EXUS Collections & Recovery Blog

8 steps to better debt collections and recovery for banks in 2018

Posted by Chris Maranis on Wed, Jan 03, 2018 @ 04:09 PM

2018 is a huge year for the banking and finance sector, both for large institutions and individual citizens. In Europe, Brexit is on the horizon. In the US, consumer spending is set to slow as the growth rate of real disposable income also slows. China’s debt bubble looms large while ‘Political instability threatens to derail MENA’s blossoming economic recovery’, according to the world’s leading economists.

For a debt collections industry where the global average of non-performing loans rose over half a percent from 6.99% to 7.07% in 2016, and the cost to service a delinquent loan is now fifteen times the cost of servicing a performing loan according to Gartner, alarm bells should be ringing.


How to Manage Delinquent Credit Across the Entire Loan Cycle

Posted by Chris Maranis on Wed, Dec 13, 2017 @ 11:05 AM

Debt collection is in trouble - especially when it comes to delinquent credit. According to figures from the International Monetary Fund’s Global Financial Stability Report, non-performing loans make up 3.925% of total gross global loans.

While this figure is down from its high of 4.064% in 2014, certain countries exhibit a far more worrying ratio: countries such as San Marino at 43.4%, Greece at 36.3% and Sierra Leone at 30.7%.

According to the Supervisory Banking Statistics Fourth Quarter 2016, the average rate of non-performing loans of large European banks stood at 6.17% - a figure that is growing, and that dwarfs countries such as Japan and the US which saw rates of just 1.5% during the same time period. The cost of servicing a delinquent loan, say Gartner, now stands at 15 times the cost of servicing a performing loan.


4 Needs for Next-Generation Debt Collection Solutions

Posted by Chris Maranis on Tue, Jan 31, 2017 @ 02:05 PM

The right offer delivered to the right customer at exactly the right time. It is more important than you could ever imagine. Customers use multiple channels to communicate and resolve debt obligations. They also may have multiple debt obligations with a bank or company.


Tech’s Role in Debt Collections: The Right Offer At The Right Time

Posted by Nikos Lambrou on Mon, Jan 30, 2017 @ 11:30 AM

Each stage of delinquency—soft, pre-litigation, litigation and recovery—requires a different approach to keep collections on track.


When it comes to debt collections, mobile technology can bridge the gap between banks and their millennial customers

Posted by Chris Maranis on Mon, Sep 12, 2016 @ 01:18 PM

Several years on from the world financial crisis, banks still have to deal with its consequences. Besides the financial impact and the damage to their reputations, banks have had to learn to operate in a new world – a world of flat economies and rising levels of customer debt. Non-performing loans have increased and customer indebtedness, in general, has been seen to have a significant effect on the banks’ net profitability. Increasing collection costs, growing bad debt write-offs, and the requirements for higher provisions against loan losses have all combined to make managing credit loss a key business driver, with a direct impact on the banks’ profits.


What You Need to Know About the Loan Collections Technology Vendor Landscape

Posted by Marios Siappas on Mon, Jul 04, 2016 @ 10:30 AM

Loan collections costs are spiraling out of control, according to CEB TowerGroup - Now Gartner. Thanks to a variety of factors, including a fourfold increase in delinquencies from 2007 to 2010, the cost of servicing non-performing loans has skyrocketed. It stands at 15 times the cost of servicing a performing loan.


3 Reasons Why a Self-Service Solution is the Preferred Debt Collection Option

Posted by Michael Melachrinidis on Wed, Jun 01, 2016 @ 10:00 AM

Personal debt is something everyone handles differently. In a fast-paced and consumer-focused society, not all customers are receptive to collector outreach. Many consumers prefer to have non-interruptive, self-driven resolutions to their problems. This is especially true for sensitive matters like personal debt. 

To put it in perspective, you’re more likely to purchase something when you’re browsing on your own rather than when a sales person contacts you. You can apply this same frame of mind to paying off debts. Answering the phone about debt you owe is even more uncomfortable than an unwanted sales call. Consumers usually avoid this discomfort by not answering. As a result, nothing gets resolved. 

A self-service collections tool allows customers to manage their own debt obligations. Even better, banks that provide self-service as an option for customers increase collections rates, since customers can resolve obligations on their own time, in their preferred way. That’s because self-service tools give customers three major features they crave: control, convenience and mobility.