Start Simple

The simplest method is to provide a daily spreadsheet of customers subject to the Collection Ruler to the bank’s communications team, which sends the relevant pre-repayment reminder or overdue collection message. Data, as specified later in this module, is extracted from the bank’s core banking or credit card systems into spreadsheets for each of the Collection Ruler steps.

The objective is to prevent customers rolling onto the next stage of collections and because of resources, focusing on high-risk but collectable repayments.

Separate lists can be created for call centres to contact customers by telephone.

Using Technology and Analytics

Alternatively, banks can buy or build their own collection system and collections database software. Whatever option they select the collection system must be integrated with the core banking platform that holds the information about the product being collected, such as the current account, loan or credit card. If the credit card system isn’t integrated with the core banking system, a separate integration with the collection system is required.

The collection system must integrate with the bank’s messaging platform to send automatic WhatsApp, SMS messages and emails.

It must also integrate with the call centre technology so that collections centre employees can make and receive customer calls.

Finally, it must connect with the CRM system contact history so that the bank maintains a 360º view of customer interactions for all employees.

The following diagram outlines how the collection system integrates with the banks’ other systems and uses a collections data repository to provide a consistent approach, based on the current and historic situation and analysis of action and results.

Stuart Harle, 2021.