Faced with the uncertainties of COVID-19, lenders are supporting borrowers as they weather the storm with multiple payment protection and payment assistance programs. EXL is helping lenders to execute these payment assistance and collections strategies with AI-driven analytical models and a proprietary digital platform, EXL PayMentorTM. This allows lenders to focus on building new borrower assistance plans, to develop more resilient service models, and protect liquidity positions through proper risk management.
The lending market that was thriving with significant surge is now post-COVID, quickly transitioning away from loan origination to default management and debt collections to manage a substantial increase in delinquency rates across lenders.
It is important for lenders to help borrowers adjust and navigate through these disruptive times. Protecting borrowers’ liquidity position through proper risk management, and debt collections strategies and technologies is paramount.
Signs of a problem
There are multiple issues effecting the debt collections industry we see today; however, most of them can be detected, prioritized and managed to better position businesses.
We have identified the top 20 symptoms that, if not given appropriate attention, can lead to dire consequences for lenders. If you have at least one of those 20 symptoms, your debt collections strategy needs improvement.
Most of the retail lenders started offering payment assistance programs which include an extended grace period, a forgiveness of late payment charges, and forbearance of foreclosure sales or evictions.
The question is which program to offer and through what communication channel to best meet the needs of the customer while also protecting against fraud and misuse. The channel and sequence of communication with a customer is extremely important, since the use of the phone channel to manage delinquencies is expensive, many times intrusive, and has not driven the kind of collections outcomes that were envisaged.
The current environment has created a unique set of challenges for the lending and loan servicing organizations and more than ever, they need to focus on the Trifecta of outcomes:
- Lower cost
- Improved business outcomes
- Better customer experience
EXL is helping clients navigate through the crisis by utilizing EXL PayMentorTM, a digital debt collections solution that enables retail lenders to maximize collections and recovery effciency throughout the delinquency life cycle.
Features of EXL PayMentorTM include
Amount-to-collect driven account-level segmentation logic, utilizing machine learning and multiple sources of consumer data
DIGITAL COMMUNICATION SUITE:
Seamless Omni-channel communications leveraging the most advanced tools in the market, such as Pega Collections and AWS PinPoint
CUSTOMER SELF-SERVICE PORTAL:
Customized treatment strategy is executed through a highly customizable customer self-service portal
BEHAVIOR-DRIVEN CUSTOMER JOURNEYS:
Highly personalized incorporating different tones and treatments
PERFORMANCE MONITORING TOOLS:
Customizable and interactive dashboards that cover the collections cycle end-to-end
EXL partners with several leading clients to create real, measurable value through operation outsourcing service including loan origination, servicing, default management and debt collections. We help clients build intelligent operations by deploying advanced analytics, AI, robotics and other domain-specific technology solutions.
EXL helps lenders with operations management, digital transformation, and advanced analytics to improve customer experience and reduce operational costs and cycle times from days to hours. With several years’ experience in the retail lending and debt management space, we are able to bring solutions and expertise rapidly to manage borrower communication, loan modification and default management, including digital execution.
The following are all critically needed service elements during the current crisis:
SPEED – prior experience and ability to immediately deploy solutions and required capacity of qualified staff within the US and at offshore locations
Quality – staff highly experienced in similar customer care and loan modification functions requiring empathy and appropriate communication skills
Flexibility – always prepared to work collaboratively and go above and beyond to meet customer requirements
Digitally-native – leveraging the best-in-class tools and technologies available in the market.
Get in touch with our experts:
(Leader – Collections Strategy and Operations)
(Leader – Collections Analytics)
(Vice President – Banking Analytics)
(Vice President – Digital Engineering)