Many financial services organisations already use analytics to assess clients' potential risk and profitability. But many also fail to apply the same practice when dealing with defaulting clients.
Since 2015 Agilytic has helped financial institutions, services companies and debt collection specialists improve their recovery process in a way that is more efficient, but also more human for the debtor.
All debtors are not the same.
The first thing to realise is that customers ending up in the debt collection department are not the same. Some might present fraudulent patterns, but others miss a payment by distraction because they expect an unrelated reimbursement; not paying can also be the last resort way for a customer to express dissatisfaction towards your organization.
Because each customer is unique, each one needs to be treated as such, even at the collection stage.
Historically, the view of performance for collection operations is centered around quantity: quantity of cases, calls, etc. Through a personalized approach, we can instead optimize a backlog of cases by potential recovered revenue.
Data Science applied to collections
By applying data science to your collection operations, we will combine internal and external data to
- get a better understanding of the behavior and characteristics of your outstanding debtors
- have a finer assessment of the likelihood of recovering the debts
- prioritize cases by amount and recoupment likelihood
- personalize contact recommendations on the optimal channel, message and timing
The impact is thus twofold:
- Effectiveness, by increasing the amounts recouped
- Efficiency by reducing the effort (time & cost) to treat a case until recoupment
Examples of deliverables
- Risk Segmentation Models: combining internal and external data, we build bespoke client models to estimate an individual customer’s propensity to pay.
- Process pricing calculator: automate your decision to pursue each case based on the discounted cash flow (probability to recoup and amount to recoup) and the cost of the optimal recoupment process.
- Legal escalation assessment: score each case to determine the cases needing legal escalation.
- Next best action model: determine the best channel/message/timing for each case.
What our clients say
Agilytic helped us stay ahead of the competition. They brought innovative solutions to our business and helped us better understand our data, improving our processes. They are proactive and highlight original opportunities for improvement while remaining respectful and convivial. Hiring Agilytic was without a doubt an excellent investment! — D. Zovi — Managing Director, Euro Fides
Past successes in recovery
A dunning process that works
A leading debt collection agency asked Agilytic to improve its efficiency. This meant a better understanding of the collection processes and the efforts required from its specialists responsible for visiting customers.
Tackling the “bad debt” problem in healthcare
A major health insurance player was facing a late payment issue that put a major drag on working capital and reduced the capacity to finance strategic projects. They solicited Agilytic to understand better and ultimately reduce accounts receivables by improving the speed of payment recovery.
Knowledge transfer in mind from the start
A project is only successful with the buy-in and understanding of all the stakeholders. That includes the front-line teams that are taking part in the solution-building process. Since everybody contributes to solution building, co-creation dramatically improves the adoption of the solutions.
Also, if your team already has analytical professionals in-house, we happily join forces with them and prepare a comprehensive knowledge transfer at the end of our intervention.
Insights. Actions. Results.
Since 2015, Agilytic helps organizations reach their goals through the smarter use of data. We have completed over 150 successful projects, in financial services and beyond.