Optimization of Collections Strategy

Financial Services, Risk Management

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


  • 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


Outcomes of accounts entering collections


Strategy with controls & tests was recommended


Increased Gini by 20+ percentage points



  • 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