Next-Gen Collections Contact Strategy

Multiple pandemic waves already tested effectiveness and adaptability of collections machinery of even the most evolved Financial Institutions to react quickly to changing market situations. Further, customer preferences have changed drastically over last few years while regulations on collections operations continue to evolve. There is a big opportunity for Financial Institutions to adopt a ‘Next-gen collections contact strategy’ that will prepare them better for the future.

This paper explains the 5 key elements of the Next-gen Collections contact strategy leveraging power of analytics, digital and technology to create an efficient and effective Collections engine that controls portfolio quality, reduces collections costs, strengthens customer relationships and brand reputation while ensuring higher regulatory compliance. Overall, our experience suggests that such an approach can deliver a 1.5-2% higher and sustainable Return on Equity impact.