Automation of work processes with problematic debt
Theme: Industry solutionsAre you interested in making the Collections ’employees’ activities deliver a real measurable result? Do you want professionals to use their working hours more efficiently? Are you trying to make the problem management process manageable? Do you want to maintain lasting mutually beneficial relationships with honest payers?
If at least one answer to the above questions was yes, then you should read the description of the solution for automation of work processes with problematic debt from our company.
Collection Process Automation by Areon Consulting will allow:
- Get a real measurable business result
- Employees’ working time effectively
- Implement controlled processes
- Maintain lasting mutually beneficial relationships with honest payers
Scheme of work Collection
Process model. The stages of work with borrowers (Soft / Early Collection, Hard / Field Collection, Legal Collection) are subject to automation. The criteria for compliance with one stage or another and the rules for transition between them are specified. Depending on who and what roles they perform, the appropriate organizational structure of the Collection service is determined.
Setting up strategies. Develop strategies for working with borrowers, determine the conditions for falling into a particular strategy, as well as forming logical relationships between them.
Collection strategy is a characteristic model of behavior with a separate group of borrowers, in order to get into which must be fulfilled the conditions planned in the system (a certain number of days of delay, unfulfilled promise to pay, ignoring calls, etc.). In domestic financial institutions, as a rule, about 40 different work strategies are used.
Examples of typical strategies are:
- If the delay of payment is 5 days, the total amount of the debt exceeds 500 UAH. But the client first allowed the delay, then it is enough to remind him by making a «polite» call.
- If a customer breached promises of payment twice, they were not able to call him as a result of the last contact, but he has a loan, then a call to the guarantors must be made.
- If the date of the hearing is set, the documents must be prepared.
Execution of strategies. Strategies are governed by the Oracle Collection Model Automation Model Siebel CRM
Periodically (as a rule, once a day) there is an update of the data in the client’s profile: change of account data, increase of days of delay, updating of %, penalties, etc.
At the set time, the Collection system automatically imposes on the database certain conditions based on which from the total mass of clients all debtors are identified and distributed according to strategies. Each strategy is «tied» to a specific set of tasks that are automatically scheduled for execution for those responsible.
The level of automation depends on the number of channels of interaction integrated with the Collection system. Thus, when integrating with the SMS channel in automatic mode, the correct mobile numbers will be selected from the general database of debtors who have been included in the corresponding strategy. Depending on the type of strategy, the text is determined and personalized SMS are sent to all members of the debtor group. Predictive mode calls are automatically created with predefined call lists and a campaign is started in the Contact Center.
Each contact is assigned an appropriate status for the action. At the stages of Soft Collection and Hard Collection, the promise of payment (PtP, promise to pay) is crucial, at the stage of Legal Collection – the result of interaction with public authorities. In addition, in the absence of valid contact numbers, the borrower can be automatically transferred to Skip Tracing.
Benefits received
You will get real measurable business results and controlled processes through full automation as you set up and execute Collection strategies.
Built-in analytical tools allow you to evaluate not only the final results but also provide detailed analytics for each individual strategy.
Your employees will be able to use their working hours more efficiently, as the automated system will minimize the execution of routine operations and focus on quality work with the loan portfolio.
As practice shows, without automation, each employee of the collection service at the stage of Soft Collection has time to make about 8 calls in an hour, and after automation, this figure increases to 20.
You will maintain a mutually beneficial relationship with honest payers who are experiencing temporary difficulties due to the fact that you will treat the debtor first and foremost as a client and when dealing with him not only the existing conditions, but also the previous history of the relationship.
Automation of Collection processes on the basis of CRM-system helps to restore mutually beneficial relations with the client and to preserve them for a long time.
You will «insure» your investments by reducing the relevance of the Collection processes in the future to use the proven functionality of the system, for example, to sell banking products and services. In this case, all the same tools will be used, only the original data and algorithms will change.
Advantages of working with Areon Consulting:
- Experience in automating the various stages of dealing with problematic debt, including Pre Collection and litigation
- Minimal risks (adapted industrial solution)
- Short implementation period (3-4 months)
- Qualified consultants
- Dealing with Debt (Collection)
