Problem Statement

A US based Fintech was experiencing 30% higher delinquency over last year. Following areas were identified as the key root causes for the same:

  • Phone based strategy could not be scaled
  • Contact strategy was primarily driven by Days Past Due status
  • Lack of collection specific models to provide differentiated treatment

This resulted in 20% higher time to collect, 500 Bps lower collection rate and 50% higher cost to collect YoY

Approach

 

Impact

20% higher collection rate

Up to 30% reduction in collection cost for select segments

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