This document discusses how collections software can help debt collectors assess risk and make the right offers at the right time. It notes that modern debt collection is complex due to limited credit capacity, stronger regulations, and rising numbers of non-performing loans. Collections software provides insights that allow collectors to anticipate risk levels, implement data-driven strategies, and make sound business decisions. It emphasizes that risk scoring helps businesses improve results by identifying risks early. Technology enables more robust risk assessment through real-time analytics, early warning models, and ability to score accounts by collection phase. Timing is also critical, as different collection stages have different needs - software helps segment portfolios and assess accounts to determine the right offer.

1. Manos Margaritis
Deputy CEO
Tech’s Role in
Debt Collections
Assess Risk and
Make the Right Offer
at the Right Time

2. State of Collections:
A Call for Portfolio Insights
Modern C&R is complex. Limited credit capacity, stronger
regulations and a rise in worldwide NPLs have today’s collectors
craving the following:
• The ability to anticipate faster which loans will be low-risk or
high-risk to better manage available credit and ensure overall
portfolio health.
• A need for both quantitative and qualitative data-driven
strategies that are dynamic enough to satisfy regulators.
• Collective insights that give your collectors and decision-
makers the data they need to make sound business decisions.

3. State of Collections:
Need for Specialized Collections Software
What collectors need to bridge knowledge gaps,
appropriately assess risk and make the right offer at the right
time is a robust C&R solution.
The following slides show how collections software can help
provide your teams with the data they need to collect more
and increase revenue.

4. Tech’s Role in
Risk Assessment

5. Why is risk scoring important for
successful collections?
Scoring helps businesses:
• Accurately assess portfolios at any credit
cycle stage, improving business results,
identifying warning signals before they become
liabilities, and satisfying regulations.
• Improve risk assessment to prevent
unnecessary delinquencies or portfolio danger
by allowing your organization to implement
proactive strategies quickly.

6. How can technology make risk
scoring more robust?
With the increased complexity of portfolios,
organizations need solutions that are flexible,
responsive and comprehensive.
Collections software offers the rapid response and
extensive insight needed to truly keep your finger
on the pulse of portfolio risk.

7. Features you need for improved risk
assessment:
1. Account analytics available in real-time from
anywhere.
2. Early warning system models that identify pre-
delinquency triggers and actions to take.
3. Ability to score and segment portfolios that
are actually in delinquency, allowing the right
offer at the right time, depending on if they’re in a
soft or hard collection phase.

8. Tech’s Role in
Making the Right Offer
at the Right Time

9. Why is timing so critical?
Different borrower stages have vastly different
collections needs.
• In earlier stages (soft and pre-litigation), the
focus is on customer cooperation. You place
a high priority on preserving the customer
relationship and minimizing the number of cases
that move to later recovery stages.
• In later stages (litigation and recovery), the
focus shifts from protecting the customer
relationship to protecting assets and
minimizing losses.

10. Why is it important to recognize
which stage a borrower is in?
When lenders have insight into a customer’s stage
of delinquency, they can make the right offer at the
right time for the following benefits:
• Improved collections performance.
• Increased likelihood of success.
• Higher self-cure rates.
• Ability to apply progressive pressure as
borrowers move through each stage.

11. How can technology help you deliver
targeted collections solutions?
To determine which offer is right for which account,
you first need technology that can help you segment
and correctly assess the portfolios on your books.

12. Features to explore to make the right
offer:
1. Portfolio segmentation that prioritizes accounts
based on risk, phase and likelihood of repayment.
2. Account performance insights that make
statistical modeling, algorithmic reasoning, strategy
visualization schemes, open data architecture and
early warning detection possible.
3. Specialized collections software that provides
credit risk monitoring, risk scoring, analytics and
customer data at a glance.

13. How could your organization
leverage technology for better
relationships with customers?

14. Remember:
• Needs vary greatly based on each portfolio’s
unique stage of delinquency. To determine
which offer is right for which account, you first
need technology that can help you segment
and correctly assess the portfolios on your
books.
• With the increased complexity of portfolios,
organizations need solutions that are flexible,
responsive and comprehensive. In short, they
need collections software.

15. Want more expert advice to help you default less and
recover more?
The full Collections and Recovery Best Practices
Manual has tips and strategies to help your company
generate more revenue from each phase of C&R
operations.