Manos MargaritisDeputy CEO

Tech’s Role in Debt Collections

Assess Risk and Make the Right Offer at the Right Time

State of Collections:A Call for Portfolio InsightsModern C&R is complex. Limited credit capacity, stronger regulations and a rise in worldwide NPLs have today’s collectors craving the following:

• The ability to anticipate faster which loans will be low-risk or high-risk to better manage available credit and ensure overall portfolio health.

• A need for both quantitative and qualitative data-driven strategies that are dynamic enough to satisfy regulators.

• Collective insights that give your collectors and decision-makers the data they need to make sound business decisions.

State of Collections:Need for Specialized Collections Software

What collectors need to bridge knowledge gaps, appropriately assess risk and make the right offer at the right time is a robust C&R solution.

The following slides show how collections software can help provide your teams with the data they need to collect more and increase revenue.

Tech’s Role in Risk Assessment

Why is risk scoring important for successful collections?

Scoring helps businesses:

• Accurately assess portfolios at any credit cycle stage, improving business results, identifying warning signals before they become liabilities, and satisfying regulations.

• Improve risk assessment to prevent unnecessary delinquencies or portfolio danger by allowing your organization to implement proactive strategies quickly.

How can technology make risk scoring more robust?

With the increased complexity of portfolios, organizations need solutions that are flexible, responsive and comprehensive.

Collections software offers the rapid response and extensive insight needed to truly keep your finger on the pulse of portfolio risk.

Features you need for improved risk assessment:

1. Account analytics available in real-time from anywhere.

2. Early warning system models that identify pre-delinquency triggers and actions to take.

3. Ability to score and segment portfolios that are actually in delinquency, allowing the right offer at the right time, depending on if they’re in a soft or hard collection phase.

Tech’s Role in Making the Right Offer

at the Right Time

Why is timing so critical?Different borrower stages have vastly different collections needs.

• In earlier stages (soft and pre-litigation), the focus is on customer cooperation. You place a high priority on preserving the customer relationship and minimizing the number of cases that move to later recovery stages.

• In later stages (litigation and recovery), the focus shifts from protecting the customer relationship to protecting assets and minimizing losses.

Why is it important to recognize which stage a borrower is in?

When lenders have insight into a customer’s stage of delinquency, they can make the right offer at the right time for the following benefits:

• Improved collections performance. • Increased likelihood of success. • Higher self-cure rates. • Ability to apply progressive pressure as

borrowers move through each stage.

How can technology help you deliver targeted collections solutions?

To determine which offer is right for which account, you first need technology that can help you segment and correctly assess the portfolios on your books.

Features to explore to make the right offer:

1. Portfolio segmentation that prioritizes accounts based on risk, phase and likelihood of repayment.

2. Account performance insights that make statistical modeling, algorithmic reasoning, strategy visualization schemes, open data architecture and early warning detection possible.

3. Specialized collections software that provides credit risk monitoring, risk scoring, analytics and customer data at a glance.

How could your organization leverage technology for better relationships with customers?

Remember:

• Needs vary greatly based on each portfolio’s unique stage of delinquency. To determine which offer is right for which account, you first need technology that can help you segment and correctly assess the portfolios on your books.

• With the increased complexity of portfolios, organizations need solutions that are flexible, responsive and comprehensive. In short, they need collections software.

Want more expert advice to help you default less and recover more?

The full Collections and Recovery Best Practices Manual has tips and strategies to help your company generate more revenue from each phase of C&R operations.