More Related Content Similar to Just-in-time Decisioning for Collections with Decisioning as a ServiceSM (20) Just-in-time Decisioning for Collections with Decisioning as a ServiceSM1. Just-in-time decisioning for collections
with Decisioning as a ServiceSM —
a Wells Fargo case study
Brad Bowland | Wells Fargo Education Financial Services
Curt Retz | Experian
Dave Coates | Experian
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2. Today’s agenda
Introductions and agenda
The business opportunity
Objectives and anticipated outcomes
Project overview
Cost / benefit analysis
Wells Fargo EFS and Experian relationship
How it works
Key differentiators
Summary
Questions and answers
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3. Introductions
Brad Bowland
Wells Fargo Education Financial Services
SVP Risk Management (EFS)
Dave Coates
Experian
Client Services Director
Curt Retz
Experian
Senior Account Executive
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4. The business opportunity
EFS Risk Management sought a decision strategy engine
for account management and collections efforts
A business rules management system for optimizing:
► Account-level treatments
► Cross-sell and retention
► Loss mitigation and recovery
Strategically aligned with:
► Customer experience and simplicity
for unique customer treatment
► Operational transformation and efficiency
► Controlled business portfolio growth; reduced costs;
enhanced revenues
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5. Objectives and anticipated outcomes
Quickly identify and execute on risk /
rewards in student loan portfolio growth
Improve ability to respond to changes in
customer and business needs
Improve efficiency and effectiveness of
collection, recovery and customer service
agents
Minimize IT resource requirements
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6. Objectives and anticipated outcomes
Evaluate and engage customers based
on their total relationship with Wells
Fargo
Track strategy performance, improve
ability to make timely changes with
minimal manual effort
Ensure compliance with centralized
management of account
treatment strategies
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7. Project overview
Description
Implement an account risk management
decision engine
EFS Risk Management responsible for business
rule development, testing, and implementation
Hosted by Experian via Decisioning as a ServiceSM
► No hardware or software needed
► Uses existing BAU systems’ formats
and process flows
Leverage existing Experian data security
and system architecture
Vendor management consolidated
with Wells Fargo Consumer Lending Group
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8. Project overview
Benefits
Improve customer experience
► Unique customer treatments
Improve cross-sell, banker referral
and account retention
► Target pre-repay campaign efforts
Improve strategy implementation cycle-time
► Reduce from 12 months to one month
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9. Project overview
Benefits
Improve collection efficiencies
► 60% improvement cost / $1 collected
Improve collection effectiveness
► 40% improvement in delinquency rates
Reduced losses
► 25% improvement in net loss rates
Improve scorecard deployment
► Avoid IT coding, saving $100,000 / scorecard
Realizing an ROI = 20:1
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10. Project overview
Stakeholders
Risk Management
Collections
Contact / Service Center
Collections System Support
Enterprise Security
Enterprise IT
Enterprise Vendor Management
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11. Project overview
Environment
EFS was one of only two
consumer business lines
currently lacking back-end
decision engine capabilities
EFS evaluated multiple (four)
competing solutions before
choosing Experian
Other Wells Fargo business
units currently evaluating
legacy decision platforms
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12. Decisioning as a ServiceSM
How it works
Diagrams of the batch processing
environment
► Overall environment
► Automate strategy updates
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13. How it works
Production process flow
Wells Fargo EFS 150,000
legacy systems accounts
per day
SOR 1 SOR 2 Collections system
End to end
DaaS Production < one hour
Daily secure file transfer Batch initiation script
at independent times Hands-off
Combined
Trigger
operation
SOR 1 SOR 2 collections
file
Input
file
Input
file
file Manual
intervention
available
Quarterly
EFS data
updated
credit bureau
database SOR 1 Audit and
quarterly data
DaaS batch
collection Data
file Integrity
host application
DaaS batch file
Production append process
Reports
Monthly
EFS data account
SOR 2
collection
updated performance file
monthly database
Strategy
management Operational
Executes EFS Decision agent
reports
maintained strategies
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14. How it works
Strategy update flow
Installed at Wells Fargo Strategy
Keeps change history Strategy
management
Deploy to production Strategy
Local test environment file
design studio
(SDS)
Multi-user support
Audit and implementation controls
Automated transfer Experian secure file
Private and secure transfer process
Strategy
file
Strategy file moved
Manual Automatic and
within the hour immediate
Timeframe flexible
Log produced and returned Production
environment
Manual control available
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15. Key differentiators
EFS benefits from hosting with Experian
Minimal Wells Fargo start-up or maintenance costs
► Avoid procurement of hardware and development
Experian’s hosting experience
Leverage existing connections
► Secure file transfer established quickly
Audit and testing functionality included
Leverage unique customer identifier for file transfers
► No SSN or other customer indentifying info needed
Leverage account management refresh process
► Future use of Collections and Retention TriggersSM
► Integrate with real-time decisioning
A partner committed to your success
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16. Summary
Needed a decision strategy engine for
account management and collection efforts
Utilize Experian’s Decisioning as a ServiceSM
platform with Strategy ManagementSM
► Leverages existing relationship, secure
connections, and vendor management
► Ability to implement quickly at minimum
cost
► Realize benefits while Wells Fargo
completes other integration projects
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17. Summary
Immediate returns:
► Improved customer experience
► Champion / challenger testing for new treatments
► Improving account retention and cross-sell
► Increased productivity of agents
► Reduced scorecard and strategy
deployment costs and timeframes
► Improve ability to meet new regulatory
and audit requirements
► Reduce loss and delinquency growth
Quick implementation through EFS and Experian partnership
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19. For additional information, please contact:
David.Coates@experian.com
Vision Expert Annex
Open every morning, afternoon and during session breaks
Meet session speakers
Gather information on Experian products and services
Request research and complimentary materials
Schedule one-on-one meetings with Experian experts
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20. May 6–9 • The Phoenician • Scottsdale, Ariz.
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