Optimum collections management requires good planning
Optimum collections management can be achieved with good planning and the incorporation of new technologies to improve recovery rates
GDS Modellica offers effective solutions to help companies increase revenue by automating and streamlining their recovery process
Management is about planning efficiently and effectively, and collections management is all about foreseeing those potential problems that go beyond a temporary lack of solvency and instead trigger damaging structural delays with devastating consequences for both the debtor and the creditor. Currently, there is growing pressure on organisations to recover unpaid debt and address increasing default rates both during and after the COVID-19 crisis. In response to this, GDS Modellica offers the Modellica Collection Suite, a solution based on segmentation, communication and decisions strategies that uses predictive analysis, modelling and ratings to prioritise recovery efforts.
The pandemic is presently keeping the markets on tenterhooks, with disastrous economic consequences, including solvency or liquidity problems for customers, leading to growing default rates and delayed payments. However, unlike during the 2008 financial crisis, there now exist new technologies and agile, competitive approaches. The pandemic should be seen as an opportunity and the ideal moment to throw out traditional methods. In particular, applying new technologies to collections management can help to increase efficiency and optimisation and reduce costs.
The Modellica Collection Suite provides precise customer segmentation to strategically guide interventions in order to increase recoveries, identify collection actions, automate decisions and increase customer loyalty through higher-quality interactions. It is a highly customisable solution that can cater for a wide range of collection requirements at each stage of the credit cycle and, by deciphering and analysing data, can help to companies automate and streamline their collections processes and thus increase revenue.
Advanced analytics and machine learning allow banks to learn more about their customers and identify their level of risk. Such technologies can provide a complex yet precise picture, making it possible to classify them in microsegments and then devise and provide specific interventions according to their needs. GDS Modellica can provide a complete customer profile, precisely identify the most valuable customers or those with high potential and develop powerful segmentation campaigns, without losing sight of the principles of careful risk management. The Modellica Originations Engine (MOE) makes it possible for users to adapt to different scenarios and processes, implement different credit criteria and track credit histories, all with total flexibility and ease of use.
These improvements affect the entire collections management process, from prevention and insolvency management to the settling of internal and external accounts. Good segmentation makes it easier to define effective recovery strategies and processes, prevent problems and manage insolvency. By executing credit line management processes, GDS Modellica makes it possible for banks to increase profit by growing the acquisition power of their best customers and limiting exposure for those customers with greater risk. On demand, the bank can increase lines in real-time, increase revenue and improve customer satisfaction by minimising the manual transactions at the point of sale.
Having the correct strategies and analysis is key for moving a profitable direction whilst navigating a changing business environment. These days, everyone can research and buy financial products and services more easily than ever before. As a result, managing these processes through data analysis and automated decision-making will be key for increasing customer lifetime value – good strategy and planning is the best guarantee of success.
On the 16th and 17th of November, Madrid hosted the 14th National Credit Congress, organised by CMS Group and attended by more than 1,000 people to discuss the latest challenges and innovations in the industry.