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Case Studies

To build collection infrastructure for a Private Bank

Business Need:

One of the largest Private Banks approached us to work with them in designing and implementing an efficient collection infrastructure for their existing retail loans. Once implemented, the Bank wanted to move into retail lending with more products and in a more aggressive manner.

Our Solution:

Based on the collection strategy defined by us, our analytics team did the data segmentation, developed the delinquency score cards and worked with the client in the implementation of these scorecards.
 

Process:

Based on a series of meetings with the management, the first step in the process was to do a gap analysis. One key element here was the collection CRM which was the center of the collection infrastructure. The bank had already contracted a CRM vendor who was in the process of developing this for them. We did a detailed gap analysis of the collection CRM and created the functional specification to ensure that these gaps were covered appropriately. We also interacted with the vendor to ensure implementation was appropriately done.After assessing the Bank’s existing infrastructure blocks we focused on enhancing efficiency of (a) the external call center and (b) management of the collection agencies being used.To achieve this we reviewed the call center operation and developed a new operating manual. We also met with the call center management to ensure they understood their function and its criticality. We assisted our client in developing capacity planning and performance parameters for both the call center and the collection agencies. We developed an operating manual for the agencies with the twin goals of enhancing their performance while managing operational risk.

Result:

Overall impact of our six month project has been a huge increase in the strategic importance and understanding of the collection process. Enhancement of management’s capability to see and manage delinquency via better targeting and management of its call center as well as collection agencies. The Bank has brought down both its delinquencies and write off’s and has embarked on an effort to increase its retail loan book.