EXUS Collections & Recovery Blog

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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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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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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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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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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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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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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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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