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Dave LaRoche
Bridgeforce
Dave is the Default Management and Auto Finance practice leader for
Bridgeforce. He has held senior executive positions focused on managing
collections operations, risk management strategies, technology platforms
including telephony and web buildouts, loss forecasting, and MIS reporting
for a wide range of consumer loan products including auto, credit cards,
and consumer finance. Prior to Bridgeforce, David worked with MBNA,
Wells Fargo, and American Express.
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Objectives
© 2018, Confidential & Proprietary Property of Bridgeforce LLC
1
2
3
4
Understand the Consumer Landscape and Digital Space
Identify Where You Stand and What Others are Doing
Demonstrate How You Can Get Started
Nuance: Ready, Set, Collect (Digitally)
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© 2018, Confidential & Proprietary Property of Bridgeforce LLC
Expectations Increase with Changing Consumer Climate
Face ID
SPEED CONVENIENCE SIMPLICITY
Companies are Striving to Deliver a Clear Value Proposition to their Customers
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© 2018, Confidential & Proprietary Property of Bridgeforce LLC
The Consumer Lifecycle is Online More than Ever
Source: eMarketer 9/14 (2008-2010); eMarketer 4/15 (2011-2013); eMarketer 4/17 (2014-20176). Note: Other connected devices include OTT, and
game consoles. Mobile includes smartphone and tablet. Usage includes both home and work. Ages 18+; time spent with each medium includes
all time spent with that medium, regardless of multitasking.
Mobile
Desktop/Laptop
Other
Connected
Devices
Ho
urs
pe
r D
ay
Time Spent with Digital Media per Adult User/Day, US2008 - 2016
16 million
text messages
What Happens in an Internet Minute
@LoriLewis; @OfficiallyChadd
3.5million
search queries
$751,522spent online
342,000apps
downloaded
156 million
emails
sent
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Innovation in the Industry – Three Primary Areas
© 2018, Confidential & Proprietary Property of Bridgeforce LLC
COLLECTIONS EXAMPLE
Data analysts used to
recommend outreach
strategies based on
customer preference or
demonstrated behavior
COLLECTIONS EXAMPLE
RPA and virtual assistants
used to handle inbound
payment requests
COLLECTIONS EXAMPLE
Technology used to
automate control reports
OMNI-CHANNELROBOTICS& AI
REGTECH
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The History of Technology Evolution in Collections
© 2018, Confidential & Proprietary Property of Bridgeforce LLC
Early 1980s:
Mainframe Computing
1
Early 1990s:
Predictive Dialing
2
Mid-1990s:
Online Banking
3
Early 2000s:
Speech Analytics
4
Mid-2000s:
Mobile Banking
5
Late 2000s:
Fully-Configurable
Web Experience
6
Early 2010s:
Unified Real-time Dialogue
7
2020s:
Channel-less?
Deeply integrated customer experience
with a “brain” that brings all channels
together
Collections has a rich history of adopting or being a fast follower of new technologies
Mid- to Late 2010s:
Digital Marketing Integration
8
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Why It’s Time to Get in The Game
© 2018, Confidential & Proprietary Property of Bridgeforce LLC
America's debt is surging, and riskiest borrowers are struggling to pay it back.
Business Insider, November 2017
Cumulative Loan Originations by Key US Digital Lenders ($B)
Includes cumulative loan originations since inception for 13 digital lenders tracked by S&P Global Market Intelligence
Based on company-provided information, rating agency reports and S&P Global Market Intelligence estimates. For
details, see methodology section at the end of the report.
SME = Small and Medium enterprise © 2017. S&P Global Market Intelligence. All rights reserved.
$2.64 Tn
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
3,800
3,600
3,400
3,200
3,000
2,800
2,600
2,400
2,200
Total Consumer Credit
+45%
Billions $Q4 2017
$3.84 Tn
Source: Fed Board of Governors, St. Louis Fed WOLFSTREET.com
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How to Get Started: Identify Where You Are Today
• Omni-channel contact capability
• Integrated web presence
• Robust analytics driving strategy
• Core learning systems leveraging AI
• Mobile app with push notifications and
self-service capabilities
LEADERS
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How to Get Started: Identify Where You Are Today
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• SORs with standard routing and queuing
• Basic VRU with prompts
• Some email and text capability
• Reliance on dialers, letters and roll rates
• Limited or no web presence
MAJORITY
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How to Get Started: Identify Where You Are Today
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• Innovative analytics & segmentation (data, scoring and journeys).
• Integrated customer journey creating a superior value proposition.
• Drive an experience that separates you from others.
HOW LEADERS ARE MOVING FORWARD
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TECH SUPPORT
Make your new goal to support customer’s
digital enablement
METRICS TO EMPOWER DIGITAL ADOPTION
• Enrollment rates
• Online payment activity
• Last interaction
• Contact method used
• Changes in performance management
plans
Leverage existing phone based
interactions to drive toward ultimate goal:
Digital self service
based on customer preference
and value proposition
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Even for Leaders, Don’t Forget the Role of a Call Center
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Building Momentum: Two Approaches
TRADITIONAL APPROACH
“JUST DO IT” APPROACH
If it is not a strategic priority
then there are two approaches
Build your internal business case, obtain funding,
and prioritization. Looking at 18-24 months
before you make some progress.
Just get started. Getting online and/or in the
mobile app is critical. Identify what you have
and expand on it, show value and impact
and use that to make your case to fund a
larger investment.
© 2018, Confidential & Proprietary Property of Bridgeforce LLC
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Show why technology is needed to achieve organizational goals:
▪ Declining contact rates over time
▪ Declining customer satisfaction rates
▪ Collections complaint drivers/trends:
– focus on complaints from too many calls or inconvenience (time / channel)
Traditional: Getting Internal Partners Engaged
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If internal barriers persist, create or buy a phone/written customer survey.
▪ Ask customers how they prefer to interact and give options:
– Phone, letters, mobile app, text,
email, online, chat as options
– Aggregate phone/letters against all
others to show what customers want
▪ Challenge partners to provide alternatives if there are objections in the face of hard data
Traditional: Getting Internal Partners Engaged
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Show expected benefits of added channels with concrete savings:
▪ ~25% of Online usage happens after 9PM = an increase in Customer Satisfaction
▪ Full Omni Channel outreach can reduce calls by 25% = Reduction in complaints
▪ Online promises keep at a much higher rate = Loss reduction
Be BOLD, predict your winsMeasure results and share regularly across the
business as well as with leadership to build
momentum and grass roots support
Traditional: Getting Internal Partners Engaged
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© 2018, Confidential & Proprietary Property of Bridgeforce LLC
OPTION #1
Leverage existing footprint for basic collections functionality 1. Payment Reminders and Education
2. Treatment Offers and Enrollment
3. Setting Contact Information / Preferences / Consent
OPTION #2
If you can’t obtain funding approval and/or IT
resources, use an existing vendor to build URL or
mobile app functionality
JUST DO IT
If you are operating in a dialer and letter
environment, start developing an online
and/or mobile presence for collections.
Get Started with What You Have or Can Access Quickly
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Brian Moore, senior principal, industry solutions of Nuance’s Enterprise division, brings more than 30 years of
experience in financial services, mortgage and collections operations and technology to the company. He
is also our resident compliance expert, advising companies on the TCPA, FDCPA, TSR and other regulations
impacting customer engagement.
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Omni-Channel Engagement Platform
Professional & Hosting Services
Digital Voice Outbound Security
Customer Acquisition Customer Care
OMNI-CHANNEL ENGAGEMENT PLATFORM
Data Security Business Intelligence Tooling APIs & SDKs
AI for Prediction AI for Conversation AI for Analytics
• Intent prediction
• Targeting & Routing
• Fraud Management
• Intent Discovery
• Knowledge
• Identification & Verification
• Speech recognition
• Dialog
• Transcription
Learning Loop
Web Mobile Phone
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Getting started
• Pick a project appropriate to your digital maturity
▪ If Voice only today – add text messaging & email
▪Already using text & email? Add live chat
▪ Been there, done that? Add a virtual collector
•Measure twice, cut once
▪ Pick an experienced partner
▪Design considerations
▪ Plan to refine & optimize
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What can you expect?Adding one-way text messaging to a voice-only strategy
• Increase self-service cures 3-7%
• Reduce operational costs• Save 10 – 15 FTE per 100K
accounts
• Building block for automated conversations
Customer Action Average
Web Visit 6.2%
Web Pay 1.8%
IVR Call 7.0%
IVR Pay 3.4%
Overall Response 13.2%
Overall Pay 5.1%
Response to early stage collections texts
4-7%
1-3%
3-7%
% of Delivered Texts
Range
6-8%
2-4%
10-15%
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Preparing for automated conversations
1. Establish KPIs and measure baseline performance
2. Leverage existing solutions, including any SMS messaging and Natural Language applications
3. Review regulatory and legal requirements (TCPA, FDCPA…)
4. If authentication is necessary, how will it be accomplished?
5. Plan to handle payments, promises, hardships & refusals
6. Consider the response to profane or threatening language
7. Provide for escalation to human assistance
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Major Retail Credit Card Servicer
Before
– Dialer makes outbound calls
– 187 Outbound FTE
– Account/Collector 1500:1
– 35% right party per agent connected call
Digital outreach improves collections, saves $2.8 million per year
After
– Sends digital messages via voice, SMS & email
– 117 Inbound FTE (<37%)
– Account/Collector 2500:1 (>67%)
– 90% right party per agent connected call
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David Laroche, Default Management
and Auto Finance Practice Leader
+1 302.465.3247
CONTACTInformation
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