The client, a top 10 bank in the US, saw depleting performance in terms of the accuracy of existing risk segments. In the last few years, it observed an increase in the operational cost of its collections operations. The challenges were as following:
Sub-optimal contact and offer strategy: With high number of contacts per customer, the cost of service was escalating. The bank was not effective in when to pitch what offers to delinquent customers. It was wasting resources and a number of man-hours in the sub-optimal process.
Deteriorating performance of self cure and roll rate segment strategy: The bank’s delinquent customers and its self cure / roll rate percentages were headed southwards. Essentially, more customers were rolling from the 60-day overdue period to the 90-day one, thereby sharply affecting the roll rate percentages.
Incedo LighthouseTM enabled the bank to run a leaner, much more efficient in-house collections operations. It also drastically reduced credit losses and dollar write-offs. Some of the prominent benefits were as following:
