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Compassionate Collections
Compassionate Collections is a comprehensive solution that uses modeling and analytics to help deliver customer segmentation views and treatment strategies that allow collections agents to have meaningful customer conversations and respectfully work toward debt resolution.
Understanding customer needs across every channel
Managing collections is challenging in stable economic times. The COVID-19 pandemic has introduced new and complex issues.
Challenges include:
- Dialing for dollars
- Poor customer experience
- Significant resources requirements
- Insufficient investment in default operations
- Complexity and velocity of regulatory mandates
- Unsustainable cost base and substantial credit loss exposure
- Lack of scale and efficiency
To successfully build an inbound collections campaign, banks will need to show a higher level of understanding of their customers’ needs, across every channel. This means approaching customers in a compassionate way and seeking to understand their personal circumstances. In turn, this will provide banks with greater insight into real-time customer behavior which will enable them to create better, more relevant solutions.
Keen understanding of their customers’ specific situations and behaviors will give banks the confidence to pre-approve treatment strategies where appropriate, thereby building a successful inbound collections process, benefitting both customers and lenders. To help lenders more effectively manage the collections process, EY and Pegasystems recently introduced the Compassionate Collections solution.
The EY Compassionate Collections solution was developed to help clients formulate and implement end-to-end integrated default solutions oriented around an appropriate customer focus. Compassionate Collections transforms operations from a legacy outbound dialing perspective to an inbound digital solution with a focus on helping solve the customer problem.
How EY can help
EY and Pegasystems help companies navigate these new and complex issues by bringing a business-led approach with the Compassionate Collections solution.
It starts with an artificial intelligence (AI) data-driven early warning system that identifies potential delinquency and segments customers currently in default. EY collections models are then loaded into the Pega Customer Decision Hub (CDH) to find the right targets and offers. EY Voice finds the customer situation and supplies it to CDH and/or the case, so offers are personalized to each situation. It then leverages the Pega Collections platform to provide transparency and compliance. Finally, the EY Financial Health Coach navigates the customer through a gamified interface to better financial health and the route to cure. The result is better collection rates with increased efficiency while building a stronger customer relationship.
Broadly, features of the Compassionate Collections solution include:
- Pain points alleviated through migration from a “transactions” to a “customer solutions” approach
- Enhanced interactions through digital experience
- Customer segmentation driven by predictive analytics
- Reduction in re-defaults realized through use of decision engine
- Workflow and document automation streamlines collections process
- Regulatory lookback via auditable controls
