Collections Optimization for a Small Business Fintech

Background: Client noticed deteriorating performance in delinquent account management and engaged AQN to evaluate and overhaul their Collections program

Outcome: Collections program overhaul was projected to generate incremental profitability of about $4.4MM on a one-time basis and $2.2MM on an ongoing annual basis

AQN’s Approach:

  • Analyzed current contact strategy effectiveness through data analysis and agent/floor manager interviews and compared it to industry standard practices and benchmarks

  • Assessed Collections vendor’s tools, strategies and processes to understand gaps in the existing program structure

  • Reviewed their lending product design to understand implications on Collections targeting strategy

  • Evaluated seasoned delinquent debt for immediate monetization opportunities

Key Results:

  • Advised client on required data/infrastructure enhancements and tool-set expansion

  • Managed collections vendor relationship on behalf of client and introduced process changes

  • Recommended changes to policy of handling missed payments and their allocation

  • Isolated a portion of existing debt for immediate liquidation through a sale and recommended litigating the remaining debt to maximize short term recoveries