Collections

In crisis situations, and especially in the current context, recovery areas are particularly relevant, given their highly countercyclical nature. In particular, in a scenario of low margins and higher expected volumes, the role of Collections takes on special relevance in order to manage the balance between:

  • Minimizing the level of non-performing assets, acting quickly to differentiate temporary from structural credit difficulties, as well as identifying debtors with a willingness to cooperate and quickly implementing relevant actions.
  • Taking care of the relationship with customers, making sure the collections, risk monitoring and business areas work in tandem so that good customers feel supported at times of difficulty.
  • Adequately managing reputational and conduct risk, giving consideration to the impact that any action taken would have on the clients.


Collections

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At Management Solutions we have experience in the Collections field within different types of organizations. Our approach, aligned with market standards, begins with the formulation of a strategy at the highest organizational level for its subsequent deployment based on five pillars:

  • Business model and organization, including the review and definition of the transformation plan for the collections role based on best market practices and taking account of regulatory requirements.
     
  • Operational model, with a dual approach:
    • The enhancement of digital channels as an additional lever for collections and the review of the collection solutions (restructurings, assets in lieu of payment, etc.).
    • The industrialization and automation of processes and adaptation of current processes to the new needs.
  • Recovery intelligence, which covers:
    • The definition of advanced segmentation and the use of analytical techniques to determine the optimal strategy at the segment level.
    • The use of analytics to provide solutions for proactive management of debtors, through pre-approved products.
    • The development of anticipatory models and alert systems (Early Warning Indicators).
  • Information and reporting, which covers 3 areas:
    • The development of informational models and dashboards.
    • The situation diagnosis and definition of plans to remedy the quality of data as a result of the new analytical and reporting needs of organizations.
    • The creation of performance statements for the collections business.
  • Recovery management systems
    • Support in evolving current tools for the implementation of solutions for digital channels, strategy engines and execution workflow.
    • Integration of collection solutions into the business architecture.