Collections Optimization for a Small Business Fintech
Background: Client noticed deteriorating performance in delinquent account management and engaged AQN to evaluate and overhaul their Collections program
Outcome: Collections program overhaul was projected to generate incremental profitability of about $4.4MM on a one-time basis and $2.2MM on an ongoing annual basis
AQN’s Approach:
Analyzed current contact strategy effectiveness through data analysis and agent/floor manager interviews and compared it to industry standard practices and benchmarks
Assessed Collections vendor’s tools, strategies and processes to understand gaps in the existing program structure
Reviewed their lending product design to understand implications on Collections targeting strategy
Evaluated seasoned delinquent debt for immediate monetization opportunities
Key Results:
Advised client on required data/infrastructure enhancements and tool-set expansion
Managed collections vendor relationship on behalf of client and introduced process changes
Recommended changes to policy of handling missed payments and their allocation
Isolated a portion of existing debt for immediate liquidation through a sale and recommended litigating the remaining debt to maximize short term recoveries