Collection process automation

Collection process automation

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Friday, 07 April 2017 17:12

Collection Process automation by Areon Consulting will enable you:

  • to get really tangible business result
  • to effectively use working time of your colleagues
  • to implement controllable processes
  • to keep long-term mutually profitable relations with a reliable client

Collection work scheme

Collection process automation

Process model. The model of process determines the stages of work with borrowers (Soft/Early Collection, Hard/Field Collection, Legal Collection) which are to be automated. It also specifies the correspondence criteria of different stages and transaction conditions between them. Collection organization structure is defined in compliance with who and what role performs.

Strategy settings. This stage develops strategies on how to work with a borrower, defines the sorting process and conditions of being put under a certain strategy and also forms logic links between them.

Collection strategy is a specific work model with a separate group of borrowers. To be enlisted in this group the certain pre-planned conditions (such as specific time of expiration, failure to pay back, ignored calls etc.) must take place. Home financial establishments usually use about 40 different work strategies.

Examples of typical strategies:

  • If the arrear is 5 days, debt sum is more than 500 uah but it is the first time the client faces arrear, one polite phone call will be sufficient to remind him of the debt.
  • If the client has already broken payment obligations twice, doesn’t answer the phone since the previous call but has a credit security, then it is essential to call his guarantor.
  • If the date of court hearing is known, it is important to prepare documents.

Strategy implementation. The strategy procedure is defined within the frames of a typical model of the Collection automation processes based on Oracle Siebel CRM.

Typical model of Oracle Siebel CRM based automation

Periodically (as a rule once a day) data in client profile are updated: changes in account data, arrear increase, % update etc.

At fixed time Collection system automatically gives data base certain conditions and therefore picks debtors among all clients and allocates a proper strategy to each of them. Every strategy contains certain tools which are planned automatically for guarantors.

Automation level directly depends on the number of common links integrated with Collection system and chosen during Siebel CRM development. Sms channel integration in auto mode will chose necessary cell numbers from the general base of debtors who have been assigned to a certain strategy. Text is chosen according to the strategy type and all members of the group will receive individualized sms. In case of Predictive call the call lists with specified conditions are created at the fixed time and call-center campaign begins.

As a result every client gets a correspondent action status. The defining point at stages Soft Collection and Hard Collection is a promise to pay (PtP), at stage Legal Collection the defining point is the result of cooperation with state bodies. Moreover in case there is no contact number the debtor can be automatically passed to the Skip Tracing service.

Benefits

You will get a real tangible business result and controllable processes due to complete automation at setting stage and Collection strategy implementation stage.

Integrated analytical tools will enable you not only to estimate final result but to have detailed analytics on every strategy.

Your colleagues will more effectively use their working time, as automated system will minimize daily operations leaving more time to focus on high quality work with credit portfolio.

Practice says that every Collection officer without automation makes up to eight calls an hour at Soft Collection stage. After automation this figure rises significantly up to 20 calls an hour.

You will keep mutually profitable relations with reliable payers, who face temporary difficulties if you treat a debtor primarily as a client and take into account not only the current situation but the previous history of your relations as well.

Collection process automation based on CRM-system facilities mutually profitable and long term relations with a client.

You will insure your investments because even in case of low demand for Collection processes you will be able to use already experienced system functionality to sell bank services and products. The tool bar will remain the same with only initial data and algorithm to be changed.

Benefits you will receive with Areon Consulting:

  • Experience in automation of different stages dealing with troubled assets, including Pre Collection and legal paperwork
  • Low risk (adapted industry solution)
  • Fast integration (3-4 months)
  • Highly qualified consultants