Vision 2014: The Ultimate Collections Waterfall

  • 286 views
Uploaded on

You will learn how to build an operational work flow that will ensure best-in-class performance while maintaining compliance. We will review the ideal waterfall and its implementation to ensure that …

You will learn how to build an operational work flow that will ensure best-in-class performance while maintaining compliance. We will review the ideal waterfall and its implementation to ensure that your data spend is optimized.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
  • Some of you in Collections or Skip Tracing may find our presentation from the Experian Vision conference on how to build and manage the Ultimate Data Waterfall in masterQueue interesting...
    Are you sure you want to
    Your message goes here
    Be the first to like this
No Downloads

Views

Total Views
286
On Slideshare
0
From Embeds
0
Number of Embeds
2

Actions

Shares
Downloads
7
Comments
1
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. ©2014 Experian Information Solutions, Inc. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian. Experian Public. Edward Arciniega Bank of America Brian Gourlay Bank of America The ultimate collections waterfall – build your collections waterfall to ensure compliance and guarantee operational excellence John Lewis Intellaegis Rollin Girulat Experian #vision2014
  • 2. 2©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Rollin Girulat  Senior Product Manager, Experian John Lewis  President, Intellaegis Edward Arciniega  Sr. Vice President, Bank of America Brian Gourlay  Sr. Vice President, Bank of America Introductions
  • 3. 3©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.  The waterfall Rollin Girulat  Measuring and tweaking strategies John Lewis  From the field Edward Arciniega / Brian Gourlay  Panel discussion  Questions Agenda
  • 4. 4©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. The waterfall An overview Rollin Girulat Experian
  • 5. 5©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. The ultimate collections waterfall What does it take to win a major NASCAR race?
  • 6. 6©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. The ultimate collections waterfall Strategy and tuning! So what is the parallel between the collections waterfall and NASCAR?
  • 7. 7©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Traditional waterfalls Consideration I Should I work the account?  Bankruptcy  Deceased  Military scrubs  Litigious consumers
  • 8. 8©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Traditional waterfalls Consideration II Skip tracing  Verify current address is good or  Search for new addresses  Look for new phones
  • 9. 9©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Traditional waterfalls Consideration III Scoring or prioritization  Which accounts to work first  Which accounts to work hardest  How much money to spend on an account
  • 10. 10©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. The power of scoring Working Top-20% returns almost 65% of dollars Incidence model performance – blended data Recovered accounts captured by 5% increments
  • 11. 11©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Traditional waterfalls Pass I Compliance Pass II Skip tracing Pass III Scoring 10,000 records 9,500 records 7,000 records 4,200 records
  • 12. 12©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Waterfall alternative A Pass I Scoring Pass II Skip tracing Pass III Compliance 10,000 records 6,000 records 4,500 records 4,275 records
  • 13. 13©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Waterfall alternative B (Optimal) Pass I Compliance Pass II Scoring Pass III Skip tracing
  • 14. 14©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Triggers  New contact information  New signs of ability to pay  New legal hurdles (e.g., bankrupt) The last step – PUSH Photo: Royalbroil, published on Wikimedia Commons, June 2013
  • 15. 15©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.  Underlying data you buy should be of high quality  Ability to flow from step to step in the waterfall ► Should be easy to control ► Should be quick (ideally single submission)  Reporting at each step should be clear  Ability to tune / tweak should be relatively easy  Easy to implement interfaces or layouts Last thoughts on waterfalls Photo: Dave Hogg, Brooklyn, Michigan, published on Wikimedia Commons, June 2008
  • 16. 16©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. John Lewis President, Intellaegis Experian Strategic Partner
  • 17. 17©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.  Auto finance lender – 1982-1988 ► Chrysler Credit and Mitsubishi Acceptance  Auto finance vendor – 1989-2001 ► Built largest repossession company in the U.S. ► Built first skip company in auto finance  Collections software – 2007-Present ► FindJohnDoe.com ► Intellaegis.com ● Financial services ● Law enforcement and government intelligence Introduction John Lewis
  • 18. 18©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Not using a waterfall strategy for your data gathering process is like drinking water through a fire hose!
  • 19. 19©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Web-based data  Paper and PDF’s  Copy and paste  Difficult to track data  Permissible purpose and compliance tracking is a challenge  Duplicate data purchases Batch data  Manual – not real-time  Challenge to make data actionable in software XML data  Real-time  Waterfall changes on the fly  Integrates with software ► Workflow and automation ► Auto track compliance ► Interface telephony Data fusion – Web to batch to XML Keep your eye on data  Big Data strategic ► ROI and RPC measurable
  • 20. 20©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Big Data strategy Source: IBM institute for Business Value 2013 Big Data & Analytics Study
  • 21. 21©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Focus efforts on making calls…
  • 22. 22©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Simplified waterfall The waterfall model is a sequential design process in which progress is seen as flowing steadily downwards (like a waterfall) through the phases of conception, initiation, analysis, design, construction, testing, production / implementation and maintenance. — wikipedia “ ” Scrub  Gather  Scrub  Consume  Gather  Scrub  Consume  Repeat
  • 23. 23©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.  Automated scrub ► Death, SCRA, BK – compliance  Gather data automatically ► TCPA – landline vs. cell – compliance  Predictive analytics ► Collectability score to start with most collectible ► Increase RPC  Consume data ► Spend time calling, not looking for data ► Work in a 100% compliant environment  Measure RPC/ROI ► Tweak as needed The ultimate waterfall
  • 24. 24©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Waterfall strategy Using technology and data helps identify the right party to call, and it prevents you from calling the wrong party
  • 25. 25©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Deceased scrub “I’m sorry, my husband passed away last year. I’ve told that to at least five people at your company… Don’t you have a way to know this?!”
  • 26. 26©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. SCRA scrub with automation
  • 27. 27©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Regulatory law scrub How do you program this? Software should prevent users from making calls that violate federal and state regulatory laws
  • 28. 28©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Compliance scrub Automated compliance and overrides All materials are confidential and not to be shared or distributed without written permission by Intellaegis LLC  Compliance rules are hard coded for federal and state regulatory laws  DNC overrides are available as temporary or permanent (opt-in)  Local time zone limits are honored based on area code  Stop calling wrong parties
  • 29. 29©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Last step is most important Measure and tweak
  • 30. 30©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.  It’s critical you measure RPC and ROI in real-time  RPC should apply to all phone numbers, including non-customer telephone number and all customer addresses ► This is how you measure data ROI and RPC  Drive your ROI with these stats Automatically evaluating the waterfall process
  • 31. 31©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Measuring call penetration
  • 32. 32©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Measuring RPC in real-time
  • 33. 33©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Measure your bottom line results
  • 34. 34©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Edward Arciniega Senior Vice President Bank of America Experian Strategic Partner Brian Gourlay Senior Vice President Bank of America
  • 35. 35©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public.  The purpose of the automated skip tracing program is to standardize the use of the tool and ensure maximized utilization of the collector’s time and limit the ability to contact third parties  The program will provide automated running of skip tracing products at certain intervals within the Bucket 1 and Bucket 2 collection cycle  The program focuses on the correct tool to use at the correct time thereby taking the decision making out of the hands of the collector ► The team members are given their time back so as to be able to do the work vs. getting the data  Through these efforts the desired outcome is that the team member improves their overall results, gets more contacts and drives accounts current From the field
  • 36. 36©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Bucket 1  Within Bucket 1 we do a validation of the portfolio to ensure the data we have is accurate and most up to date ► This is a large number however the cost to benefit ratio is high ► We would look to do a verification of telephone numbers, three maximum ► Any conflicting / confirmation of data will be brought in and loaded onto the system of record notes From the field
  • 37. 37©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Bucket 2  The searches become much more directed ► A review of usage shows redundancies where collectors are using multiple products to get the same results, with cost. ► Best direction was to create automated searches at 40 and again at 50 days delinquent ► At 40 days maximize contact data ● Example: Contact Plus ► At 50 days validation of data in preparation for Bucket 3 ● Example: People at work From the field
  • 38. 38©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Cost Manual hits East West TTl Automated Hits 3840 8098 11938 Customer Input 16,708 Cost cost per hit cost per hit Auto Manual Cost 2076 4697 6773 Hits 9,144 1837 0.2 0.57 Cost per hit 0.54 0.58 0.57 54.73% DPD Test Group Accounts Bad Count Bad Rate 20 Automated skip trace Manual skip trace 768 238 258 82 33.59% 34.45% 40 Automated skip trace Manual skip trace 3,461 852 818 195 23.63% 22.89% 50 Automated skip trace Manual skip trace 1,364 330 454 88 33.28% 26.67% Total Automated skip trace Manual skip trace 5,593 1,420 1,530 365 27.36% 25.70%
  • 39. 39©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Open discussion Questions
  • 40. 40©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. For additional information, please contact: Rollin.Girulat@experian.com Hear the latest from Vision 2014 in the Daily Roundup: www.experian.com/vision/blog @ExperianVision | #vision2014 Follow us on Twitter
  • 41. 41©2014 Experian Information Solutions, Inc. All rights reserved. Experian Public. Visit the Experian Expert Bar to learn more about the topics and products covered in this presentation.