Collection expert speaks

Collection expert speaks


The debt collection as business activity has always been an organic part of the whole lending process. However the importance of collection is significantly increased in the “Post-Lehman Brothers Era”.

One of the most important impacts of financial crisis is the increasing proportion of bad debts in the bank’s portfolio. The consequence of changes is that collection departments of banks have to focus more and more on optimizing their processes and utilize the available collection recourses effectively. The challenge is to “reach more with less” to manage significantly more account with the same collection team, to increase the level of collected recoveries by one collector. We expect that using a controlled, conscious collection strategy, up-to-date collection techniques and high supporting of user’s work – which are offered by integrated Loxon Collection system – collection departments can be managed as a real strategic part of bank’s business activity.

If I should introduce the advantages of Loxon Collection system in 3 short sentences, surely they would be the followings: flexibility, efficiency and advanced business logic.

Flexibility means the ability to change all the relevant elements of the collection workflow quickly and simply, without development need. In practice it means basically that we can create and modify the processes graphically in a UML-based modeling tool and on screen as well, create and modify all the generated templates and reports, and modify numerous other parameters of business logic on screen. The basic elements of the workflows can be reused and can be built on screen by users as well.

Efficiency means that Loxon Collection system is actually a ‘front-end’ system, which aims to support the daily work of the clerks. That means a lot of built-in features (ergonomic screens, call center functions, scripts by outgoing phones, daily task-lists, a set of pre-defined results for each elementary task which can be chosen by the clerk, etc.) to support the efficient work of the clerks in different level of qualification. It means also the system’s built-in logics which aims to increase efficiency, such as progressive/predictive outgoing calls, optimized task allocation, automation of tasks – if it is applicable.

Advanced business logic means functions developed with regard to the specific needs of the recent practices of the collection industry. These functions allow the collection managers to set up strategies based on up-to-date principles: e.g. collection strategy (including the segmentation, rank-ordering, resource-allocation logics) can be driven not only by account type, past-due amount and/or days past due, but by the risk of the customer (collection score, calculated by the system) or the expected recovery too. Advanced business logics aim to find the optimal level and optimal set of tools for successful collection activity.

Loxon Collection system supports managing workflows under the total default life-cycle of the customer’s delinquent and also they connecting non-delinquent accounts, from the date of delinquency (or even before the delinquency – early warning) until the date of repayment or the collection of a claim in any other way. The workflows can be optimized for the specific needs of the retail and corporate segments, too.

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