FICO recently unveiled the latest version of its Debt Manager platform by integrating with the Telrock digital payments application SmartCollect to help lenders improve the speed and efficiency of receiving loan payments from borrowers through mobile devices and electronic tablets.
Today, collectors are increasingly using mobile channels to communicate with customers. Among Telrock’s lending clients, 40% of borrowers who were contacted through a mobile service paid directly through the device within 30 minutes of receiving the alert. Additionally, 80% of borrowers paid within 48 hours of an alert.
“Banks continue to be plagued by high levels of delinquencies that aren’t addressed adequately by old-school collections techniques,” said David Lightfoot, vive president for product management at FICO. “With FICO Debt Manager, lenders can streamline the collections process and leverage the ubiquity and convenience of mobile devices for better results and lower costs.”
FICO Debt Manager supports collections for credit cards, mortgages, secured and unsecured loans and checking-account overdrafts. A preconfigured version of the solution called FICO Debt Manager Live can be deployed by a lender in as little as four months, the analytic provider said, rather than the 12 to 18 months that traditional collections systems require.
The solution was built based on industry best practices that has helped companies realize 15% reductions in bad debt and 50% deductions in collections and recovery costs.
“We chose Debt Manager Live because we can implement the system faster, and use the preconfigured strategies to immediately differentiate customer treatment based on their needs,” said Anthony Travagline, head of collections at EnterCard, a Nordic credit card company. “The integration with Telrock’s mobile services will allow our customers to have input on preferred communication channels while simplifying their ability to make payments or set up payment plans. By leveraging technology our intent is to make interaction easier for our customers through their mobile devices and computers.”
FICO said the product is ideal for businesses of all sizes that have limited budgets and firm implementation deadlines but still need the flexibility to expand their collections solutions over time.
The pre-configured FICO Debt Manager Live option includes data and pre-loaded collections strategies and treatments organized by product, delinquency bucket and risk level. All of these options allow banks to achieve results faster, Lightfoot said.
In addition to the integration with London-based Telrock, the Debt Manager platform includes several new features and enhancements to its existing capabilities, including automated proposals for loan workouts, improved usability and access to account histories, agency management and dialer notifications to improve the productivity of collectors.
