How RNDpoint’s Team Remastered Debt Collection Management Software in a Retail Bank

Soft and hard collection are the most critical stages of debt collection activity. They are necessary to motivate debtors to comply with their financial obligations before the need to initiate enforcement proceedings. As a rule, soft collection ensures more effective delinquent debt return than hard collection and other legal stages combined. 

Our client – further referred to as the Bank – specializes in retail lending. They tasked us with ensuring effective debt management by overhauling their soft collection process.

About our client

The Bank is a significant player in the commercial retail banking sector in Central Europe. Its main operational field includes retail lending, credit card issuance, and deposits. The Bank cooperates with many retail chains, has about 150 branches, and is represented in over 100,000 points of sales.

Project background

It is worth mentioning that the Bank has already had debt collection management software implemented. However, when the Bank’s management got in contact with our team, the necessity to upgrade was vital. The existing debt collection management software has become a bottleneck both in accuracy and performance. 

The Bank already had FICO’s software solution onboard, and its efficiency satisfied the Bank’s requirements. That’s why it was decided to leave FICO’s product as a basis for the new debt-collection automation technology. As RNDpoint is a partner of FICO (since 2014), the vendor recommended our team and gave excellent references.

Challenge

After a series of meetings with the Bank’s representatives, RNDpoint’s specialists discovered other flaws in the existing debt management system in the Bank:

• outdated, unsupported technological platform Capstone Decision Manager;
• out-of-date and unstable front-end technology CFE;
• irreparable limitations of traffic capacity in the existing debt management platform;
• offline processing of information from Data Warehouse (DWH);
• a number of manual business processes in the collection department.

Technologies for communication with debtors

Soft collection requires specific technologies and methods of communication with clients. To manage omnichannel touches, it is necessary to effectively exploit techniques and technologies, such as:

• phone calls
• robo-calls
• personal communication with debtors
• text messages
• e-mails
• bots

Automation of communication

Fully appreciating the importance of these communication channels, RNDpoint’s team offered an automated software solution for flexible and effective communication. RNDpoint’s solution allows automating of the following processes:

• registration of incoming and outgoing documentation;
• storage of interaction history with debtors;
• recording of incoming and outgoing phone calls.

Vulnerable information security

The Bank had strict requirements for the software solution because it plays a key role in Bank’s workflow and deals with critical information, such as: 

• recording changes in the system;
• storing records of phone calls;
• backing up vulnerable commercial data;
• registering of incoming and outgoing correspondence.

The requirements of the Bank were coupled with a strict deadline. This formed part of the conditions that underlined the project for the RNDpoint team.

Solution. Debt management system implementation

In the negotiations, the Bank and RNDpoint agreed that it is necessary to migrate the functions from the existing system into the new one, making it more agile, flexible, and productive. 

After 6 months of hard and thorough work from both sides, the final product came to life. Its functionality included:

• implementation of new processes and tools for soft collection;
• development and execution of a mobile toolkit for field employees;
• design and deployment of new necessary strategies for FICO® Blaze Advisor;
• building and implementation of debtor informing system via Interactive Voice Response (IVR) system;
• deployment of appreciations for:
  1. planning meetings with clients at the Bank’s offices;
  2. working with document scans archives;
  3. checking and standardization of input data.

Screenshots of the final product

Result

As a result of the fruitful cooperation, from the very launch of the new system, a significant improvement of debt collection effectiveness was recorded by the Bank. 

1. The Bank started to use the system immediately due to its stability and reliability.
2. After 6 months of the new system exploitation, an automated debt management platform allowed the processing of toxic assets 32% faster.
3. Due to the successful improvement of the soft collection stage, the Bank decided to use RNDpoint’s services for the renovation of the hard collection stage. 

With every implemented iteration, RNDpoint’s cooperation with the Bank was taken to the next level of trust. The Bank has become one of our largest clients.