In crisis situations, and especially in the current context, recovery areas are particularly relevant, given their highly countercyclical nature. In particular, in a scenario of low margins and higher expected volumes, the role of Collections takes on special relevance in order to manage the balance between:
- Minimizing the level of non-performing assets, acting quickly to differentiate temporary from structural credit difficulties, as well as identifying debtors with a willingness to cooperate and quickly implementing relevant actions.
- Taking care of the relationship with customers, making sure the collections, risk monitoring and business areas work in tandem so that good customers feel supported at times of difficulty.
- Adequately managing reputational and conduct risk, giving consideration to the impact that any action taken would have on the clients.
At Management Solutions we have experience in the Collections field within different types of organizations. Our approach, aligned with market standards, begins with the formulation of a strategy at the highest organizational level for its subsequent deployment based on five pillars:
- Business model and organization, including the review and definition of the transformation plan for the collections role based on best market practices and taking account of regulatory requirements.
- Operational model, with a dual approach:
- The enhancement of digital channels as an additional lever for collections and the review of the collection solutions (restructurings, assets in lieu of payment, etc.).
- The industrialization and automation of processes and adaptation of current processes to the new needs.
- Recovery intelligence, which covers:
- The definition of advanced segmentation and the use of analytical techniques to determine the optimal strategy at the segment level.
- The use of analytics to provide solutions for proactive management of debtors, through pre-approved products.
- The development of anticipatory models and alert systems (Early Warning Indicators).
- Information and reporting, which covers 3 areas:
- The development of informational models and dashboards.
- The situation diagnosis and definition of plans to remedy the quality of data as a result of the new analytical and reporting needs of organizations.
- The creation of performance statements for the collections business.
- Recovery management systems
- Support in evolving current tools for the implementation of solutions for digital channels, strategy engines and execution workflow.
- Integration of collection solutions into the business architecture.