Since the European Central Bank began raising interest rates in July 2022, financial institutions have been wary of the possibility of a sharp increase in non-performing loans. Although the ECB is likely to lower the official price of money in 2024, banks need tools to optimize their recovery efforts and increase the industry's resilience.
AI applied to advanced recovery models
With more information available and advances in artificial intelligence, new Advanced Recovery Models are being developed that streamline processes and optimize collections. Integrating new technology can significantly improve collections, process efficiency and cost management.
At Management Solutions, we have been working with leading financial institutions for years to help them meet the challenges of debt recovery.
Specifically, our value proposition in applying advanced recovery models focuses on the following areas:
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Strategy customization: using advanced data analytics and machine learning techniques to accurately predict the likelihood of collection. Based on payment history, debtor behavior, and other indicators, models can be adapted to individual situations to provide customized strategies.
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Resource optimization: advanced models allow financial institutions to prioritize management by probability of success, focusing on the most promising cases and avoiding unsuccessful efforts.
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Business Analytics: helping companies to design dashboards that provide business intelligence, track predictions, and extract areas of interest based on model scores.
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Model deployment and automation: using our proprietary state-of-the-art tools, such as ModelCraft™, we help organizations automate their modeling processes to respond quickly to changes in demand and business cycles.