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Genpact solutions for resilient collections in the current recessionary environment

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A recessionary environment no one was ready for

Deep impact on the global economy is driving a sharp shift in focus towards debt collections

This environment is pivoting banks towards a new reality

• Most banks are under prepared to face the recessionary environment expected to last for a long time.

• This downturn has put the focus back on debt-collections. However, lenders must rapidly adjust all aspects of their strategies and operating models.

• The COVID-19 outbreak has forced banks to confront a much sharper and more sudden downturn, unlike anything they have seen before.

• Navigating government bailouts, preparing for unpredicted spikes and delinquencies, and managing an overwhelmed workforce are few of the key challenges banks have to steer.

• Affected customers require a compassionate response. If banks fail to show the much needed empathy, they risk their reputation.

• Banks must deal with the dual shock of increased volumes in debt collections and reduced number of agents in the call center.

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Collections strategies will materially change in the post COVID-19 world

Collections after the pandemicCollections before Covid-19

• Digital contact was aspirational although most customers prefer digital channels.

• Reactive and limited identification of high-risk account. Contact channels and treatments are adopted without the necessary evaluation.

• Rule book driven collections processes with limited customer-level personalization.

• Dependency on collection agents and focus on physical resources and cost-per-seat.

• Antiquated data models for loss forecasting that do not use alternate data sources or advanced segmentation methods.

• Omni-channel contact to enable 24/7 collections capability will be essential and a key differentiator.

• Lenders will rely on proactive and extensive high-risk account interventions to address a delinquency even before it happens.

• Hyper-personalized strategies will help optimize recoveries.

• Human and machine collaboration will drive better negotiations and empathetic treatment.

• Loss forecasting models will be upgraded to produce segment level forecasts and solutions.

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To come out stronger at the other end of the tunnel, banks will need a three-pronged approach

In light of COVID-19, most policies and frameworks will need to be adjusted in real-time. Banks must create agile business response teams to navigate this crisis.

Respond immediately

Banks should plan for massive shifts in workforce. Social distancing is pushing more “remote work” and creating opportunity to digitize workforce for the long term.

Build an adaptive workforce

Banks must improve collections capabilities strategically. Digital contact, frictionless payments and augmented intelligence are some capabilities banks will have to build.

Ramp-up strategic capabilities

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We can provide immediate solutions and support your near-term transformational strategies

I m m e d i a t e s o l u t i o n s t o g e t c o l l e c t i o n s a n d r e c o v e r y b a c k o n t r a c k i n 0 - 3 0 d a y s

Our agile analytics team can continuously monitor, reset assumptions and evaluate the impact on portfolio health, collections and recovery. The team can also help recalibrate existing collections strategy, in response to volatile environment, to contain delinquency.

We drive agent performance using digital and analytics. We also provide targeted training programs to ensure agents are empathetic to customers in distress.

We offer highly skilled resource pool to support surge in collections volume, and enable remote transition.

Scaling capacity

Rapid response teams

Improving agent performance

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To optimize agent performance using speech analytics and conversational AI.

To minimize outbound calling, and drive self-service with digital contact strategy over multiple channels.

To enable “frictionless” payments across a connected ecosystem and help customers pay through any channel.

To upgrade loss forecasting and customer interaction models with machine learning, alternate datasets and micro segmentation.

To eliminate the mundane, low-value activities and help agents focus on decision-making and negotiations.

T r a n s f o r m y o u r c o l l e c t i o n s a n d r e c o v e r y i n 3 0 - 9 0 d a y s w i t h t h e s e s o l u t i o n s :

Real-time agent assistance

Omni-channel contact optimization

Loss mitigation

Automation

Payments transformation

We can provide immediate solutions and support your near-term transformational strategies

To help reduce unanticipated credit and reputational risks associated with government bailouts.

Regulatory compliance

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Detailed view of capabilities to support immediate impact

6.1 Analytics – Segmentation, contact (best time to call etc.) models, payment (can pay-

wont pay, top of wallet) models, dialer optimization, etc.

6.3 MIS Reporting – Report automation, portfolio dashboards, metric standardization

etc.

6.5 Dialer Management – List creation, account filtering/prioritization, inbound/outbound

blend, real-time monitoring/routing etc.

6.2 Work Force Management – Cap planning including volume forecasting, staff need

estimation, scheduling, skill based routing etc.

6.4 Hardship Offers – Hardship offer optimization, proactive offers and enrollment,

etc.6.6 QA , compliance, escalation handling, etc.

6.0 Support Functions

6.7 TCPA monitoring,

bureau reporting, compliant

management, etc.

Bank will retain: Borrower facing

activities Credit decisions and

actions Attorney

communication, and paralegal activities

Process retained by lender

Genpact capability

3.0 Late stage collections 4.0 Back office and specialized 2.0 Early stage collections 5.0 Recoveries1.0 Pre-

delinquency

1.2 Trigger based monitoring

1.1 High risk account management

3.5 Agency placement

4.5 Bankruptcy 5.1 Account ownership

3.1 Predictive (Auto) dialing

4.3 SCRA

5.2 Agency placement

4.1 Skip process3.4 Pre-litigation

4.2 Charge-off management

4.4 Probate

5.3 Debt sales3.3 TCPA manual dialing

4.7 Specialized processes may vary

by product

3.2 Account ownership – Preview

/ manual dialing4.6 Legal

2.1 Predictive (auto) dialing

2.3 Blaster and auto-agent campaigns

2.2 Preview and manual dialing

2.5 Inbound call servicing

2.6 Chat servicing

2.7 Digital channel delivery

2.4 TCPA manual dialing

2.8 Letters

Legend

TCPA - Telephone Consumer Protection Act

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Why Genpact?

Transformation:

Increased dollars collected by 5% and reduced compliance breaches by 35% in US auto collections

Scale:

4500+ professionals supporting multi-billion dollar delinquent portfolios

Domain expertise:

Two decades of banking experience in collections management

Productivity:

Delivered an avg. of 25-30%productivity via automated back-office solutions, for a leading global financial institutions

Flawless execution:

Manage 150 million customer interactionsannually with NPS of 76%

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For more details visit : https://www.genpact.com/core-business-services/collections Learn more about how we are helping our clients mitigate the business impact from COVID-19 : https://www.genpact.com/building-resilience/banking-capital-markets

Reach out to us at lets.chat@genpact.com

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Genpact (NYSE: G) is a global professional services firm that makes business transformation real. We drive digital-led innovation and digitally-enabled intelligent operations for our clients, guided by our experience running thousands of processes primarily for Global Fortune 500 companies. We think with design, dream in digital, and solve problems with data and analytics. Combining our expertise in end-to-end operations and our AI-based platform, Genpact Cora, we focus on the details – all 90,000+ of us. From New York to New Delhi and more than 30 countries in between, we connect every dot, reimagine every process, and reinvent companies’ ways of working. We create resilient, more sustainable, business outcomes. Whatever it is, we’ll be there with you – accelerating digital transformation to create bold, lasting results – because transformation happens here.

Genpact began in 1997 as a business unit within General Electric. In January 2005, Genpact became an independent company to bring our process expertise and unique DNA in Lean management to clients beyond GE, and then in August 2007, we became a publicly-traded company. Since December 31, 2005, we have expanded from 19,000+ employees and annual revenues of US$491.90 million to 90,000+ employees and annual revenues of US$3.52 billion as of December 31, 2019.

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