Fraudscreen's webcast on recoveries looking at recovering more from long-standing debts. 15 minute webcast. Aimed at collections & recoveries practitioners. Pitched at an expert level.

1. WEBCAST
The Life-cycle of a Debtor:
Recoveries: Recovering more from long-standing debts

2. © 2009. Copyright Fraudscreen Ltd.
The three stages of debt...
Webcast: recoveries 2

3. © 2009. Copyright Fraudscreen Ltd.
The three stages of debt...
Paper one:
Pre-delinquency
Webcast: recoveries 2

4. © 2009. Copyright Fraudscreen Ltd.
The three stages of debt...
Paper one: Paper two:
Pre-delinquency Collections
Webcast: recoveries 2

5. © 2009. Copyright Fraudscreen Ltd.
The three stages of debt...
Paper one: Paper two: Paper three:
Pre-delinquency Collections Recoveries
Webcast: recoveries 2

6. © 2009. Copyright Fraudscreen Ltd.
Introducing the speakers
Webcast: recoveries 3

7. © 2009. Copyright Fraudscreen Ltd.
Introducing the speakers
John Sharman
Sales & Marketing
Director, Fraudscreen
Webcast: recoveries 3

8. © 2009. Copyright Fraudscreen Ltd.
Introducing the speakers
John Sharman Peter Taylor
Sales & Marketing Credit & Collections
Director, Fraudscreen Director, Fraudscreen
Webcast: recoveries 3

9. © 2009. Copyright Fraudscreen Ltd.
Introducing the speakers
John Sharman Peter Taylor Helen McNab
Sales & Marketing Credit & Collections Director
Director, Fraudscreen Director, Fraudscreen ScorePlus
Webcast: recoveries 3

10. © 2009. Copyright Fraudscreen Ltd.
Agenda
FRAMEWORK PRE-DELINQUENCY COLLECTIONS RECOVERIES
Objectives Helen
Data & Analytics Helen
Strategy Design Helen
Operational
Peter
Design
Strategy Delivery
Strategy
Peter
Evaluation
Budget Definition Peter
Webcast: recoveries 4

11. © 2009. Copyright Fraudscreen Ltd.
Agenda
FRAMEWORK PRE-DELINQUENCY COLLECTIONS RECOVERIES
Objectives Helen
Data & Analytics Helen
Strategy Design Helen
Operational
Peter
Design
Strategy Delivery
Strategy
Peter
Evaluation
Budget Definition Peter
Webcast: recoveries 4

12. © 2009. Copyright Fraudscreen Ltd.
Programme framework
See: Part One, p.6 Webcast: recoveries 5

13. © 2009. Copyright Fraudscreen Ltd.
Programme framework
FRAMEWORK
Objectives
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part One, p.6 Webcast: recoveries 5

14. © 2009. Copyright Fraudscreen Ltd.
Programme framework
FRAMEWORK
Objectives
Objectives
Data & Analytics
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part One, p.6 Webcast: recoveries 6

15. © 2009. Copyright Fraudscreen Ltd.
Programme framework
FRAMEWORK
Objectives
Objectives
Data & Analytics
Data & Analytics
Strategy Design
Design
Operational Design
Strategy Delivery
Delivery
Strategy Evaluation
Budget Definition
See: Part One, p.6 Webcast: recoveries 7

16. © 2009. Copyright Fraudscreen Ltd.
Programme framework
FRAMEWORK
Objectives
Objectives
Data & Analytics
Data & Analytics
Strategy Design
Evaluation Design
Operational Design
Strategy Delivery
Delivery
Strategy Evaluation
Budget Definition
See: Part One, p.6 Webcast: recoveries 8

17. © 2009. Copyright Fraudscreen Ltd.
Programme framework
FRAMEWORK
Objectives
Objectives
Data & Analytics
Data & Analytics
Strategy Design
Evaluation Design
Operational Design
Strategy Delivery
Delivery
Strategy Evaluation
Budget Definition
Budget
See: Part One, p.6 Webcast: recoveries 9

18. © 2009. Copyright Fraudscreen Ltd.
Agenda
FRAMEWORK PRE-DELINQUENCY COLLECTIONS RECOVERIES
Objectives Helen
Data & Analytics
Strategy Design
Operational
Design
Strategy Delivery
Strategy
Evaluation
Budget Definition Peter
Webcast: recoveries 10

19. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
Tell me more about budget definition
FRAMEWORK
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
Webcast: recoveries 11

20. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
Tell me more about budget definition
FRAMEWORK
Objectives
Where does customer retention
come into play in relation to
Data & Analytics
recoveries budgeting?
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
Webcast: recoveries 11

21. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
At this stage, it is all about the money
FRAMEWORK
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Three, p.11 Webcast: recoveries 12

22. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
At this stage, it is all about the money
FRAMEWORK
• Key issues: letting the relationship go
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Three, p.11 Webcast: recoveries 12

23. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
At this stage, it is all about the money
FRAMEWORK
• Key issues: letting the relationship go
note the options: DCA, legal, debt sale
Objectives
develop a routing strategy
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Three, p.11 Webcast: recoveries 12

24. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
At this stage, it is all about the money
FRAMEWORK
• Key issues: letting the relationship go
note the options: DCA, legal, debt sale
Objectives
develop a routing strategy
Into Recoveries
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Three, p.11 Webcast: recoveries 12

25. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
At this stage, it is all about the money
FRAMEWORK
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Three, p.8
Webcast: recoveries 13

26. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
At this stage, it is all about the money
FRAMEWORK
• Key issues: understanding the costs involved
Objectives
focus on costs and revenues
calculating break-even points
Data & Analytics
understanding the different break-even points for different
portfolios and and channels
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Three, p.8
Webcast: recoveries 13

27. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
At this stage, it is all about the money
FRAMEWORK
• Key issues: understanding the costs involved
Objectives
focus on costs and revenues
calculating break-even points
Data & Analytics
understanding the different break-even points for different
portfolios and and channels
Strategy Design
Operational Design % Recovery rate Average Total % Break-even
from 20% of cases account value £ recovered amount £
Strategy Delivery
60% £500 12% £60
Strategy Evaluation 60% £400 12% £48
50% £500 10% £50
Budget Definition
etc
See: Part Three, p.8
Webcast: recoveries 13

28. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
At this stage, it is all about the money
FRAMEWORK
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, p.16 Webcast: recoveries 14

29. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
At this stage, it is all about the money
FRAMEWORK
Objectives
• Key issues: monitoring the effectiveness of your spend
monitoring against target
Data & Analytics compare agencies against each other
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
See: Part Two, p.16 Webcast: recoveries 14

30. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
At this stage, it is all about the money
FRAMEWORK
Objectives
• Key issues: monitoring the effectiveness of your spend
monitoring against target
Data & Analytics compare agencies against each other
Strategy Design 12%
% debt recovered
Operational Design
DCA 1
Strategy Delivery
DCA 2
Strategy Evaluation
DCA 3
Budget Definition Target
0%
1 2 3 4 5 6
Time elapsed in months
See: Part Two, p.16 Webcast: recoveries 14

31. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
Tell me more about setting objectives
FRAMEWORK
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
Webcast: recoveries 15

32. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
Tell me more about setting objectives
FRAMEWORK
Objectives
When it comes to recoveries,
what options are there in terms of
Data & Analytics
strategic direction?
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
Webcast: recoveries 15

33. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
Making a strategic choice
FRAMEWORK
Objectives
Data & Analytics
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
Webcast: recoveries 16

34. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
Making a strategic choice
FRAMEWORK
• ‘How deep to dig’
Objectives
monies recovered ∞ effort
set effort = break-even?
Data & Analytics
BUT – more than one break-even point
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
Webcast: recoveries 16

35. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
Making a strategic choice
FRAMEWORK
• ‘How deep to dig’
Objectives
monies recovered ∞ effort
set effort = break-even?
Data & Analytics
BUT – more than one break-even point
Strategy Design
Operational Design
Strategy Delivery
Strategy Evaluation
Budget Definition
Webcast: recoveries 16

36. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
Making a strategic choice
FRAMEWORK
• ‘How deep to dig’
Objectives
monies recovered ∞ effort
set effort = break-even?
Data & Analytics
BUT – more than one break-even point
Strategy Design
• Articulate cost vs reward
operational level
Operational Design
capital requirements
Strategy Delivery
• Loss Given Default
Strategy Evaluation inverse of recoveries
monies recovered
regulatory capital
Budget Definition
Webcast: recoveries 16

37. © 2009. Copyright Fraudscreen Ltd.
RECOVERIES
Making a strategic choice
FRAMEWORK
Objectives Objective
Data & Analytics
Strategy Design
Strategy
Operational Design
Strategy Delivery
Capital Operational costs
Strategy Evaluation
Budget Definition Strategy: the articulation of company goals in the context of
company constraints
Webcast: recoveries 17

38. © 2009. Copyright Fraudscreen Ltd.
Find out more…
www.fraudscreen.co.uk/lifecycle-part-three
Paper one:
Paper two:
Pre-delinquency
Paper three: Collections
Recoveries
Webcast: recoveries 18