Meet Banca Farmafactoring – “One of the most profitable banks in Europe”

One of our Italian partner banks collects a large part of its deposits from outside of its home country. These and other interesting facts can be found in our interview with Paola Franchini, Deposit Business Manager at Banca Farmafactoring.

For how long has BFF Banking Group been operating? When did it start offering deposits?

BFF Banking Group is the leading European financial services provider to suppliers of the Public Administrations. Founded in Italy in 1985, it is active in three main business lines: Non Recourse Factoring, Financing to healthcare entities and Local Governments in Central Eastern Europe and Credit Management. After receiving a full banking license in 2013, the Group started to offer on-line term deposits to retail and corporate customers. BFF Banking Group is now operating in 9 Countries: Italy, Croatia, Czech Republic, France, Greece, Poland, Portugal, Slovakia and Spain. It is also active in Germany, The Netherlands and Ireland with on-line term deposits, serving a total of 12 Countries across Europe.

„Banca Farmafactoring is one of the most profitable banks in Europe.” (Paola Franchini)

BFF Banking Group has a robust capital position: at the end of June 2019 our Total Capital ratio was 16.1%, and CET1 was 11.6%, well above regulatory requirements. It has also a very low risk profile with Net NPLs of 1.3%, and it’s one of the most profitable banks in Europe, with 33% Adjusted RoTE.

(*Return on tangible equity, RoTE, is a ratio of net income to capital employed, as recognized by the banking supervisory authorities).

BFF covers short-term & long-term savings requirements of customers: it is available from 3 to 6 months, with special offers from time to time, which may vary depending on the Country.

What are the characteristics of your deposits?

Our deposits are simple and straightforward, and have no fees. They are digital and easy to open because we also offer extended customer support. Furthermore, deposits in BFF Banking Group are guaranteed by the Italian Deposit Guarantee Fund (Fondo Interbancario di Tutela dei Depositi – F.I.T.D.) which, as per EU regulation, covers up to 100,000 Euro per person.

The retail deposit product was launched first in Italy (2014), then in Spain (2015), Germany (2016), finally in The Netherlands, Poland and Ireland (2019). In Italy, Spain, and Poland we also offer a product for corporates. Facto is indeed a pan-European product: more than 70% of total deposits are from outside Italy. Since we started offering deposits, we have opened more than 23,000 accounts,  raised more than 2.3bn euro, and won the Rankia Awards as best term deposit in Spain for two consecutive years. Finally, more than 80% of our customers return to us.

„More than 70% of the total deposits come from customers outside Italy.“ (Paola Franchini)

Term deposits represent a competitive solution for customers, as they can be considered extremely safe products, essentially risk free given BFF Banking Group’s solidity and the guarantee.*

Thank you for the interview.

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*Please find more details on the harmonized deposit guarantee scheme in Europe here