SaFi Bank Space : Agency KPI and Evaluation

The purpose of the document is to provide a description of External Agency Collections key performance indicators and evaluation of EXA performance.

The document shall cover;

•  Agency Performance Evaluation

•  Quality Assurance Agency Parameters

• Agency Termination

•  Agency Score Card

• Commission Table

A. Agency Performance Evaluation

The External agency’s performance and evaluation shall be monitored on the following aspect.

 1. Cash Collections from assigned accounts subject to the following conditions. (Financial)

The actual collections servicing of there endorsed accounts

•   If for regular active accounts those which are <90DPD - Recovery from due monthly installment/s

• If for regular accounts and are <90DPD which are endorsed from fraud endorsed from Fraud. Recovery Rate based on full value of amount assigned.

•   If accounts are terminated and those who are >90DPD. Full value of amount assigned.

1.1.Achievement rate versus goal set.;

2.Compliance and Quality

QA and Compliance shall be a major part of the EXA’s monthly score card. Collections shall collate information regarding collections servicing that falls under the EXA’s scope of work.

This insures that the group is adhering to the standards set by the Bank and its Regulators towards its scope of work.

• EXA shall be monitored as part of the regular operations.

  • Quality guidelines shall be defined by the bank based on the following standards. (To be set)

    • Bank policies and Collections Do’s and Dont’s

    • Regulatory requirements for collections.

    • Complaints handling, Monitoring and Resolution.

  • The Banks Quality monitoring and training team shall regularly evaluate calls made by the EXA to insure compliance to set quality standards.

3. Cooperation

As part of the over-all engagement the EXA’s shall be required to fulfill action items that will be required by the bank. Such activities maybe administrative in nature but is important in the management of the engagement between the Bank and the EXA

• EXA shall be required to submit all call recordings done per week, per agent to the bank. The banks collections quality monitoring team shall evaluate the call recording based on the QA paramenters set for the EXA. (Parameters shall be defined in the EXA Do’s and Dont’s)

• EXA’s shall be required to provide the following information for each contact touch/worked. ; Customer name, Account number, Date of contact, Call disposition, Alternative contact number, other information deemed important by the Collections team.

• EXA shall be required to utilized the agency module which shall be the basis of all agency actions on endorsed accounts. The said module shall also be a basis of the collections efficiency on endorsed accounts. This shall form part of the agency operational report.

  • The following information shall be obtain from the EXA;

a.)    Loan Number

b.)   Number of times acted or touched upon (actions may be thru calls, SMS, visits, etc.)

c.)    If action is made thru calls, the name of the person contacted (Client, 3rd pty)

d.)   Disposition Codes (PTP, LM. RTP, HU, Busy, etc)

e.)   Other details as may be specified in the AOR Form to be provided by the banks collections EXA Team;

B. Quality Assurance Agency Parameters

• The QA shall evaluate 5 call recordings per agent per week.

  • Process shall follow the general requirement for collections quality.

• The QA shall conduct call calibrations of at least once a month for every agency.

• The EXA shall also be rated in terms of timeliness in the submission of required materials to the Bank for Evaluation

*Agency evaluation form for TBD.

1.QA Guidelines & Sanctions

A set guide for identifying acceptable and unacceptable actions for external agencies.

1.1 Major Violations

A. DATA PRIVACY ACT/Fair Debt Collections Practicing Act.

1.  Discusses the loan account information to unauthorized person.

a. Verification at the beginning of the call is required.

2. Collecting a debt from a 3rd pty.

3. Initiate client contact before 7:00AM to later than 9:00PM

B. UNPROFESSIONALISM

1.Argues with the client wherein agent raises his tone of voice to win over the conversation

2. Usage of profane and abusive words during the call.

3. Badmouthing other competitors to gain attention from the client

4. Pressures the contact reference to give the client's updated information or pay the loan on behalf of customer.

5. Threatens the client to pay by discussing consequences that is beyond the agreed collection practices.

6.Misrepresentation: Agent represents himself as someone who he or she is not.

C. MIS-INFORMATION

1.Asking for the higher amount than the outstanding balance that will have a personal benefit to the agent.

2.Promising to waive penalties or loan balances even if no instructions or authorization are provided to the Agency.

Minor Violations

1. Mis-tagging the status of the account in the AOR forms/Module.

1.Based on the agreed QA score, Agency should have minimum of 90% QA score for the month.

2.Agencies who got 79.99% and below will be tagged as failed on the covered month.

C. Agency Termination

The bank reserves the right to terminate engagement with a contracted agency due to cause. Such will is defined in the set Service level agreement set on the onset of the engagement and can be modified based on ;

• Business Requirements

• Regulatory requirements.

Termination shall be initiated if the following events are triggered during the engagement;

• EXA is unable to perform at par with the agreed set goals by the bank for a maximum of 6 consecutive months.

• EXA has violated the agreed code of conduct in the fulfillment of its business with the bank.

• EXA has incurred a violation which places or can place the bank in a difficult position with its Regulators.

Financial Evaluation and agency Score Card

(Refer to samples below)

• Financial

• Agency Score card;

Parameters Definitions:

•  Financial Performance

a.)    Actual Collections/Recovery percent on account endorsed.

c). Achievement versus goal set

• Code of Conduct and QA

a.)    Complaints Handling

b.)   Complaints Resolution

c.)    Regulatory Compliance

d.) Quality Assurance Score

-Internal QA standards

• Cooperation

a.)    Delivery of reports and other required action items

Commission Scheme

Agency Collections agencies shall be paid on a no-collection no payment scheme.

The following shall be the basis for the rates to be provided to a collections agency as they work on collections efforts for the bank.