Optimized Collection Efforts
Improve Collections and Optimize Efforts
The FinTech company we engaged with on Collection optimization was experiencing a default rate of ~12%. We used iTuring be build predictive models that predicted customer movements from one delinquency bucket to the next for pre-delinquency, early stage, late stage and recovery. iTuring developed accurate models which predicted default in the immediate next month with an accuracy of ~86%, enabling business to effectively manage portfolio monthly. This enabled the company to identify 9 customer segments based on probability of default and value at risk and develop collection strategies around the same. By focusing efforts on 72% of likely defaulters that were identified in the top 30% customers the company would improve collections by 116%.
Time to Deployment
Not only does iTuring provide highly accurate predictions of which customers are likely to default, it also enables you to identify key customer segments for optimized collection strategies. This allows collections team to focus on the customers based on their likelihood of default, value at risk and probability of repayment, thereby improving overall debt collection.