EXUS Collections & Recovery Blog

What can emerging markets learn from the Italian banking crisis?

Posted by Dimitris Vassiliadis on Thu, Jun 21, 2018 @ 01:56 PM

Photo credit: Marcovarro, Adobe Stock

The story

The constitutional crisis in Italy was induced by the March general elections, which saw anti-establishment parties Lega and the Five Star Movement grow dramatically in vote share. Both endorsed an economic plan that hinged on Italian withdrawal from the EU.

Over the last two months, political grandstanding by the parties involved has caused concern across the Eurozone - and rightly so. The financial stability of the European Union is at stake.

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Tags: Retail Banking, collections and recovery

Lessons for the utilities sector about debt recovery best practice

Posted by Marios Siappas on Fri, Jun 15, 2018 @ 03:22 PM

 

Debt recovery in the utility sector has an image problem. There is considerable public concern across the globe about rising energy prices, with some governments stepping in to address the fuel poverty debate. As a result, utility companies receive little sympathy as they attempt to resolve unpaid energy bills.

All of this against a background where bad debt in the UK energy industry rose 60% in the five years to 2016, and a recent survey by Go Compare suggested that as many as 1.4 million people have utility bill debt. Elsewhere in Europe, an estimated 5.1 million Spaniards struggle to heat their homes in the winter months, with 4.2 million of them behind with their bills.

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EXUS Insights: Non-Performing Loans in India

Posted by Chris Maranis on Wed, Jun 06, 2018 @ 02:18 PM

The story

Non-performing loans are a huge problem across the Indian subcontinent, impacting the capital adequacy of developing economies in Bangladesh, India and Pakistan.

These unrecovered loans have created overhanging debt and concerns around the banking sector’s credit quality - and that’s become a major drag factor on economic growth and investment from abroad.

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Tags: non-performing loan

More or less? Are strict regulations good or bad for debt recovery?

Posted by Marios Siappas on Wed, May 30, 2018 @ 11:12 AM

Regulation is often used in political scaremongering. There’s too much red tape in the business world, according to some. And in certain cases, that may be true. Especially when it comes to the legal complexities of debt collection.

But is more regulation (or less, for that matter) inherently bad for collections? It’s possible to speculate at length, but the best route is to examine the varied regulatory regimes across the world.

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Tags: collections and recovery

The global psychology of promises and what that means for your kept promise ratio

Posted by Marios Siappas on Thu, May 24, 2018 @ 07:57 AM

I promise.

It’s one of the most solemn word pairings in the English language. It’s personal. We make promises in our private lives, at work, to ourselves.

Promises carry a tangible psychological weight. Numerous psychological and economic studies show just how seriously we take making (and breaking) promises, and how promises greatly enhance cooperative behavior.

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Tags: collections and recovery

EXUS Insights: Is it time for a global financial makeover?

Posted by Chris Maranis on Fri, May 18, 2018 @ 03:54 PM

Does ethical banking really exist?

It’s certainly one of the ambitions of United Nations member states, who came together in 2015 to thrash out a set of 17 Sustainable Development Goals (SDGs), spanning numerous aspects of the world economy.

A number of financial institutions have publicly declared their actions and intentions in support of the SDGs. Bank of America is committing $50m to ‘activities that advance the low-carbon economy’ and Citigroup has produced an entire report that maps the CDGs to Citi initiatives. DBS, Rabobank and Credit Suisse are just three of the other global giants that have pledged to support these goals, setting out very clearly which of the 17 are their areas of focus, and how they plan on creating real, measurable change.

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Tags: Retail Banking

The Top 6 Obstacles to Effective Personnel Management

Posted by Chris Maranis on Tue, May 15, 2018 @ 12:15 PM

The old adage goes that the most valuable asset in your business are the people - your staff. This is true from the most senior executives to people on the ground floor.

As Richard Branson, CEO of Virgin, said: “My philosophy has always been, if you can put staff first, your customer second and shareholders third, effectively, in the end, the shareholders do well, the customers do better, and you yourself are happy.” It makes sense to keep employees happy, too.

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Tags: Collection and Recovery Operations

Lessons learned: The real cost of getting collections regulations wrong

Posted by Marios Siappas on Fri, May 11, 2018 @ 05:05 PM

It’s possible to create a collections process that is super-efficient in its infrastructure, process, and service while maintaining strict adherence to banking regulations.

Where the collections process falls down, however, is when banks ignore these regulations, whether purposefully or because their systems for managing debt collections are out of date and not fit for purpose.

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Tags: collections

How to sell-in debt collections software to your executive team

Posted by Marios Siappas on Wed, Apr 18, 2018 @ 01:04 PM

Building a business case for debt collection software isn’t all about facts and figures. Even if you recognise the indisputable benefits of collections software, your decision-makers’ perspectives are likely to be very different.

Presentation, then, can be the difference between buy-in and bust. Here’s everything you need to know when building a business case for debt collections software for your executive team.

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EXUS Insights: Saudi Arabia and UAE tops for tough debt collection, report says

Posted by Marios Siappas on Thu, Apr 12, 2018 @ 05:10 PM

Saudi Arabia and the UAE are the most difficult countries in which to collect debts, according to new research – but they’re far from alone.

China, Russia, Malaysia and South Africa also scored badly, appearing in the “severe” category for complexity of debt collection. The difficulties in these diverse nations stem from the same three areas: payment terms, court practices and insolvency regulations.

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