Effective Debt collection and Recovery models
Debt Recovery
The banking and finance industry is by far the most regulated sector with mature macro-prudential guidelines. Yet in the post-Covid period, this sector was characterized by low credit growth and rising non-performing assets. Stressed assets have diminished the capital efficiencies of banks and taken away valuable time of bank management from business growth and development activities.
Some banks still follow a traditional debt recovery process where most of the customer contact and recovery attempts are made by the branches. Collection and recovery are a science, and few banks have refined their processes using centralized collection and skilled recovery units, reaping the benefit of having extremely low NPA ratios. Successful debt recovery strategies leverage behavioral science to guide customers' decision-making. Tapping into behavioral patterns helps you connect with customers in more personalized, empathetic ways. Dolma uses Generative AI models for better risk management. Risk is managed within acceptable levels from the time of customer selection, their on-boarding, maintenance, management, up-sell, and eventual exit. Customer profiling becomes sharper every time they interact with the bank or its partners, allowing for predictive models to forecast with some degree of acceptable probability, potential purchasing or transacting behavior. Dolma can provide you with customised debt collection and recovery models and digitise most of the elements using a state-of-art digital platform.