Debt Collection Transformation for BFSI Leader

As one of the largest Non-Banking Financial Companies (NBFCs) in India, the client manages an extensive loan book spanning various verticals for retail borrowers. This complex operation involves a substantial internal team and outsourced field collection agents. However, a critical challenge arises in tracking and evaluating the performance of both teams on a unified platform, thereby hampering the efficiency of debt collection efforts. The absence of an early warning system, soaring bounce rates, escalating Non-Performing Loans (NPL), and exorbitant collection costs further compound the issue.

Approach:

Network Science (NS) proposed a comprehensive solution involving the implementation of a fully automated operational process. This approach aimed to offer the client an integrated platform with the capability to extract actionable insights through advanced analytics, effectively addressing the aforementioned challenges.

Solution:

AI/ML-Powered Debt Collection Platform

We introduced an innovative AI/ML-enabled Debt Collection Platform, seamlessly integrated with a diverse range of data sources. This included demographic data, payment history, credit bureau information, as well as macro and microeconomic data. Moreover, the platform incorporated real-time customer responses and digital interaction data.

Result:

Bounce Rate Reduction: Within a remarkably short span of 3-6 months, client witnessed a substantial 25-30% reduction in bounce rates. This signified a marked improvement in the efficiency of debt collection efforts.
NPL Mitigation: The implementation of our tailored solution led to a notable 20-25% reduction in Non-Performing Loans (NPL). This demonstrated a significant positive impact on client’s portfolio quality.
Cost of Collections: The initiative yielded impressive results in cost optimization, with a noteworthy 25% reduction in the cost of collections. This not only translated to financial savings but also streamlined operations.

Conclusion:

By automating operational processes, harnessing advanced analytics for insights, and providing personalized customer experiences, Network Science’s solution not only bolstered operational efficiency but also resulted in tangible financial gains.