CRIF StrategyOne: Empowering Financial Institutions with Advance Collection Solutions
Wilfred Sigler
Managing Director, VAS- India & South Asia Markets, CRIF Solutions
The debt collection landscape in India is complex, influenced by a myriad of factors, including economic conditions, borrower behaviour and regulatory frameworks.
The Reserve Bank of India (RBI) plays a pivotal role in shaping this landscape through its policies and guidelines, aiming to protect borrowers while ensuring the smooth functioning of the credit ecosystem. However, banks often face challenges in navigating these regulations while effectively recovering dues.
The Key Challenges in the Debt Collection Process
Financial institutions are grappling with rising default rates, regulatory pressures, and the need to manage extensive portfolios of collection management, including non-performing assets.
Key issues such as:
- Identifying high-risk accounts and predicting potential payment behaviour
- Developing targeted data-driven collection strategies to increase the efficacy of the collection effort
- Automation of strategic action to be executed at a customer level
- Managing multiple communication channels and outreach efforts
- Ensuring compliance with regulatory requirements and industry standards
- Analysing and optimising collections performance in real-time
- Fragmented data across various systems, hindering effective debtor profiling and risk assessment.
- Heavy reliance on manual processes leading to delays, errors, and increased operational costs
The Collection Process
Industry needs:
- Use of analytics to increase collection efficiency: A pre-delinquency model, coupled with early, late, and collection/recovery scorecards, forms a comprehensive framework for effective debt management. By leveraging advanced analytics, organizations can significantly enhance collection efficiency. Predictive modelling enables granular debtor segmentation, optimizing resource allocation and recovery strategies.
- Automation of collection strategies at a customer level for faster, more efficient and effective collection By leveraging AI and machine learning our solution streamline processes, reduce manual intervention, and provide real-time insights, enabling you to focus on high-value recoveries while ensuring compliance and improving customer satisfaction.
CRIF StrategyOne, a Forrester-rated AI-powered business rule decision engine, efficiently automates the execution of collections policies, scorecards, segmentations, and collection management strategies, as well as the assignment of channels and partners—all without requiring any coding. Business users can easily manage and modify these elements with just a few clicks without needing specialised IT support.
Key features of StrategyOne include:
- Data Ingestion: Gather and enhance data from various systems to create a comprehensive debtor profile
- Advanced Segmentation and Scoring: CRIF StrategyOne runs precise segmentation of debt portfolios by applying sophisticated algorithms and external models, such as Python and PMML. This allows institutions to categorise debts based on various criteria, including the type of creditor, type of debtor, etc. By accurately segmenting debts, financial institutions can tailor their collection management strategies to specific segments, improving recovery rates and reducing risks.
- Automation and Operational Efficiency: The platform automates the entire debt collection process, from pre-collection activities to execution. It integrates with the existing collection engine to streamline operations, reduce manual interventions, and ensure that the right actions are taken at the right time. The decision engine templatizes various actions, such as sending SMS, emails, or letters, ensuring that each step of the process is executed efficiently and in compliance with business rules.
- Technology-Enabled Collections: Leveraging advanced technologies such as AI, machine learning, and automation to enhance collection effectiveness.
CRIF StrategyOne delivers customisable solutions for financial institutions and offers comprehensive Collections as a Service (CaaS) solution, available in both Batch Mode and Real-Time.
Unlock the potential of AI-driven collections solution, contact us today and discover how StrategyOne can help you achieve optimal results with a customer-centric approach.