Innovation in the ARM Vertical; Trends and Best Practices

Work smarter. Collect more. Combine Workflow, Analytics and Partner Communications to dramatically boost results

Jerry ArehartRegional Sales Manager, ARM Division

Interactive Intelligence

Evolution of Collections & Recovery

Basic Collections FunctionsHard-Coded Decisioning ProcessesPortfolio and Collector Level ReportingOutsource Accts based on quota or limitations manuallyAccts are ‘bucketed’ by DPDGeneric User InterfaceGreen/ScreenBasic Dialer Integration

Enhanced Collection FunctionsFlexible acct decisioningAutomated and on-request reportingClient/Server ApplicationsScripting emergesEmergence of Predictive ScoringAutomated Account PlacementEfficiency is stressed – limit keystrokes!Predictive Dialing

Custom Interfaces based on Collectors RoleFull on-line integration with other applications and vendorsChampion/Challenger StrategiesAcct Placement based on Predictive VariablesOne System for Collection and RecoveriesFocus on the Client rather than acct

20 Years Ago: ‘Dialing for Dollars!’Simple Management Strategies

Today (and Beyond): Focus on User InterfacesTreat Client rather than the account

10 Years Ago: Stress EfficiencyUse of Analytics Emerging

Common Challenges in Receivables Management

• Legacy systems no longer viable to address rising business requirements

• Product & organizational complexity

• Complex integrations to systems and vendors

• Ability to quickly support changing business requirements and data access needs

• Loss of productivity and effectiveness due to number and complexity of ‘hand-offs’ that occur throughout the C&R cycle

• Lack of visibility into key performance metrics

• Targeting the right resource for greatest return

• Multiple CRM / HOST systems to manage

• Increasing competition to accommodate a consumers communication preference

• What to do with all the data on the consumer?

• Inability to quickly change a collections strategy

• Increased attention to the consumer experience

• Increase cost of doing business

• Effective bi-lateral communicate with outsourced agencies.

2014 Trends & Hot Topics

1. Maintaining customer loyalty when accounts become delinquent

2. Compliance for Client, Local, and Federal regulations.

3. Best ways to increase automation

4. Focusing agents on tasks that deliver the greatest ROI.

5. Cloud grows for software applications

Workflow

• Automate business rules, processes, recovery strategies - collections, recovery, litigation, agency management & more

• Start with business defined processes

• Configure with visual flowcharts

• Run multiple workflows simultaneously

• Create, test and deploy workflows – without help from IT

• Consistent adherence leads to better compliance

• Greater efficiency means collecting more

• Need a tool to accommodate all the data…

Advanced, integrated analytics allow an organization to target the right accounts with the right effort to significantly improve bottom-line performance

Analytics

Integrated Analytics

Analytics Solutions

• Output can be a score, a treatment, or both• Models for Collections and Recovery

o Event probability: roll from x to y, payment, charge-off, bankruptcy, etc.

o Amount: expected collection amount (ECA), amount at risk, net present value (NPV)

o Treatment Recommendation: call, no call, best time to call, etc.

o Contact Channel Optimization: Letter, SMS, Text, Call and IVR (Virtual Agent)

o 3 Party Optimization: place vs. sell, agency vs. legal, agency A vs. agency B

• Visibility into business operations

• Empowered to make informed decisions, effect change

• Offers views of what you need to see – a single agent, a unique portfolio or the entire enterprise

• Accommodate multiple data sources

• Easily configured by the end-user

• Greater visibility= higher compliance and adherence to business rules.

Analytics: Key Performance Indictors

Effective Creditor/Agency Management

Agency Manager

• Seamless integration with internal and third party systems

o Greater Transparency

o Automated requesting and complex multi-step processing

o Paperless processing

o Multiple connectivity options

o Real-time or batch transmission

• Partnering industry leading vendors, suppliers, and service providers, including leading analytic solutions

• Robust tracking, monitoring, and performance reporting

• Network for deploying analytics

Data Suppliers

Coll. Attorneys

OCAs

Partners/ Vendors

Data Suppliers, Vendors, Service Providers

WEB-HOSTED ASSIGNMENTS -Asset Remarketing-Attorney Referral

NOTIFICATIONS / COLLABORATION PORTAL – Forum

VENDOR ACTIVITY REPORTING

ELECTRONIC WEB MAILBOX

Collection and Recovery Topography

Frame Relay / Internet / VPN

PREDICTIVE ANALYTICS

Vendor-A

Vendor-B

Vendor-C

XML Direct Link / Integration

AGENCY MANAGEMENT

DECISION SOFTWARE

CSR / AGENTS

Business Case for an Integrated Solution

“Investment by retail lenders in solutions to support collections or recovery processes has long lagged other credit business processes. Consequently mature and disparate systems abound. Combining workflow, scoring and analytics with partner communications into a single end-to-end collections and recovery solution allows credit grantors to move beyond tactical to strategic initiatives.”

- Christine Pratt, Senior Analyst, TowerGroup

Decision Management in Action: Managing Risk in Financial Services

• Problem: Complexity of placing accounts with agencies and managing and measuring those agencies to achieve optimum performance

• Solution: Implemented Agency Management Services and Enhanced Reporting Service

• Results: Recognized Partner Network as a “Strategic Platform” Increased productivity by 30% within the first year

What “OTHER” innovations are happening in the industry?

• Communicate with the consumer on their preferred “channel”

• Social Media

• Significant advances in call analysis

• Advances in speech recognition

• Pure - Cloud data centers

Work the way you want while injecting decision-critical information into the formulation of more efficient

collections and recovery strategies.

You get more precise control, greater staff productivity and increased

collections effectiveness.

Work Smarter

Q & A

Thank you