FICO Debt Мanager: you are not alone managing delinquent loans!

From the dawn of debt collection activity, the existing means of automatization of collecting money from debtors was effective enough. It supported simple decision-making scenarios, and they were the same for all types of delinquent loans.

A satisfactory level of debt return was achieved with the work of highly-skilled specialists. But, debt manager services cost companies a fair amount of money. Delinquent loan growth led to an increase in expenditures on such specialists’ work and increased demand for such specialists. This  meant more costs, but more critically, it is impossible to train professionals like that in a short period of time.

Is it possible to arrange debt collection in such a way that with less expenditure a company can maintain and even increase the level of debt return? The answer can be easily found among FICO software solutions.

Contributed to our Blog byVP, Business developmentSergei Artimenia

Debt manager software: new player on debt collection forefront

The focus and the role of debt collection departments have dramatically changed during the last decade. There has been a decline in confrontational strategies in communication when dealing with debtors. Instead of that, banks and collection agencies have to look for a compromise. 

Practice shows that it is more effective to return a loan by means of soft collection rather than drag debtors to court, repossess their property or sell their debts. That is why financial institutions have to keep a balance between oppressive measures and communication with debtors to achieve debt recovery in the short- and mid-time period. 

New technologies like data analytics, cloud computing models and computer behavioral models became a lifeboat for debt collection departments. 

Debt manager software unites analytics, operations, and communication in itself. The proper synchronization of these components gives users the opportunity to substantially increase delinquent debt recovery. And FICO software is the perfect solution for this problem.

Why is FICO Debt Manager is the top debt manager application?

Due to the enormous growth of delinquent debts, the necessity to manage this problem has become even more acute. Tens of software vendors offer their debt manager collection systems. So, why choose FICO?

  1. FICO’s advanced Artificial Intelligence (AI) is developed on a self-learning basis. 
  2. Its software is easily integrated into any infrastructure. 
  3. FICO Debt Manager application, as well as any other, is fully supported throughout its lifecycle. 
  4. FICO is the leading company in the decision management market. 
  5. FICO products are reliable tools that help large enterprises, small and medium businesses (SMBs) and governmental institutions in about 90 countries worldwide to solve a wide variety of tasks.

Watch the video to learn about FICO Debt Manager – a leader among debt collection solutions. 

FICO Debt manager from the company’s YouTube channel

What is in the box or how does FICO Debt manager work?

As mentioned above, FICO Debt Manager helps to increase the collection of delinquent debts. Moreover, its aim is to reduce costs by the introduction of automation, advanced analytics, and machine learning. How? It’s very simple. 

The choice of a scenario. FICO Debt Manager recommends certain scenarios, including complicated ones, and actions that have been developed by skillful experienced specialists. The choice of a scenario depends on the debtor’s credit score calculation. According to the score, the system either automatically notifies a debtor via e-mail, voice or text message, or appoints a bank employee who is going to work on this case. The system even specifies a script a bank specialist can use in the request. 

The choice of a specialist. In addition, FICO Debt Manager takes into consideration the difficulty of a case. The more difficult the cases, the more skillful the specialist is that is chosen by the system. An application can even suggest moving to the next stage of work on debt management or for sale. 

The score calculation. The score is calculated on the basis of debtor segmentation into several groups. Debtors in the same group have similar debt situations, social-demographic characteristics, and behavior. The score is calculated for each segment according to parameters of credit, payment delay, and debtor’s credit history. With the help of Data Mining, debt recovery probability is figured out.

Multiple case resolution. Complicated scenarios are corrected from time to time to apply new behavioral patterns of debtors. Besides, FICO Debt Manager supports different versions of the same scenario through special scenarios selection algorithms. In the end, it gives the opportunity to choose the most effective scenario among the proposed “candidates.” 

FICO Blaze Adviser and FICO Risk Intervention Manager are included in FICO Debt Manager architecture to make the choice of appropriate scenarios even easier.

A bunch of cherries on the cake’s top, or benefits of FICO Debt Manager

The three major benefits that distinguish FICO Debt Manager among other debt collection solutions are:

  • high configurability;
  • flexibility;
  • scalability.

The application is highly configurable. It provides a wide range of options from location and language restrictions to desktop customization. 

Customer accounts contain personal information about a debtor. They can be adjusted to reach maximum effect. 

Due to high configurability and a user-friendly interface, FICO Debt Manager allows for users to learn its functionality fast. 

The flexibility of the application is in its ability to integrate into any infrastructure both newly installed or existing ones. Moreover, FICO Debt Manager can collaborate with other company software and third-party programs. 

There is no need to upgrade or replace FICO Debt Manager with other company software solutions if the data volume is increasing. The system grows as you do thanks to application scalability.

Here are some screenshots that show platform functionality. 

Agent Desktop

Fig. 1. Agent desktop

DM Rule management center

Fig. 2. DM Rule management center

Debt manager sample high level timeline

Fig. 3. Debt manager sample high level timeline

Decision management platform streaming

Fig. 4. Decision management platform streaming

FICO Debt Manager – best among the rest

FICO Debt Manager solution is a powerful analytic tool that has been chosen by many companies and governmental institutions such as Williams & Fudge Inc., UK Ministry of Defence, WorldPay, Synchrony Financial, Phillips & Cohen Associates, etc. 

In 2018, Raiffeisen Bank International chose the solution to reduce collection costs and improve debt return. 

“With FICO providing Debt Manager software as a service, we optimize our costs and free up time for our business and IT teams. FICO’s cloud solution is of the highest quality and considers the necessary security standards,” said Peter Jacenko, Managing Director and Global Head of International Retail Risk Management at Raiffeisen Bank International.

In 2019, Valor Intelligence Processing decided to accept FICO Debt Manager as its debt collection solution. 

“We are in a post-compliance era. We want to use not only the art of data collection, exemplified by our executives’ decades of experience, but also the science to deliver world-class results to the clients that entrust us with their customers,” said Gordon C. Beck III, Valor’s President and Chief Operating Officer. “FICO Debt Manager helps us do that by offering the most flexible, easy to use and efficient platform we’ve ever seen.”

FICO Debt Manager: opinion from an insider

“FICO Debt Manager is a universal platform that realizes its potential at any stage of debt collection,” says RNDpoint’s Senior Software Developer Maxim Sidorov. “Its flexible nature provides full integration into any internal or external service and data source. And the inbuilt FICO Blaze Advisor secures our customers from misleading strategies. Our team considers the solution to be the best in its class, no doubt. That is why the world’s leading banks and collection agencies prefer FICO Debt Manager to any other collection platform.”

Conclusion

Considering the existing conditions of the financial market and governmental restrictions collection activity, businesses have to look for new ways of communication with customers. A balance between financial institution targets and customer satisfaction is now a key principle. With FICO Debt Manager the balance is here, now and visual. It’s time to think of using FICO Debt Manager before you are struck by a wave of delinquent loans and solve the problem before it happens.

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