Tata Motors Finance Limited (TMFL) is the financing wing of India’s largest automotive manufacturing company. They had a set of 120,000 customer accounts in collections, and the company was already facing losses on their accounts.
A Customer Engagement center is a central point from which all customer contacts, including voice calls, chat, email, social media, faxes, letters, etc., of an enterprise are managed. According to the Head of a leading BPO that handles 9 percent of the world’s contact center traffic, over ninety percent of all engagement centers are driven by static rules-based systems.
History shows that financial Services industry has always been an early adopter of new age technologies. And even more so with utilizing their data assets for business benefits, which is essentially what data analytics is. IT is because financial services is, at the core, business of making profits over the spread between the earnings on the assets and the expenses on liabilities over a reasonably big customer portfolio.
Once the consumer commits a default on his due amount he is moved to collection. Collection team follows up with mails, notices, SMSs, calls and if required debt collector visits.
Debt management and collection is one of the core functions of any financial institution that has some outstanding payment with consumers.
Debt Management or Collection Analytics helps the debt collector or debt recovery processes to understand the behavior of customers, predicting their behavior after defaulting and prioritizes their collection activities to maximize their recoveries and reduce cost.