The Collections Function of the Future — A Customer-Centric Approach

Executive Snapshot

• Figure: Executive Snapshot: The Collections Function of the Future — A Customer-Centric Approach

Situation Overview

• The New Collections Value Proposition

• Adapting for the Future — Giving up Short-Term Gains for Long-Term Prosperity

• Effectiveness

• Cost

• Risk

• Customer Experience

• Overall Approach

• Current Conditions Ripe for Change — Reasons for Changing Now

• The Rise of Omni-Digital Consumers

• 24 x 7 Society

• Tech Innovation

• Rising Customer Communication Opt-Outs

• Lenders No Longer Able to Ignore Collections' Impact on Customer Satisfaction

• Escalating Emotions

• Contact Frequency

• Lack of Control

• Experience Timing

• Lenders — Tailoring Collections Approaches Based on the Risk and Reward Associated with Each Customer

• Low Expected Losses and High-Value Relationship

• Low Expected Losses and Low-Value Relationship

• High Expected Losses and High-Value Relationship

• High Expected Losses and Low-Value Relationship

• Transforming the Function

• Lenders — Focusing on Key Principles to Guide the Design of the Collections Function of the Future

• Personalized

• Accessibility

• Risk Based

• Proactive

• Data Driven

• Responsive

• Flexible

• Leading Practices in Collections to Support the New Value Proposition

• An Effective Integrated Messaging Approach — Among the Most Critical Components of a Successful Collections Function

• The Target Operating Model of a Leading Collections Function

• Proactive Pre-Delinquent Outreach

• Initial Communication Attempt

• Initial Triage/Assignment

• Ongoing Contact Strategy Adjustment

• Inbound Contact Management

• Offer Presentation

• Additional Borrower-Support Options

• Follow-Up

• Completed Payment

• Required Changes — Three Key Areas

• Borrower Contact Strategy

• Resolution Options

• Interaction Approach

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• Related Research

• Synopsis