Application Processing

This component evaluates consumer’s credit capacity by mining and collating information from different internal and external sources. The final score that is generated helps in identifying the potential credit risk, which could be used to accept or reject the loan application.

Risk management

Early identification of bad debt can help increase the chances of collecting the overdue revenues. This needs to be done by regular monitoring of billing statements, comparing customer profiles and payment records to get greater visibility on the repayment capabilities of the customer. This is also instrumental in early fraud detection.

Collections workflow

This component helps create sophisticated decision trees that can be applied to specific accounts based on risk, account profile and payment track record. The system works on a pre-defined set of rules that can be used by the collections team across each account.

Communications protocol

Usage of automated web-channels and other communication protocols helps minimize the involvement of collections agents at the call centers. Using sophisticated technologies, such as IVR and VMS, companies can automate outbound messaging. New technologies also provide for inbound messaging capabilities that help in case resolution without agent intervention.

Case Resolution

There are three ways of settling the debt, viz. paying in full, or settling the debt with a third-party agency, or being sold as a part of debt portfolio. Even though these activities require significant human intervention in terms of negotiation, online tools can now facilitate some settlement activities for selected groups that are willing to use web-based technologies.

Analytical tools

Advanced analytical tools use artificial intelligence to create different scenarios and propose unique resolution workflows in order to maximize recovery amounts and shorten the collections timeline.

Conclusion

The CCA solutions help in improving recovery amounts and increasing process efficiency, by using a multitude of technologies and tools that obviate the need to add more collections agents. With information availability being the backbone of collections process, right from early identification of defaulters to risk management, such systems provide for greater productivity and success of collections process.

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