- Case study
An auto finance firm takes the lead in automated collections
Applying digital to deliver a best-in-class collections process
A leading provider of auto finance products in Australia and in the UK.
We analyzed the collections landscape, redesigned dialer operations, automated operations to eliminate manual processes, and enhanced customer experience with self-service tools.
Delinquencies brought under control, operational inefficiencies eliminated in collections, and improved response times.
20%-25% reduction in outbound call inventory, 50%-55% reduction in inbound call volume through self-service, 1% increase in annual revenue by identifying unprofitable accounts, and improved customer experience.
Everyone loves to have a shiny new car in the driveway. And taking out an auto finance loan can be a great way to get one there. But when an Australian banking giant acquired a large portfolio in 2015 from a major bank, it found its sizable collections department was experiencing an unexpected spike in delinquencies.
The bank’s management thought that the most logical and expeditious way to handle this sudden escalation in collections was to add more personnel. Doing so, however, revealed a few previously hidden issues. Adding headcount naturally added to the cost of collections. But soon other challenges were evident in a number of operational inefficiencies, including high customer query volume, dialer KPIs not tied to business outcomes, managers with little visibility into real-time data, and a response process that was primarily manual and extremely time-consuming.
The bank had already been working with Genpact for more than four years on several other transformation initiatives, so they called on our deep expertise in auto finance operations to address its collections concerns by enhancing its analytics capabilities and operational efficiencies.
There were four primary considerations for transforming the bank’s collections process:
In a six-week period, we provided the bank with a transformation roadmap, moving collections to the front with lower costs and improved productivity levels. After an initial diagnostic of the collections process covering operations, dialer, customer query, and collections analysis, we implemented the following solutions:
The full range of improvements identified helped the bank establish a best-in-class collections operations model with higher efficiencies and lower costs. Data-driven decision making with predictive models and visualization delivered significant value to the business, including: