According to US Consumer Financial Protection Bureau (CFPB), 39% of Complaints Concern Debt Collection. Out of those 39%, the most common category of complaint received is “attempts to collect on a debt that a consumer says is not owed.”
Debt collection is a key element in the growth vision of lending functions of the banks and it is currently plagued by various challenges.
Common challenges that you may concur with
- Absence of a flexible collections strategy and prioritisation
- Lack of an integrated view of the customer
- Reactive approach in disputes/collection
- Inaccurate provisioning
- High operational inefficiencies and costs
All these challenges lead to “Ineffective customer collections”.
Road to effective collections
From our experience, we have learnt that financial institutions need to understand pulse of their customers –behaviours and patterns towards their debt, and then build collections strategy around that. Banks generate massive data, which should be effectively leveraged to understand what communication channels do the customers prefer, which agent should handle more vulnerable customers, what kind of recovery plans would work the best for customers.
Infosys BPM Collections offering focusses on 5R’s:
- Right Customer
- Right Channel
- Right Time
- Right Agent
- Right Message
To learn more about Infosys BPM Collections Transformation Program, download our Flyer/Brochure on “Transform debt collections Holistically with Infosys BPM”
Click here to Download