Early Stage Collections
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Early Stage Collections

Overview

Genpact’s early stage collections services offer outbound calls to customers in the early stages of delinquency (usually 2-3 months past due date). Our unique approach helps fine tune the debt recovery process with automated solutions and focused analytics offered by nine global delivery centers.

Approach

Our approach focuses on analytics, automated solutions, and qualified people to optimize collections success. We define accounts most likely to roll, run off, self-cure, default on first pay, or respond to treatment by utilizing balance, risk, demographics, performance, psychographically based segmentation, collections/recovery scorecards (account and customer), roll rate models, behavioral risk scorecards, scorecard validations, and monitoring. This gives us the best strategy for treating collections accounts.

Employing analytics helps determine who to contact and what the best time and method of intervention are. Treatment and channel optimization and “Best Time to Call” models ensure that when the call is made, it fits the right timeframe to optimize contact. Segmentation analytics define areas that generate good cash flow with minimal expense, low cash flow, and profiles based on collections attributes for an optimized contact strategy. By utilizing these methods, we can redeploy resources from low to high segments for annual loss savings; for one client, this resulted in a savings of US$3.6 million.

Client Successes

Client: A US Consumer Finance Major
A collections and recoveries Center of Excellence employing 60-plus full time employees experienced a drop in right-party collection contacts from 100 to 15 basis points. This drop from best-in-class status resulted in lower collection efficiency and negatively affected loss goals. Genpact determined that calls were not being placed during the “Best Time to Call” intervals because of low awareness among collectors of the best days and times to place calls. In addition, the same group of collectors worked simultaneously on multiple client and due stage account files, increasing the odds of calls being placed inappropriately. To solve this problem, Genpact aligned agent schedules to meet “Best Time to Call” intervals and created client groups to increase the percentage of attempts and hours within the “Best Time to Call” timeframes. Completion rates rose from 39-70 percent for a US$2.05 million reduction in net losses.

Client: A US Consumer Finance Major
A collections and recoveries Center of Excellence employed over 137 full-time people in outbound collections to contact card holders and made payment arrangements through Payment Promises. A poor rate of promises kept negatively affected the loss goals for the company. Genpact analytics and benchmarking strengths were used to determine that electronic payments were popular among customers but were not being used to its full advantage. Analytics were also used to determine what payment options customers would most benefit from. By training employees on these methods and raising awareness of the popularity of online payment methods, the rate of promises kept increased 13.6 percent for an annualized Net Loss Saving of US$3.4 million.