Collections and recovery (C&R) is changing. Gone are the days when a simple phone call or touchpoint were enough to collect. Now, customers and clients are multi-channel and often have multiple debt obligations. They generate more, and more sophisticated, data than ever that impacts the risk on a bank’s books.
This new landscape means that banks need specialized, sophisticated collections software to cope with tough markets, stiff competition and increasing regulatory pressures. These specialized solutions offer unprecedented insight into risks and customers that help organizations capture more revenue from existing credit obligations.
Banking groups in particular face unique challenges when it comes to selecting a reference collections and recovery solution, including:
It’s clear that banking groups have different needs when it comes to C&R. But how do they find a solution tailored for their specific operations?
Best practices guides, also known as blueprints, are the best way for banking groups to manage bad debt and C&R activities across subsidiaries in different geographical locations.
The blueprint approach provides:
A blueprint is not a set of pre-designed C&R strategies to be implemented by all subsidiaries. It is a framework for designing these strategies.
This framework is tailored to the environment, capacity, portfolio and IT infrastructure of each subsidiary. It sets the principles that should be respected by all credit-providing entities—regardless of their size and country of operation.
Additionally, it doesn’t have to be restricted to a banking group’s business strategy or technological infrastructure. It can also span the relationship between headquarters and countries, C&R maturity of individual countries/subsidiaries, or back-office systems unification and consolidation.
One of the major benefits of a blueprint is the ability to select a blueprint that spans different key operations, including:
Once applied to any one of the above operations, the blueprint approach offers benefits for an entire banking group that include:
A blueprint-based C&R implementation must be able to be deployed with flexibility and scalability in mind.
That includes being able to support multiple application instances running in the same infrastructure. This way, multiple installations with different portfolios, currency, languages, etc. can be hosted under the same physical or virtual server(s).
EXUS has partnered with banking groups to implement blueprint-based C&R systems that have provided headquarters and subsidiaries with systems that substantially increase collections results, support local and group KPI monitoring, and show ROI just months after implementation.
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