Customizing Collections Strategy

2OS developed a customized collections approach through portfolio segmentation and offer optimization. The new policy increased liquidation rates with minimal changes to costs.

Our Approach

Differentiation through Modeling

The incumbent strategy treated all delinquent accounts uniformly for bucket 2 and beyond. Leveraging internal and external data sources, 2OS devised a model-driven strategy to differentiate treatment by channel and customer segment.

  • Smarter Targeting through Segmentation

    2OS developed an analytic- driven segmentation to determine accounts with high-likelihood to self-cure, become more delinquent, and cure with intervention. Through smart segmentation, 2OS increased collections rates with no change in resources.

  • Contact-Driven Offer Strategy

    Existing offer strategy optimized at the portfolio-level with no differentiation between accounts. 2OS developed a customized offer waterfall using point-of-contact NPV models that delivered improved late stage collections rates.

  • Improved Liquidation Rates

    The resulting policy ensured optimal treatment was applied to the right account at the right time at the right cost, delivering an increase of 70% and 76% to bucket 2 and bucket 3 liquidation rates respectively 5-months post implementation.

Our Results

  • increase in bucket 2 liquidation rates

  • increase in bucket 3 liquidation rates

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