ID Analytics Collections Optics:
Fine Tunes Collections Efforts with Alternate Data Source
ID Analytics® Collections Optics™ collections scores leverage real-time consumer identity information to enable companies to increase the effectiveness of collections efforts by accurately determining the likelihood of a charge-off in the early stage and predicting the balance percentage of late stage delinquent accounts that will likely be repaid.
In today's economy, tried and true collections strategies are no longer as effective as they once were. Time delinquent and delinquent balance alone do not accurately indicate a consumer’s true ability and willingness to pay. An early stage account with a low-risk credit score is not necessarily going to self cure. And some accounts that appear high risk because they have gone several cycles past due may repay with little effort.
Collections Optics sharpens segmentations for early and late stage collections:
- Early stage: separates those accounts likely to pay from those likely to roll or charge-off, enabling organizations to fine tune collections strategies to quickly realize return on investment while releasing bad accounts sooner.
- Late stage: predicts the percentage of the outstanding balance that will likely be repaid. This helps determine which accounts should be kept in-house and which should be released to third-party collections agencies.
- Reduce Credit Losses with Unique Perspective of Risk
Collections Optics enables lenders to accurately identify accounts most likely to become severely delinquent so aggressive action can be taken early to remediate the situation. - Improve Collections Performance
A leading consumer lender found that modifying the treatment strategy on 30 percent of accounts based on Collections Optics scores improved performance and reduced operations expenses. - Fine-Tune Decisioning Processes to Reduce Operations Expenses
Pinpoint customers who will self cure to save cost and maintain their positive relationship. - Increase Contact Rates
Improved visibility into current identity use improves contact rates.
The key to best defining a collections strategy in today’s market should include real-time data on a consumer’s use of their identity.
Collections Optics leverages the ID Network® - the nation's only real-time, cross industry compilation of identity information. The ID Network incorporates a broad range of identity-centric information across multiple industries and includes 360 billion total aggregated data elements from Fortune 100.
Collections Optics delivers unique predictive performance on its own, or can provide incremental lift to existing collections strategies and tools. The score integrates easily with existing collections processes to sharpen the segmentation of delinquent accounts and drive modifications to treatment decisions. The additional credit risk insight provided by Collections Optics saves organizations money by allocating their resources most effectively to produce maximum results, and accelerates the treatment of high-risk accounts.
The additional credit risk insight provided by Collections Optics saves organizations money by allocating their resources most effectively to produce maximum results, and accelerates the treatment of high-risk accounts.
Email us to learn more about how Collections Optics can improve contact rates, reduce charge-offs, and lower operations expenses by integrating a powerful new perspective on risk.
