Digital Collections - digitization of debt collection for a large US fintech
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![Collection Rate Impact](/sites/default/files/inline-images/paymentor1-two%5B1%5D.png)
20% higher collection rate
Up to 30% reduction in collection cost for select segments