Late Stage Collections
Our specialized multilingual collections professionals prepare over 40,000 contacts per day to optimize our dialer strategy. We offer focused late stage collections that utilize payment-restructuring plans for greater collections results. These plans offer online payment options for future payments, streamlining the process for the customer and optimizing the debt collection process.
Genpact relies on a strong mix of analytics and processes to focus on late stage collections and improve results. We make outbound calls to customers who have been delinquent for a significant period of time (usually 4-7 months), focusing on negligence and reducing losses. Through behavioral scoring and analytics, we identify the accounts with a high probability to charge off in the next 60 to 90 days. We offer settlement programs based on risk score and balance at risk for a potential drop of 26 basis points in charge-off rates.
Client: A Global Diversified Personal Finance Provider
A company with a wide range of products and services needed to reduce losses that were occurring due to the reduction in collections efficiency on accounts overdue by 6-7 months. The client's late stage volume was collected in three sites—the in-house collections team, the outsourced first party (being Genpact India), and the outsourced third party collections agency. Genpact’s principal challenge was to reduce losses resulting from lowered collections efficiency on 6-7 month payment-due accounts and improve its collection efficiency performance compared to the in-house and third party agency.
Genpact’s solution team, which included subject matter experts from the client and Genpact coupled with process-improvement specialists, conducted a comprehensive and systematic review and analysis of the root causes with the key process owners. This root cause analysis revealed gaps in reporting on agent productivity metrics and a significant variation in the agent’s performance, stemming from a lack of awareness about the frequency of change to operating procedures.
To address agent performance variation, the team designed and implemented a comprehensive associate evaluation system. This established a common, standard, and transparent means of measuring the performance and output of individual personnel and the changes were incorporated into the operating procedures. In close collaboration with the client, Genpact undertook a Lean Six Sigma project on improving Multiple Electronic Payments (MEP) delivering a significant improvement to the baseline performance. Genpact set up a robust reporting structure and collaborated on an Out Pulsing project to improve contact rates. In addition to the specific projects, a best practice-sharing platform was set up between the teams, which enabled the various collections teams to benefit from the various improvement programs being driven by them individually. Because of this engagement, the financial services provider improved Collection Efficiency (CE) to save losses around US$8.5 million. Genpact was consistently ranked #1 among the three competing teams.