1. Profiling & Scoring Driven Collection and Recovery Management
The typical collection systems rely heavily on aging
of delinquent Accounts as the basis of collection.
However, Profitera PowerCollect leverages on its
sophisticated Scoring & Profiling approach to ascertain
the Relationship Value of each Account and
Customer before deciding treatments, work lists
generation and assignment processes. Some of the
major attributes used by the Behavior Scoring &
Profiling Engine in PowerCollect include the following:
- Collectability Score (Demographics, Payments and Behavior)
- Recent Treatment Actions & Results
- Payment Types
- Recent Payment Activities
- Delinquency Stages
- Many more categories of information
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2. Optimized Segmentation & Targeting
In the Collection and Recovery operations, generally
there is limited time, staff and patience. Therefore,
the primitive approach of “carpet bombing” all
Accounts or Customers with the same treatment is no
longer appropriate. There’s an inherent limited time in
each aging cycle before the Account gets more delinquent
by rolling over to the next delinquent bucket.
On the flip side, any harsh treatment may easily
upset good Customers and induce churn.
Profitera PowerCollect adopts an Optimized
Segmentation & Targeting approach to delinquency
portfolio management whereby the Collectability
Scores allow PowerCollect to “surgically target and
treat” the Accounts which would most likely pay,
contributing to a higher yield target of monthly
revenues collected. With this approach, the Collection
and Recovery teams would only have to target
35 % to 40% of the entire customer base to achieve
a 75% yield of actual revenue collected using
Profitera PowerCollect. The multi-dimensional cube depicted here is the view
of the whole Customer portfolio, sliced and diced
according to the Collectability Scores, Outstanding
Amounts Due and Delinquency Stage. The same
cube is also leveraged to decide Treatment actions,
Worklist generation and assignments. |
3. Flexible Aging Engine
Profitera PowerCollect has a built-in flexible Aging
engine, which allows the respective Accounts to be
re-aged, daily, for the Collection purposes specifically.
By re-aging the Accounts, one can ascertain
delinquency more effectively and apply the appropriate
Treatments, without depending on the host aging
processes. The Aging engine becomes very crucial when the
enterprise desires to amalgamate a variety of products
from various host systems (Banking – Cards,
Leasing, Loans, etc.; Telecomm – Wireless, Wireline,
ISP, etc.) into a “Unified Collection” environment.
As such, each line of business can be supported
elegantly without making too many changes to the
host system’s aging calculations. The Aging engine
also comes in very handy in dealing with charge-off
or write-back Accounts. |
4. Payment Proccessor- Re-schedulement & Restructuring
PowerCollect provides a very comprehensive
payment plan manager, which facilitates the reschedulement
and restructuring of outstanding
payments. The payment plans can be dynamically
configured by the collector to cater for a variety of
customer’s needs including weekly, fortnightly,
monthly, quarterly, etc. Additional charges like interest
charges, late payment, special fees and others
can also be added to the plan.
PowerCollect also has a built-in payment processor,
which complements the host’s general ledger for
payment knockoffs. The payment processor comes
in very handy when “Un-statemented or Unbilled”
financial transactions need to be tracked as they will
eventually impact the increase in the overall Risk &
Exposure for the credit grantor, prior to the next bill
or statement date.
In some instances, there’s also a need to temporarily
capture (or stage) the payments, which are not
reconciled on the host due to some delays or host
system problems. PowerCollect facilitates this need
via its payment staging processor, whereby the
delinquent Customers who may have recently paid
will not be adversely treated or harassed for more
payments, until the payment systems on the hosts
actually reconcile the ledger entries. This is a nifty
workaround that’s provided by Profitera for
payments that are pending reconciliation on the host
systems. |
5. Adaptive Visual Treatment Manager
In order to achieve better collection results with the
delinquent Customers, there have to be many different
treatments applied to induce payments.
PowerCollect’s Visual Treatment Manager provides
a sophisticated visual platform for multiple Treatment
Actions to be grouped into a Treatment Stream
for a methodical set of steps to be taken on such
Customers.
Treatment actions like call, SMS, letters, dunning
notices, outsourcing to agencies, etc. are all
supported via the Treatment Manager.
The Collectability Score influences this process
significantly as the treatment determination
processes also take into consideration amounts due
and aging, in the Treatment Stream assignment.
Accounts with high Collectability Scores are classified
as “Self-cures” because without doing anything
on them, they actually make payments. The Treatment management here can be by
Account or Customer. Hence, when a Customer is
targeted for collection, all associated Accounts are
brought up to the same Collector for follow-ups. You
may also use the Treatment Manager to handle
individual Accounts for each line of business. |
6. Visual Rules Architect
PowerCollect provides a powerful rule engine that
allows business management to maintain business
rules and operational policies, easily. This empowers
the business management to add or change
business rules as required to achieve the most
appropriate balance between the Bank’s unique
business practices, its policies and the Customers’
needs. PowerCollect Rules Architect allows the
Credit Collection Manager to easily set these
business rules without requiring any programming or
help of the systems developer.
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7. Auto Generation of Letters & Reminders
PowerCollect provides a bulk notification engine that
handles batch and individual processing of letters,
telegrams and SMS messages. Profitera supports
various document formats including Excel, PDF, Text,
HTML, XML, etc. The built-in template manager allow
for mail-merges to be easily done for all forms of notifications.
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8. Dynamic Worklist Generation and
Assignment
Worklist Generation and Worklist Assignment go
hand in hand as the facilitate their execution. For
generating the appropriate worklists, PowerCollect
facilitates workload re-balancing continuously. The
ability to balance Collectors’ workloads through
easy-to-use visual graphics user interface makes it a
very powerful experience. In order to make optimum
use of Collection personnel, collection managers
must be able to quickly react to changes in
collector’s availability or productivity to maximize
collection effectiveness.
In the case of Worklist Assignment, PowerCollect
also support skills and personality profiling matching
to the relevant Customers. For example, collectors
who have b personalities (dominant or influential)
can be assigned to the Customers who require
assertive treatment actions in the earlier delinquent
cycles, whereas those that are more delinquent
(Recovery stage), good negotiation skills are
required to persuade and seek timely payments. |
9. On-line Host Updates
(Suspension or Reactivation)
In Collection and Recovery, sometimes the extreme
actions of stopping services are required to accelerate payments from delinquent Customers.
Profitera PowerCollect supports the required
integration with the host systems to temporarily or
permanently discontinue the services that are
rendered. PowerCollect supports reverse updates to
the host systems that are done elegantly in real-time or batch mode.
For Banking, PowerCollect can fetch and update
Action (Block) Codes to various hosts systems
including CardLink, SemaCard, SilverCards, Card-
Pro, etc, using ISO 8583 standards for Blocking and Unblocking the Accounts on-line, real time.
For Telecom / Utilities, PowerCollect supports the
concept of Partial Barring (Soft block) and Permanent
Barring (Hard Block) of delinquent accounts,
leveraging the messaging systems for host integration,
in conjunction with the Service Provisioning systems. |
10. Future Proof Data Model (Customer Centric)
It is imperative for today’s systems to be able to
support the Customer Centric data model. Profitera’s
data model is designed to be future proof as it very
deeply supports the Customer Centric paradigm
throughout the application. Each Customer may
have multiple Accounts, and each Account may have
multiple Products or Sub-Products. In addition, Profitera
caters for multiple Customers to be linked quite
easily and elegantly to ascertain household or Holdings
Company risk exposure. This information can
be easily displayed on the user interface or generated
into an informative report.
This is a major strength of the system and in addition
to having a very b individual behavioral analysis;
we facilitate the computation of a Customer
Collectability Score too. We are able to support the
company’s senior management’s desire of controlling
the Risk Management of the respective
Customer’s Relationship, via such capabilities. Profitera
is able to take into account the delicate balance
between Relationships, Receivables and Retention
of the priceless Customer ! |
11. Performance Monitoring
The Performance Manager has three major components
- performance tracking, target management
and incentive management. This module allows for
effective performance monitoring of activities like
number of calls made, promises (PTP) recorded,
value of the total promises, targets met, targets
missed, etc. There are many real-time charts that
allow the individual collectors and their respective
teams to be tracked and measured for their effectiveness.
Collection Managers can customize the view
of the live charts and maintain a unique dashboard to
make best use of all the data the Collectors have
spend valuable time accumulating.
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12. Basel II Compliance Framework
With the advent of the Basel II compliance push
made by most Central Banks, there is a ber
justification to further leverage the Collection and
Recovery areas in managing risk better. One key
expectation of the Basel II framework is to
ascertain risks posed by each Account.
Profitera PowerCollect supports this need quite
elegantly as we believe that the best location to
assess the Risks of the relationships is in the transactions
of Collection & Recovery. Hence, our scorecards
can be run every week, month, quarter or year,
to support such initiatives. By implementing
Profitera PowerCollect, the financial services organization
inherits a comprehensive Collection Risk
Management Framework to help its Basel II compliance
better. |
13. Business Intelligence Reporting
 PowerCollect provides for current performance
metrics, financial transactional information, summaries,
and other types of crucial information that rolls
up across all Customers, Accounts, Teams, Collectors,
Products, and Locations via a sophisticated
reporting platform called PowerReports.
A variety of metrics are generated, including Aging
Accounts by Cycle, Inflow-Outflow Reports, the
number of Customers Assigned, Customers
collected, Amounts collected with insufficient funds,
Successful promises, Broken promises, etc. More
than 20 reports are provided as part of the base
application. PowerReports allows one to modify, add
and manage the entire reporting needs of the organization.
PowerReports supports many different databases
(Oracle, DB2, Informix, SQL Server, PostgreSQL,
MySQL, etc.) and generates output in many
formats including HTML, PDF, Excel, XML and
ASCII. |
14. 3rd Party Management
(Legal, Outsourced Collection Agency, Repo & Auction)
Managing of 3rd parties can be undertaken in two
ways. The simple way of generating Worklists of
Accounts or Customers for 3rd parties is provided in
PowerCollect. The other alternative way is
supported by PowerAgency, where on-line updates
and files distribution is required by the enterprise.
Here, the software application can be hosted either
within the enterprise or at a secure ISP to ensure that
the data that’s provided to the 3rd parties including
their updates provided back to the enterprise is secure.
The processes of supporting Assign, Recall and
Updates of files can be undertaken in either one of
these environments. |
15. Flexibility - Customizable & Open Platforms, Databases and Operating Systems
 Profitera provides open choices for Databases and
Operating Systems. PowerCollect supports all
major Databases (Oracle, DB2, SQL Server,
Sybase, Informix, PostgreSQL, MySQL, etc.) and
Operating Systems (Windows Adv. Server, Linux, Solaris, HP-UX, AIX, OS400, etc.).
Profitera’s PowerApps are built using Java and
XML technologies. The core engine of the application
is known as the framework layer and is actively
enhanced by the Profitera R&D team. Profitera
provides many tools to enable the enterprise IT
team members to have complete control and
flexibility in maintaining the application, GUI, Rules,
Data Model, Reports and Workflow. The source
code for the customizations are in the form of XML
files and are actually provided to the enterprise for
ease of maintenance and changes in the future.
There is no lock-in with such phenomenally advance flexibility! |
16. Holistic View of the Customer (CRM)
PowerCollect supports the 360-degree view of the
Customer as an integral part of the Collector’s arsenal
in chasing for payments. PowerCollect brings the
amalgamation of three major paradigms in to a
single application. They are:
- Transactional Details (Financial Systems)
- Customer Interactions (CRM Systems)
- Intelligent Decisioning
(Profiling & Scoring Engine)
As such, you can:
- Have easy access to vital information of
the entire financial transactions, Collection
attempts, Payments and Interactions history
to facilitate rapid response to the customers
on any issues, waivers or disputes
- Ensure that Customers receive
personalized reminders and messages by
knowing their preferred contact methods
and interaction timing
- Predict, with a high degree of accuracy, who
should be targeted with the Collection and
Recovery efforts to ensure better cash flow
and improved profitability
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Profitera Corporation is a leading provider of Revenue Collection and Debt Recovery Management Software Solutions.
With Office in USA, Singapore, Malaysia, and partners in many countries. Profitera focuses in providing innovative
solutions, leveraging the potent mix of people, technology and expertise to bring about greater Profitability for its customers.
As a dynamic business technology company, Profitera's aim is to help its Customers focus on their Clients and
optimize profits throughout their Revenue & Profitability Lifecycle. |
