Collections & Recoveries Solutions

Document created by Makenna.Brei Advocate on Aug 2, 2017Last modified by neillcrossley@fico.com on Sep 8, 2017
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With FICO® Optimization Solutions for Collections & Recoveries organizations can:

  • Enhance collector performance by targeting resources to the right accounts.
  • Improve roll rates while balancing capacity and collection expenses.
  • Simulate strategy impacts by predicting customer reaction to various treatments.
  • Easily update strategies based on portfolio, economic and regulatory shifts.
  • Adjust policies according to seasonality.
  • Propel recovery rates via optimized agency management and settlement capabilities.
  • Drive stronger customer connectivity through contact channel optimization.

 

FICO® Optimization Solutions for Collections transforms collections and recovery (C&R) effectiveness and customer connectivity by applying powerful, easy-to-use analytic tools to address business objectives, such as optimal resource allocation and roll rate reduction. It leverages sophisticated, patented mathematical techniques that help calculate the optimal actions to take among many choices, given business goals and constraints. Benefits are greatly increased when Collections Optimization is integrated with FICO® Debt Manager solution, FICO® Placements Plus® service and FICO® Customer Communication Services to provide a comprehensive debt management platform.

 

Balance conflicting profit drivers

Provides benefit across collections

Delivers more than a Strategy

Helps organizations of all sizes strike a balance between loss reduction, resource challenges and operational constraints to address increasing concerns over maximizing profitability and managing customer satisfaction.From pre-delinquency and early stage collections through later stage and recovery activities, FICO Optimization Solutions for Collections has shown significant performance improvements can be achieved. Provides insights based on multiple “what if scenarios” that seek to balance tradeoffs between goals and constraints, such as charge- off losses and resources.

 

CASE STUDY: European Financial Institution gains significant improvements in early collections

Other Collections & Recoveries Examples

 

Business Challenge:

  • Improve performance of early stage collections strategies on unsecured portfolios.
  • Reduce roll rates.
  • Achieve this without increasing expenses or headcount.

Results:

  • 3-month KPI: Bucket 1-Bucket 2 roll-rate reduced by 3%.
  • 6-month KPI: Bucket 1-Write-off roll-rate reduced by 10%.
  • 3-year ROI expected to be 24:1.

Sample Collections & Recoveries Decision Areas where Optimization can be applied

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More Information: 

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