EXUS Collections & Recovery Blog

Is AI the answer to better debt collection?

Posted by Marios Siappas on Fri, Aug 17, 2018 @ 08:45 AM

Remember the cobrador del frac? Spain’s frock-coated debt collectors took an elaborate name-and-shame approach that emphasised recovering money by any means necessary. It summed up the biggest problem with debt collection: efficiency and customer experience have too often been secondary considerations at best.

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EXUS Insights: In Singapore, banks bear the burden of growing credit card debt

Posted by Dimitris Vassiliadis on Wed, Aug 15, 2018 @ 03:16 PM

Singapore has a problem with credit cards. Specifically, it has a rising problem with bad credit card debt that has to be written off: $20.74 million as of March of this year, according to the country’s Monetary Authority.

While credit card debt constitutes a modest 2-3% of household debt in Singapore, a rise in non-repayment could indicate more significant econ

omic issues to come - think 2008. If credit cards continue to go unpaid, banks will raise rates to compensate for the written-off debt; consumers will find their spending power cut, and the cost of their debt on the rise, which will combine to drive down spending.

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How does technology help develop the most effective pre-delinquency strategies?

Posted by Marios Siappas on Wed, Aug 08, 2018 @ 01:47 PM

The common conception of collections is as a historical activity. A debt was owed and is now delinquent. So it’s the act of rectifying a historical account.

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Tags: debt collection

Marginal gains for maximised debt collection: 5 small things that make a big difference

Posted by Dimitris Vassiliadis on Thu, Aug 02, 2018 @ 12:41 PM

The British cycling guru Dave Brailsford famously introduced the idea of ‘marginal gains’ to professional cycling. The logic goes, according to Brailsford, that when you improve every little thing by 1%, you'll get a significant overall increase in performance.

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Tags: debt collection

Is AI the answer to better debt collections?

Posted by Marios Siappas on Mon, Jul 30, 2018 @ 11:02 AM

Remember the cobrador del frac? Spain’s frock-coated debt collectors took an elaborate name-and-shame approach that emphasised recovering money by any means necessary. It summed up the biggest problem with debt collection: efficiency and customer experience have too often been secondary considerations at best.

Debt collection practice is modernising around the world, though. Italy, Spain, Germany, France and Belgium show the greatest propensity to up their game among the Eurozone nations, while China, India, Indonesia, Mexico and Brazil are leading the pack be

yond. Customers are becoming the key consideration for banks, and technology is improving efficiency across the board.

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Tags: Tech's Role in Debt Collections, artificial intelligence

All about data: What global data regulations mean for debt collections processes

Posted by Marios Siappas on Fri, Jul 20, 2018 @ 01:08 PM

 

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Honesty and trust: Two key pillars of debt recovery and how to make the most of them

Posted by Dimitris Vassiliadis on Mon, Jul 02, 2018 @ 11:26 AM

Adam Smith, the pioneer of political economy and arguably the first modern economist, claimed that a certain level of trust is vital for any transaction to take place. If we can’t trust the butcher to give us quality meat, we have to inspect cows and abattoirs and slabs every time we buy any - which is ridiculous.

Without trust, we don’t have a viable economy. We need to trust banks to hold our savings responsibly - and banks need to trust us to repay what we borrow.

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Tags: collections and recovery

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