Infographic - The Road to Collections Recovery
1
IMPROVING COLLECTIONS OPERATIONS with Data-Driven Portfolio Scoring An effective scoring strategy acts as a compass, leading you to better predict which consumers in your debt portfolio have the highest likelihood and ability to pay. MITIGATE RISK through less calls, less liability YOUR BUSINESS STRATEGY BUILT AROUND PREDICTIVE ANALYTICS As operating expenses increase and regulations tighten, agencies are looking to automate operations for greater efficiency and profitability. THE FUTURE OF COLLECTIONS ALL DEBT TYPES within 12 months MEDICAL ACCOUNTS TELCO AND UTILITY BANKCARD RECOVERY SCORES ARE AVAILABLE FOR TESTING AND VALIDATION on portfolios through retrospective analyses. Click the button below to take the next step on the road to recovery. Sources: 1. “Collection Agency Operations and Technology Survey”, BillingTree, 2016. 2. Verified in the last 6 months, TransUnion Consumer Credit Database, June 2016. 3. TransUnion’s Q1 2016 Industry Insights Report. Year ending 3/31/16. Year-to-date numbers as reported by third-party collectors and debt buyers. DOWNLOAD THE FREE INSIGHT GUIDE NEW TECHNOLOGIES enhance collections effectiveness 1 2 3 CLIENT EXPANSION COST REDUCTION STRATEGIES TOP 3 PRIORITIES AS RANKED BY ARM RESPONDENTS IN 2016 SURVEY 1 $28.58 B YTD Q1 2016 $148.92 B Third-party accounts 152.16 M In third-party collections COLLECTIONS INSIGHTS IDENTIFY THE BEST ACCOUNTS 1 2 3 4 PRIORITIZE INVENTORY by propensity to pay BALANCE TOTAL NEW Number of ACCOUNTS 50 40 30 20 10 0 PRIORITY LEVEL D 5% Bottom 30% C 13% Middle 30% B 36% Top 30% of remaining inventory A 47% Top 10% of scored accounts Percent of money recovered SCORING RESULTS SNAPSHOT Use a Recovery Model that considers behavior by account type INCREASE PROFITABILITY by collecting more, faster Rank propensity to pay with broader data sets & recent economic conditions Recover more with the same resources by prioritizing your accounts and focusing your most skilled agents on those with highest propensity to pay IMPLEMENT A SCORING STRATEGY AS THE BACKBONE OF OPERATIONS New data and technology can help WHAT IS THE ROAD TO RECOVERY? DIFFERENTIATE BETWEEN CAN’T PAY & WON’T PAY Leverage new predictive risk and recovery scores to: Ability to pay Likelihood to pay SKILLED AGENTS Gain a deeper view into consumer behavior using historical trends and credit characteristics with the strongest signal Collections by the Numbers 3 64.7 M U.S. consumers with one or more current collection tradeline 2 39.53 M YTD Q1 2016 SHARE
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Transcript of Infographic - The Road to Collections Recovery
IMPROVING COLLECTIONS OPERATIONS with Data-Driven Portfolio Scoring
An effective scoring strategy acts as a compass, leading you to better predict which consumers in your debt portfolio have the highest likelihood and ability to pay.
MITIGATE RISKthrough less calls, less liability
YOUR BUSINESS STRATEGY BUILT AROUND PREDICTIVE ANALYTICS
As operating expenses increase and regulations tighten, agencies are looking to automate operations for greater efficiency and profitability.
THE FUTURE OF COLLECTIONS
ALL DEBT TYPES within 12 months
MEDICAL ACCOUNTS
TELCO AND UTILITY
BANKCARD
RECOVERY SCORES ARE AVAILABLE FOR TESTING AND VALIDATION on portfolios through retrospective
analyses. Click the button below to take the next step on the road to recovery.
Sources:1. “Collection Agency Operations and Technology Survey”, BillingTree, 2016.
2. Verified in the last 6 months, TransUnion Consumer Credit Database, June 2016.3. TransUnion’s Q1 2016 Industry Insights Report. Year ending 3/31/16. Year-to-date numbers as reported by third-party
collectors and debt buyers.
DOWNLOAD THE FREE INSIGHT GUIDE
NEW TECHNOLOGIES enhance collections effectiveness 1
2
3
CLIENT EXPANSION
COST REDUCTION STRATEGIES
TOP 3 PRIORITIES AS RANKED BY ARM RESPONDENTS IN 2016 SURVEY1
$28.58 BYTD Q1 2016
$148.92 B Third-party accounts
152.16 M In third-party collections
COLLECTIONS INSIGHTS
IDENTIFY THE BEST ACCOUNTS
1
2
3
4
PRIORITIZE INVENTORY by propensity to pay
BALANCE
TOTA
LN
EW
Number ofACCOUNTS
50
40
30
20
10
0
PRIORITY LEVEL
D
5%
Bot
tom
30
%
C
13%
Mid
dle
30%
B
36%
Top
30%
of
rem
aini
ng in
vent
ory
A
47%
Top
10%
of
scor
ed a
ccou
nts
Per
cent
of
mo
ney
reco
vere
d
SCORING RESULTS SNAPSHOT
Use a Recovery Model that considers behavior by account type
INCREASE PROFITABILITYby collecting more, faster
Rank propensity to pay with broader data sets & recent economic conditions
Recover more with the same resources by prioritizing your accounts and focusing your most skilled agents on those with highest propensity to pay
IMPLEMENT A SCORINGSTRATEGY AS THE BACKBONEOF OPERATIONSNew data and technology can help
WHAT IS THE ROAD TO RECOVERY?
DIFFERENTIATE BETWEENCAN’T PAY & WON’T PAY
Leverage new predictive risk and recovery scores to:
Abilityto pay
Likelihood to pay
SKILLEDAGENTS
Gain a deeper view into consumer behavior using historical trends and credit characteristics with the strongest signal
Collections by the Numbers3
64.7 MU.S. consumers with one or
more current collection tradeline2
39.53 MYTD Q1 2016
SHARE
