Case Studies

We have driven 35% loss savings through optimization of the early collections process

Approach

• Client was a major global bank
• Indus was tasked with optimizing early collections strategies of the personal loans business
• Identified an exhaustive list of collections outcomes; Used to streamline the collections process
• Developed framework to evaluate impact based on loss savings vs. effort
• Re-segmented risk by predicting probability to roll over using CHAID analysis; Brought in additional variables from initial analysis

Analysis

Outcomes of accounts entering collections

Strategy with controls & tests was recommended

Increased Gini by 20+ percentage points

Results

• Identified six outcomes, each requiring different treatments
• Our model outperformed the existing one by 20+ Gini points
• Streamlining of collections process reduced Ops Cost by 40% & drove 35% loss savings