In Focus Collections
unable to pay additional amounts. l All channels of communication are offered and a full digital journey for each customer, inclusive of an interactive customer portal for full self service.
Case study At this stage it might be helpful to highlight our work with one major High Street Retailer, which identified a need for customers known to be vulnerable, to receive an enhanced tailored approach. The Retailer identified they had a
significant portfolio of such customers with whom they had had no recent engagement. They recognised that not managing these accounts effectively was leading to a poor customer journey as there was no structured next step. The lack of engagement created
uncertainty as to whether or not the customers remained in a vulnerable position; typically, the original vulnerability was of a short-term nature where ongoing supervision for change in circumstance should be applied. A small trial was agreed to allow them to
benchmark their current management of these customers against those of a specialist external partner, and monitor potential complaints. We implemented a bespoke re-engagement
programme from the initial Notice of Assignment across all contact strategies, nurturing and encouraging the customers to engage. The results exceeded expectation throughout the trial and the KPIs evidenced the following: l Engagement – there was significant re-engagement after only two months into the trial and it remains that way today. l Vulnerable status – there has been increased evaluation of customers in correctly categorised vulnerabilities. l Complaints – appropriate treatment and outcomes have been put in place, resulting in zero complaints received.
Looking forward So what do we see looking into the future? I would highlight four major areas: l Greater forbearance and stricter underwriting – lenders will be required to give extended forbearance and manage a more bespoke customer journey in-house.
August 2020
Now is not the time for robotic processes, but we expect lending criteria to tighten further as a result. l Lenders looking for specialist partners – as lenders experience greater resource requirements, we believe they will look to partner with specialist firms who have the skills required to deliver a bespoke customer journey rather than a collections platform. l Plan values decreasing – we envisage monthly repayments reducing by 30% to 50% as furlough ends and redundancies take hold, resulting in a much longer collection tail. l Less DCA and legal intervention – we
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anticipate DCAs will move further into the white label service, whilst litigation takes more of a back seat as a tool to recoveries, being an un-natural fit alongside vulnerability in the short to medium term.
Conclusion The current situation around Covid-19 and the expectation of forthcoming economic problems is ensuring that everyone continues to adapt. It will only be the businesses that do so successfully, and seek out the right sources of help, which continue to thrive and serve their vulnerable customers in the best possible way. CCR
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