According to MoneyCharity a not-for-profit organisation, people in the UK owed £1.545 trillion at the end of June 2017. This is up from £1.493 trillion at the end of June 2016 – an extra £1001.56 per UK adult. The higher the debt, the larger the number of people who are unable to pay the debt. The Citizens Advice Bureau in England and Wales dealt with 13,075 new debt problems every day during April 2017.
With increasing complexity and change in the debt landscape, organisations need a new debt management paradigm that can reduce overall debt while keeping the cost of collections low. Traditional debt collection strategies are focussed on re-engineering collection processes. At Capgemini, we have radically transformed debt management by applying an insight driven strategy across the debt lifecycle.
Key focus areas of an Insight Driven Debt Optimisation
Segmentation is critical for targeting the right debts – Segmenting debtor customers based on their demographics, credit behaviours and payment patterns is critical in identifying and targeting the right debtors and maximising collections.
Interventions can be insight driven – Optimising collection interventions by identifying engagement channels where debtors are more likely to respond can help maximise the response rates from debtors. Applying machine learning techniques can optimise interventions based on response patterns.
Identify them before they become a debtor – Identifying a customer or prospective customer’s propensity to debt and planning early engagement strategies can trigger actions before they fall in to debt.
Capgemini’s Insight Driven Transformation approach is unique in applying insight at every point of action in the debt management lifecycle. We have a proven track record in optimising multiple types of debts such as credit card debts and invoice debt.
Key benefits expected
- Reduction in collection costs by up to 40%
- Increase in recoveries by up to 70%
- Improved customer satisfaction through better engagement
- Regulatory compliance
- Improved cash-flow
Contact us today to discuss how you could benefit from our pipeline inspection analytics.
Head of Insights and Data, UK
Insights & Data, UK