Contenu connexe Similaire à Collections; knowing what intervention really works when people don’t pay (20) Collections; knowing what intervention really works when people don’t pay1. WEBCAST
The Life-cycle of a Debtor:
Collections: Knowing what intervention really works
when people don’t pay
2. © 2009. Copyright Fraudscreen Ltd.
The three stages of debt...
Webcast: collections 2
3. © 2009. Copyright Fraudscreen Ltd.
The three stages of debt...
Paper one:
Pre-delinquency
Webcast: collections 2
4. © 2009. Copyright Fraudscreen Ltd.
The three stages of debt...
Paper one: Paper two:
Pre-delinquency Collections
Webcast: collections 2
5. © 2009. Copyright Fraudscreen Ltd.
The three stages of debt...
Paper one: Paper two: Paper three:
Pre-delinquency Collections Recoveries
Webcast: collections 2
6. © 2009. Copyright Fraudscreen Ltd.
Introducing the speakers
Webcast: collections 3
7. © 2009. Copyright Fraudscreen Ltd.
Introducing the speakers
John Sharman
Sales & Marketing
Director, Fraudscreen
Webcast: collections 3
8. © 2009. Copyright Fraudscreen Ltd.
Introducing the speakers
John Sharman Peter Taylor
Sales & Marketing Credit & Collections
Director, Fraudscreen Director, Fraudscreen
Webcast: collections 3
9. © 2009. Copyright Fraudscreen Ltd.
Introducing the speakers
John Sharman Peter Taylor Helen McNab
Sales & Marketing Credit & Collections Director
Director, Fraudscreen Director, Fraudscreen ScorePlus
Webcast: collections 3
10. © 2009. Copyright Fraudscreen Ltd.
Agenda
FRAMEWORK PRE-DELINQUENCY COLLECTIONS RECOVERIES
Objectives Helen
Data & Analytics Helen
Strategy Design Helen
Operational
Peter
Design
Strategy Delivery
Strategy
Peter
Evaluation
Budget Definition Peter
Webcast: collections 4
11. © 2009. Copyright Fraudscreen Ltd.
Agenda
FRAMEWORK PRE-DELINQUENCY COLLECTIONS RECOVERIES
Objectives Helen
Data & Analytics Helen
Strategy Design Helen
Operational
Peter
Design
Strategy Delivery
Strategy
Peter
Evaluation
Budget Definition Peter
Webcast: collections 4
12. © 2009. Copyright Fraudscreen Ltd.
Programme framework
See: Part One, p.6 Webcast: collections 5
13. © 2009. Copyright Fraudscreen Ltd.
Programme framework
FRAMEWORK
Objectives
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part One, p.6 Webcast: collections 5
14. © 2009. Copyright Fraudscreen Ltd.
Programme framework
FRAMEWORK
Objectives
Objectives
Data & Analytics
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part One, p.6 Webcast: collections 6
15. © 2009. Copyright Fraudscreen Ltd.
Programme framework
FRAMEWORK
Objectives
Objectives
Data & Analytics
Data & Analytics
Strategy Design
Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part One, p.6 Webcast: collections 7
16. © 2009. Copyright Fraudscreen Ltd.
Programme framework
FRAMEWORK
Objectives
Objectives
Data & Analytics
Data & Analytics
Strategy Design
Design
Operational Design
Strategy Delivery
Delivery
Strategy Evaluation
Budget Definition
See: Part One, p.6 Webcast: collections 8
17. © 2009. Copyright Fraudscreen Ltd.
Programme framework
FRAMEWORK
Objectives
Objectives
Data & Analytics
Data & Analytics
Strategy Design
Evaluation Design
Operational Design
Strategy Delivery
Delivery
Strategy Evaluation
Budget Definition
See: Part One, p.6 Webcast: collections 9
18. © 2009. Copyright Fraudscreen Ltd.
Programme framework
FRAMEWORK
Objectives
Objectives
Data & Analytics
Data & Analytics
Strategy Design
Evaluation Design
Operational Design
Strategy Delivery
Delivery
Strategy Evaluation
Budget Definition
Budget
See: Part One, p.6 Webcast: collections 10
19. © 2009. Copyright Fraudscreen Ltd.
Agenda
FRAMEWORK PRE-DELINQUENCY COLLECTIONS RECOVERIES
Objectives
Data & Analytics
Strategy Design Helen
Operational
Design
Strategy Delivery
Strategy
Peter
Evaluation
Budget Definition
Webcast: collections 11
20. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Tell me more about strategy design
FRAMEWORK
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
Webcast: collections 12
21. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Tell me more about strategy design
FRAMEWORK
Objectives
You talk about a score being a
sufficient statistic, what does that
Data & Analytics
mean in practice?
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
Webcast: collections 12
22. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
Webcast: collections 13
23. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• Key issue: complexity of strategies
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
Webcast: collections 13
24. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• Key issue: complexity of strategies
Objectives
small volume action groups (nodes)
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
Webcast: collections 13
25. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• Key issue: complexity of strategies
Objectives
small volume action groups (nodes)
hard to justify
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
Webcast: collections 13
26. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• Key issue: complexity of strategies
Objectives
small volume action groups (nodes)
hard to justify
Data & Analytics
hard to monitor and therefore refine strategies
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
Webcast: collections 13
27. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
Webcast: collections 14
28. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
Webcast: collections 14
29. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, pp.7-10 Webcast: collections
30. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• What is a score?
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, pp.7-10 Webcast: collections
31. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• What is a score?
Objectives
prediction of behaviour e.g.
Data & Analytics
- risk: probability of delinquency
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, pp.7-10 Webcast: collections
32. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• What is a score?
Objectives
prediction of behaviour e.g.
Data & Analytics
- risk: probability of delinquency
- retention: probability of closure or inactive
Strategy Design
summary all our knowledge
Operational Design
- based on past experience
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, pp.7-10 Webcast: collections
33. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• What is a score?
Objectives
prediction of behaviour e.g.
Data & Analytics
- risk: probability of delinquency
- retention: probability of closure or inactive
Strategy Design
summary all our knowledge
Operational Design
- based on past experience
- function of input data
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, pp.7-10 Webcast: collections
34. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• What is a score?
Objectives
prediction of behaviour e.g.
Data & Analytics
- risk: probability of delinquency
- retention: probability of closure or inactive
Strategy Design
summary all our knowledge
Operational Design
- based on past experience
- function of input data
Strategy Delivery - statistically balances predictive factors
Strategy Evaluation
Budget Definition
See: Part Two, pp.7-10 Webcast: collections
35. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• What is a score?
Objectives
prediction of behaviour e.g.
Data & Analytics
- risk: probability of delinquency
- retention: probability of closure or inactive
Strategy Design
summary all our knowledge
Operational Design
- based on past experience
- function of input data
Strategy Delivery - statistically balances predictive factors
- nothing else can be added to improve our
Strategy Evaluation understanding
Budget Definition
See: Part Two, pp.7-10 Webcast: collections
36. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• What is a score?
Objectives
prediction of behaviour e.g.
Data & Analytics
- risk: probability of delinquency
- retention: probability of closure or inactive
Strategy Design
summary all our knowledge
Operational Design
- based on past experience
- function of input data
Strategy Delivery - statistically balances predictive factors
- nothing else can be added to improve our
Strategy Evaluation understanding
Budget Definition
See: Part Two, pp.7-10 Webcast: collections
37. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• What is a score?
Objectives
prediction of behaviour e.g.
Data & Analytics
- risk: probability of delinquency
- retention: probability of closure or inactive
Strategy Design
summary all our knowledge
Operational Design
- based on past experience
- function of input data
Strategy Delivery - statistically balances predictive factors
- nothing else can be added to improve our
Strategy Evaluation understanding
Budget Definition • BUT – scores do not make decisions
See: Part Two, pp.7-10 Webcast: collections
38. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, p.7 Webcast: collections
39. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• Why is this important?
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, p.7 Webcast: collections
40. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• Why is this important?
Objectives
reduces dimensionality
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, p.7 Webcast: collections
41. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• Why is this important?
Objectives
reduces dimensionality
simplifies decision-making
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, p.7 Webcast: collections
42. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• Why is this important?
Objectives
reduces dimensionality
simplifies decision-making
Data & Analytics
simplicity works
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, p.7 Webcast: collections
43. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• Why is this important?
Objectives
reduces dimensionality
simplifies decision-making
Data & Analytics
simplicity works
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, p.7 Webcast: collections
44. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• Why is this important?
Objectives
reduces dimensionality
simplifies decision-making
Data & Analytics
simplicity works
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, p.7 Webcast: collections
45. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• Why is this important?
Objectives
reduces dimensionality
simplifies decision-making
Data & Analytics
simplicity works
Strategy Design
Operational Design
Scores
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, p.7 Webcast: collections
46. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
The sufficient statistic
FRAMEWORK
• Why is this important?
Objectives
reduces dimensionality
simplifies decision-making
Data & Analytics
simplicity works
Strategy Design
Operational Design
Scores
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, p.7 Webcast: collections
47. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Tell me more about strategy design
FRAMEWORK
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
Webcast: collections 17
48. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Tell me more about strategy design
FRAMEWORK
Objectives
What does a ‘marketing approach’
mean in relation to collections?
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
Webcast: collections 17
49. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Taking a marketing approach
FRAMEWORK
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, pp.6-7 Webcast: collections 18
50. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Taking a marketing approach
FRAMEWORK
• Key issue: understanding customer response
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, pp.6-7 Webcast: collections 18
51. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Taking a marketing approach
FRAMEWORK
• Key issue: understanding customer response
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Lender
actions
Strategy Evaluation
Budget Definition
See: Part Two, pp.6-7 Webcast: collections 18
52. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Taking a marketing approach
FRAMEWORK
• Key issue: understanding customer response
Objectives
Data & Analytics
Customer
Strategy Design response
Operational Design
Strategy Delivery
Lender
actions
Strategy Evaluation
Budget Definition
See: Part Two, pp.6-7 Webcast: collections 18
53. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Taking a marketing approach
FRAMEWORK
• Key issue: understanding customer response
Objectives
Data & Analytics
Customer
Strategy Design response
Operational Design
Strategy Delivery
Lender
Analysis
actions
Strategy Evaluation
Budget Definition
See: Part Two, pp.6-7 Webcast: collections 18
54. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Taking a marketing approach
FRAMEWORK
• Key issue: understanding customer response
Objectives
Data & Analytics
Customer
Strategy Design response
Operational Design
Strategy Delivery
Lender
Analysis
actions
Strategy Evaluation
Budget Definition
Refinement
See: Part Two, pp.6-7 Webcast: collections 18
55. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Taking a marketing approach
FRAMEWORK
• Key issue: understanding customer response
Objectives
Data & Analytics
Customer
Strategy Design response
Operational Design
Strategy Delivery
Lender
Analysis
actions
Strategy Evaluation
Budget Definition
Refinement
See: Part Two, pp.6-7 Webcast: collections 18
56. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Taking a marketing approach
FRAMEWORK
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, p.6-7 Webcast: collections 19
57. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Taking a marketing approach
FRAMEWORK
• Possible solution: think as a marketer
Objectives
identify ‘the dream’
design the campaigns
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, p.6-7 Webcast: collections 19
58. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Taking a marketing approach
FRAMEWORK
• Possible solution: think as a marketer
Objectives
identify ‘the dream’
design the campaigns
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation Prospects
Cohorts
Budget Definition
See: Part Two, p.6-7 Webcast: collections 19
59. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Taking a marketing approach
FRAMEWORK
• Possible solution: think as a marketer
Objectives
identify ‘the dream’
design the campaigns
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation Prospects Contact
Cohorts Campaigns
Budget Definition
See: Part Two, p.6-7 Webcast: collections 19
60. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Taking a marketing approach
FRAMEWORK
• Possible solution: think as a marketer
Objectives
identify ‘the dream’
design the campaigns
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation Prospects Contact Collection outcomes
Cohorts Campaigns Response analysis
Budget Definition
See: Part Two, p.6-7 Webcast: collections 19
61. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Taking a marketing approach
FRAMEWORK
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, p.13 Webcast: collections 20
62. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Taking a marketing approach
FRAMEWORK
• Possible solution: think as a marketer
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, p.13 Webcast: collections 20
63. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Taking a marketing approach
FRAMEWORK
• Possible solution: think as a marketer
Objectives understand cause and effect: measure collection outcome
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, p.13 Webcast: collections 20
64. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Taking a marketing approach
FRAMEWORK
• Possible solution: think as a marketer
Objectives understand cause and effect: measure collection outcome
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Cured
Budget Definition Into recoveries
See: Part Two, p.13 Webcast: collections 20
65. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Taking a marketing approach
FRAMEWORK
• Possible solution: think as a marketer
Objectives understand cause and effect: measure collection outcome
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Cured
Budget Definition Into recoveries
understand financial consequences: contribution & retention
See: Part Two, p.13 Webcast: collections 20
66. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Tell me more about strategy evaluation
FRAMEWORK
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
Webcast: collections 21
67. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Tell me more about strategy evaluation
FRAMEWORK
Objectives
When it comes to evaluating a
collections strategy, what key action
Data & Analytics
could people take immediately?
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
Webcast: collections 21
68. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Having a retention mind-set
FRAMEWORK
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, pp.15-16 Webcast: collections 22
69. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Having a retention mind-set
FRAMEWORK
• What do the incentives in your collections area say about
Objectives your priorities?
group or individual?
Data & Analytics reward immediate payments, or sustained payment?
encourage staff to share approaches that work best, or keep them as
Strategy Design a closely guarded secret?
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, pp.15-16 Webcast: collections 22
70. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Having a retention mind-set
FRAMEWORK
• What do the incentives in your collections area say about
Objectives your priorities?
group or individual?
Data & Analytics reward immediate payments, or sustained payment?
encourage staff to share approaches that work best, or keep them as
Strategy Design a closely guarded secret?
• What is the role of the supervisor in collections?
Operational Design
‣ model worker?
‣ trainer?
Strategy Delivery
‣ evaluator of staff performance?
‣ what % of staff calls does the supervisor monitor?
Strategy Evaluation
Budget Definition
See: Part Two, pp.15-16 Webcast: collections 22
71. © 2009. Copyright Fraudscreen Ltd.
COLLECTIONS
Having a retention mind-set
FRAMEWORK
• What do the incentives in your collections area say about
Objectives your priorities?
group or individual?
Data & Analytics reward immediate payments, or sustained payment?
encourage staff to share approaches that work best, or keep them as
Strategy Design a closely guarded secret?
• What is the role of the supervisor in collections?
Operational Design
‣ model worker?
‣ trainer?
Strategy Delivery
‣ evaluator of staff performance?
‣ what % of staff calls does the supervisor monitor?
Strategy Evaluation
• What do your customers think of the collections process?
‣ do you ask customers who have been in collections what they thought
Budget Definition
of it?
‣ how do you measure retention?
See: Part Two, pp.15-16 Webcast: collections 22
72. © 2009. Copyright Fraudscreen Ltd.
Find out more…
www.fraudscreen.co.uk/lifecycle-part-two
Paper one: Paper three:
Pre-delinquency Recoveries
Paper two:
Collections
Webcast: collections 23