Callcredit Blog

Five ways to bring your collections operation into the 21st century blog series 1/5: Data

Collections & Recoveries

shutterstock_134968730_blog1In the first of a series of short blogs, aimed at identifying ways you can bring your collections practice into the 21st century, we take a look at how the right data can be extremely useful for the modern day collections operation.

Did you know that 90 per cent of the world’s data has been collected in the last few years? Big Data is now big business. Traditional credit information has long been established in credit risk decisioning processes, however never before has such a wealth of data been available. Information is now widely collected on your buying and spending habits, where you eat, the places you like to go, the shops you prefer…..the list is endless. SMART devices connected to the internet of things now mean that it is even possible for your kettle to report how many cups of tea you have made in a day!

Now I am not sure how useful that last piece of information will be in a collections and recoveries environment, but one thing is for sure, we have more access to data than ever before and the right kind of data can be extremely useful for the modern day collections operation. It is now possible to build next generation propensity to pay and propensity to contact models that can provide a level of analytical segmentation so sophisticated that certain behaviours can be predicted before they actually happen. Multiple regression models can identify the most predictive variables from a multitude of different data sets, so that scorecards can be built and accounts segmented to optimise performance. By utilising scorecards, effective contact strategies can be designed that maximise efficiencies and reduce operational wastage by contacting the right people at the right time.

This type of approach not only enables smarter decision making but also helps to secure consistently fair customer outcomes through intelligent strategy deployment.

If you would like help bringing your collections practice into the 21st century or have questions on any of what I have discussed please email or feel free to leave a comment below.

We also have our Collections Innovation Forum on the 8 Sept, find out more and register today:

Author: Marc Howson

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