
All of this is closely linked to the recognition that, in addition to financial knowledge, trust is also key. Provident therefore not only provides information but also creates points of connection that enhance customers’ sense of security.

Excellence in customer service
This January, Provident was once again named ‘Hungary’s Best Workplace’. Viktor Boczán notes that his personal credo, which he always shares with his colleagues, is that “it’s not me who pays their salaries – our customers pay us all. This shows just how important excellent customer service is, especially at a company like ours, which is fundamentally built on trust, in a world where financial services in particular are surrounded by a general sense of mistrust. I can only provide excellent service to our customers if it is delivered by highly trained, deeply committed employees, and that brings us to why commitment is important to the company, why it is important – as revealed by the Top Employer designation – that our HR processes meet the highest standards. If the company operates this way internally, then we have the foundational infrastructure that enables us to provide our clients with exemplary service, and if I may share just a bit more on this, I’m not only proud of this – I consider it a truly important strategic objective.” As an example, he mentions the ‘Excellence in Customer Service’ competition organized by Client First, in which “we have not only participated regularly since roughly the early 2010s, but we have also consistently either won or took a place on the podium, which is important proof that we don’t just talk the talk, we walk the walk, and not only do we conduct internal customer satisfaction surveys, but we have also incorporated these into our compensation system. Our customer satisfaction index for last year, as far as I can see, was consistently above 90% – I’m referring here to those who interacted with our service. This is our so-called Net Promoter Score, which averaged over 70% for the year and even reached 77% in December – a remarkably high level of satisfaction, especially in the financial services market, whether we’re talking about banking products or other offerings. It is very important to us that our customers feel valued, and to achieve this, we need excellent colleagues.”