Collection Score

There is no single credit-lending business which has no delinquent customers. No matter how clean the portfolio is, whether it’s collateralized or not, there will always be collection cases. It is then the business’ interest to collect or recover as much debt as possible by any means.

It is also notably true that not every delinquent customer is a ‘bad’ customer. Some of them just accidentally forget the due date, some habitual, some self-recovered, whose cases actually are non-risky fee income source for the business.

id/x partners helps clients refine the collection strategy through our proprietary collection scoring system. Based on customer’s past behaviors in both non-delinquent and delinquent states, the system is able to determine which of delinquent customers has higher chance of collectibility/recovery, who should get harsher treatment, what is the cost-effective medium to use, etc.

We recognize that the collection treatment should be appropriately applied to each customer case. Differential treatment based on collection score is the right solution for managing customer relationship.

Recovery Score

Bad debts are often written-off to clean-up accounting books and let the company concentrate its effort in managing healthy portfolio. Written-off accounts are to be managed by a specialized team to recover any income.

The benefit of recovery score is to enable the specialized team to maximize the rate of recovery of such written-off accounts by utilizing past information such as:

  1. Past performance in some cases  
    Credit history, payment history, etc
  2. Demographics characteristics  
    Age, Income, Sex, Education, Occupation, etc
  3. Psychographics characteristics  
    Traveler, Risk taker, Cash user, etc

By knowing most of the elements above, company can already improve their chance of getting desired response as high as 5 times compared to traditional recovery effort.