Systematic approach to debt collection

Collection (i.e. debt collection) refers to a system of interrelated tools used to monitor overdue portfolios and recover unpaid debts. A well-structured collection process ensures effective arrears management, thereby increasing working capital, liquidity and company profit as well as reducing reserve requirements.

ABOUT

Prerequisites for establishing/modernizing a Collection system in banks and MFIs

  • Consistently increasing loan portfolio
  • Active lending development with an increasing volume of overdue loans
  • Launch of online lending
  • Need to reduce reserve requirements
  • Desire to collect debts faster
  • Need for more effective and modern debt collection methods
  • Desire to optimize loan expert work schedules for maximum productivity
  • Need to reduce the costs of an established collection system without losing efficiency

FEATURES

Collection system components

Optimized collection processes
Debt recovery training
Development of Soft Collection department structure
Soft Collection procedures development
Pilot launch of new collection structures and procedures

BFC APPROACH

Collection assessment

Analysis and recommendations on the following:

  • Overdue portfolio
  • CRM system
  • Pre-collection strategy
  • Soft collection strategy
  • KPIs
  • Motivational schemes
  • Reporting system
  • Quality assessment and training system for soft collection staff

Soft Collection staff training

Training and coaching on negotiation techniques:

  • Basics of negotiations
  • Structure of negotiations with debtors
  • Voice features during negotiations
  • Principles of psychological manipulation
  • Questioning techniques
  • Listening techniques
  • Handling objections
  • Discussing the consequences of the non-payment of debt
  • Types of negotiators

Development of a new collection system, including the assessment of existing processes

  • Overdue portfolio analysis
  • Collection strategy development
  • Motivational scheme development
  • KPI system development
  • Reporting system development
  • Selection, training and coaching of soft collection staff
  • Quality assessment system implementation
  • Head of Collection Department coaching
  • CRM system development
  • Recommendations for the further development of the soft collection department
  • Performance results analysis (at 1, 2, 3 and 6 months), with recommendations for adjustments

Our clients

Potential gains

54% higher
Collection efficiency

40–60% less
Overdue debts

up to 64% less
Problem portfolio and collection expenses

30–50% faster
Collection processes

Qualitative effect

Minimized reputational risk

Increased customer loyalty

Decreased number of debtors’ claims

Modernized performance monitoring

PRICING

Contact us

As BFC tailors each solution to our client’s needs, we do not offer a fully-packaged product. Instead, we work with our clients to create a unique solution that works for them.

The cost of services is greatly dependent on the specific needs of each situation; however, we do everything in our power to provide our clients with the best possible prices and always provide the highest quality products and services.

Contact person:

Timur Kim
Collection Expert

Get in touch

We encourage you to reach out to us; we will be happy to discuss with you how our collection solutions can best suit your needs. We hope to hear from you soon.

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