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Bankcard / Retail / Finance
The average consumer credit portfolio, analyzed at policy write-off, shares a common denominator, viz., more
than 50% have not had a confirming point of contact in 30 days. Most, if not all, of these accounts "went skip"
at approximately 30-90 days past due. For most credit grantors over 90% of skip accounts, identified at 90 days
delinquent, will write off. Early-out accounts, without a confirming point of contact in the form of a recent
telephone contact (no >30 days), should be flagged for additional searching and dialing applications.
These accounts have traditionally been dialed for 30 days with internal collection operations, utilizing host
technology with linked dialer supported applications, to work the file. The cost to manage skip inventory can
average $75 per file throughout delinquency. Managing the skip workflow at 90-180 days represents the largest
cost/loss ratio in internal collections due the inherent difficulty in locating missing delinquent customers.
Skip inventory should be processed for liquidation and supported by post-dated check banks (when arrangements are made)
due to the files high probability of writing off. This can be accomplished via outsourcing the skip segment to Tritium,
or through a Fusion deployment at the client's location. Early-out segmentation of skip referral allows for reallocation
of internal collectors on more contactable, remaining account inventories. Internal collection systems were not designed
to address this glaring need to develop contact with the difficult to locate, delinquent customer.
Financial reporting includes traditional overviews of dollars collected, project liquidation, placement and
inventory reconciliation. However the site was created to offer more than just report findings. Contained
within the reporting site is an SQL-based, work flow engine that allows clients to create workflows online and
then have them immediately deployed. Multiple query points for the SQL engine include: account type, status,
attribute tree, confirmed status, promised status, skip process, balance, time zone, and number disposition.
Operational Shift
(31-60 DPD)
The segmentation of skip inventory forces the reallocation of operational personnel. This realignment of resources
results in a controlled, systematic workflow with emphasis on contact, right-party-connect-to-promise ratios,
promise-to-pay-kept percentages and the average payment as a percentage of the balance which is delinquent. Callable
inventory, defined as having a phone number, should also be considered for advanced applications and collections
strategies. Cycle-centric design assures process timeliness providing significant benefits within the specified
calendar month.
Financial Benefits
Early-out skip segmentation offers a plethora of unique enhancements to DMM or forward roll rate performance. This
strategy and deployment concept:
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- protects institutional loss reserve
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- directly lowers policy write-off (3%-12%)
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- greatly reduces overall cost to collect
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- increases Delinquent Matrix Movement (DMM) performance
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- greatly reduces overall cost to collect
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- increases customer awareness which spreads business good will (saved relationships)
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- decreases the cost to collect after write-off (less placements inventory of skip, more unable to pay status i.e., higher recovery agency right party connect).
Business Benefits
Creating a culture that can take responsibility for a rolling receivable dynamic is substantially more difficult than
common recovery efforts. Fusion deployment, used in-house or in conjunction with Tritium outsourcing efforts, helps
credit management:
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- develop an innate understanding of the dynamics of the specific receivable performance
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- take responsibility for large scale process by interacting at the work level
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- build technology tools that teach and continuously enforce best practices through code, training and reporting
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- produce more revenue per collector seat, decreasing the high employee turnover typically associated with account receivable management
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- lower costs associated with traditional, continual recruitment and training for new hires
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