ALLIANZ TRADE, formerly EULER HERMES, IS A MAJOR PLAYER IN CREDIT INSURANCE WITH 62,000 CUSTOMERS WORLDWIDE. HOW, IN A CONTEXT OF A B2B E-COMMERCE ACCELERATOR AND IN PARTICULAR THE DEVELOPMENT OF B2B MARKETS, CAN IT SUPPORT THE TRANSPOSITION OF CREDIT INSURANCE TO THE DIGITAL WORLD? REPLY WITH MICKAËL DE SA, CDO OF ALLIANZ TRADE IN FRANCE.
B2B Innovation Questions: What is your view of the marketplace intermediation model today within B2B e-commerce?
Mickaël De Sa: First of all, we must remember that B2B e-commerce in general is already part of the strategic axes of companies. B2C matured much earlier from this point of view, but B2B has more than recovered: growth is now stronger than in B2C and average baskets are much higher – 1,800 euros against 60 euros in B2C.
Naturally, it is then an entire ecosystem that is put into battle order. B2B is by nature very vertical but also very fragmented with many sellers not always having the possibility to move towards e-commerce with their own platform and therefore market logic takes on its meaning and that is why these models are blooming.
For you, what are the innovation markers among marketplace operators and solution providers?
Marketplace operators end up having sellers as their main customers, even before buyers, because with the quality of the offer comes demand. It is therefore necessary to structure service packages for sellers – to act in a way as a service aggregator – and to constitute a space of security and trust consubstantial with what has historically been a market place, long before the digital world.
There are many technology providers that come into play in the success of a market: content management players, logistics services, but also payment players. In this regard, we know that for years companies have been selling on credit through traditional channels, but that online, this practice has long suffered from technological constraints and lack of software tools. This is where we come in.
So what is the challenge in terms of credit insurance in B2B marketplaces?
The market creates a new catchment area made up of ever-increasing numbers of players. However, traditional credit insurance practices were often based on buyer-specific risk analysis. The problem then becomes the following: how to make the analysis of the buyer’s solvency and risk determination more instantaneous and precise? And how these answers can fit into digital buying journeys, without degrading the user experience.
I will have the opportunity to develop, in my talk on February 2nd during the B2B Innovation Challenges 2023, our approach to these themes. This largely consisted of designing credit insurance products that could be easily integrated into e-commerce sites, capable of understanding new types of risk and taking into account increasingly complex transactional flows. In fact, in the case of marketplaces, we must know how to position ourselves in smaller players than we are used to evaluating and insuring smaller amounts versus larger balances than we know how to monitor very well.
How are your tools distributed?
In fact, the actors are divided so that the distribution becomes more complex. We can go through payment players, constituting an integrated payment offer, or include insurance in platforms such as CMS, or even address market place operators directly. Our APIs (note: application programming interface) are versatile and allow for all scenarios.
But, beyond the technical aspects, I will insist on the number one issue for marketplaces, on which their reputation depends: the reliability of buyers, the analysis of their solvency, as well as their payment behavior in order to guarantee adequate payments to sellers. !
Mickaël De Sa will speak at the upcoming Les Enjeux Innovation B2B 2022 conference on February 2 in Paris.