opinion
Lenders are indeed (or at least they ought to be) demanding up to date credit scoring and portfolio monitoring and dealing more effectively with consumers at the pre-delinquency stage (Credit Today May 2009).
But with resources already stretched and more plates to spin, the question is where to direct your effort? There are two approaches here that will yield results. The first is to segment debtors, working out those who are more likely to become delinquent, and separating those who can't pay from those who won't pay and those who may just need a little prompting to self-cure. The second is to use the full range of both traditional and digital channels available and ensure valuable human resources are directed at the cases that most need such attention. Clever combinations of SMS, email, individually targeted web banners, micro-sites to pay and manage payment plans alongside letters and phone calls ensure resources are optimised and the best possible results achieved quickly.
The future is certainly not like the past and with risk profiles changing lenders can ill-afford to be behind the times. Those who are up to date and clued-in can steal a march in this market.
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