Reducing Cost to Collect & Increasing Account Penetration for a Debt Collection Agency
The Client
The client is a nationally licensed professional collection agency based out of Buffalo, Newyork, providing top-tier recovery and project solutions for our clients across the financial industry.
Business Challenges
With rapidly shifting technology, regulations, and demographics, the collections industry faces a wide range of challenges. For instance, collecting customers’ delinquent debts — debts that are at least 60 days past due and remitting them to the original creditor is quite difficult.
The client faced a unique challenge but not uncommon in growing industries such as BFSI. They had multiple partners but were short of qualified staff. They needed a trusting agency that helps them reduce cost to collect, provide low-cost manpower, increase the accounts penetration, and serve from east to west coast while being efficient and trustworthy.
Solutions Delivered
The client partnered with JindalX in early 2010 to improve their real-time collection rate and increase account penetration. Within 4 months of engagement, JindalX became the most profitable supplier for the client. We built a customized highly scalable platform that helped improve engagement rate by over 400% in 150 days. We also helped them save overhead costs, increase their account penetration by 2.5X, reduce the cost to collect, and improve the dollars collected for the original creditor by 1.5X.
Our experts designed a custom strategy to manage the collections process which was as follows:
I) Hourly production report: It helps capture the immediate dollars, postdated dollars, express dollars, promises, directs received, mail, NSFs, headcount, and calls launched.
II) Daily production report:It reconciles results from the previous day’s hourly reports. It lists month to date postings, postdates, and in-house dollars and compares them to adjusted dailies.
III) Weekly time segmentation schedules:These included the matrices like predictive dialer, project management, purge files, follow-ups, and skips (the list of campaigns that loads no phone inventory).
While the primary objective remained to accelerate collections, we also made calls to help educate customers about credit scores. It enabled customers to pay back without further delays and also establish better relationships.
Outcomes
by
30%
25%
Increased Monthly Debt Buyer Netback Rate by
20%
About JindalX
Founded in 1999, JindalX, part of the $30 billion OP Jindal Group, is a global business outsourcing company delivering exceptional customer experience (CX) solutions for businesses worldwide. We embrace the power of automation, follow a data-driven approach and harness human potential to provide our partners with the best CX. JindalX has served over 100 clients, including fortune 500 companies across 8+ industries including Banking, Financial Services and Insurance (BFSI) in over 15 locations globally.
