The COVID-19 pandemic means that organisations need to develop new strategies for improving debt collection and reducing bad debt
LONDON, Nov. 24, 2020 /PRNewswire/ -- In a video interview published on Business Reporter, Bruce Curry, Vice President Collections and Recovery at FICO, proposes that a new approach to debt recovery is needed, enabled through data analysis and technology.
"The financial services industry is facing a crisis," Curry says. "Because of the pandemic, non-performing loan ratios are rising massively, putting major stress on balance sheets. Along with this rise in bad debt, the business environment for banks has changed, with new regulatory frameworks and accounting regimes emerging around the world."
The solutions that will enable better decision-making under these new circumstances involve gathering and combining data from a variety of sources, and using prescriptive analytics to improve rules engines and generate better decisions in workflows at scale. In addition, there is a need to manage customer expectations and experience in all channels and 24/7.
"Data-generated insights can enable you to contact individual customers with the best solution to get them through their financial difficulties," Curry notes. "Getting this right means that banks will keep customers when they return to financial health. This is crucial, given how difficult it is to acquire new customers, especially in the current environment."
FICO provides AI-powered analytics tools that use machine learning to improve decisions continuously. They can be used alongside configurable workflows and omnichannel communications to generate better business outcomes including substantial reductions in bad debt provision on balance sheets.
To learn more about data driven debt management, watch the video.
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FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. Using FICO solutions, businesses in more than 100 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.
SOURCE Business Reporter