Collection strategy is a sequence of steps created to effectively service accounts falling into the pre-delinquency and delinquency portfolio. It uses the available tools to connect and collect debt from our customer. The leading principle is balance between risk costs (amount collected - performance-Collections cost), and quality (customer experience). Quality will not be compromised in line for the aim for higher performance.
Available tools used in the collection process:
Calls
Inbound
Outbound
- automated bot calling is not yet in scope as we aim to assure high quality in communication with customer (Bank Promise). Intelligent bot calls may be considered in the future
IVMR-Automated messaging for reminders. (Brand Value the Promise-You will always speak to human-Use only as reminder messaging system-The client would be provided the option to talk to a human in the message or cease to receive such message.)
App notification
change of the App design, in app notifications (eg. changing screens to RED)
push notifications
Text messages
Chat messaging
Viber, WhatsApp, FB Messenger
E-mail
note: email is not verified during the onboarding. The channel is though not confirmed
Mail
Skip tracing
searching for alternative customer contacts
Field visit
Litigation (On high ticket items and on selected accounts as part remediation action planning-TDB)
Use of external agencies - 3rd party collections
Debt sale
To manage quality, following processes and systems shall be in place:
Collections Code of Conduct (Base line of all collections efforts guided by Company COC and regulatory policies)
NPS score survey
Regular training to increase collections competencies and Periodic engagement activity to increase brand and team appreciation.
Quality assurance
calls listening by human
calls analysis by AI (tone, script, communication mining)
To manage performance the following shall be in place
Operational KPI (Efficiency while working-AHT, Contact, Utilization,Visits, Attendance)
CE KPI (Collections efficient per group/segment)
Team KPI (Manager/Leader performance)
Collectors KPI (Operator performance)
Promises taken
Promises Kept
Resolution Rate
Recovery targets (Late collection)
Recovery rates
Resolution rates
Payee percentage
To balance performance, costs and quality; segmentation of the portfolio plays key role in setting up effective collections process. Following segmentation is taken as starting point and will be updated regularly based on composition of population and products. Collections Strategy is different for each segment
Customer may move between the strategies based on events (partial repayment, promise to pay). The flow is changed in case the payment is done and would cease once the account is current or has been settled.
Repayment is recognized real-time via integration with Core system.
