The days of bolting analytics onto main strategies are behind us, with advanced technology informing both strategic and operations decisions. Lenders and collections teams have traditionally bolted analytical tools onto their main strategies, using them to test ideas, segment accounts and validate approaches. Now the landscape has changed. Advances in automation and analytics mean this technology needs to be elevated in the organisation, given equal billing rather than treated as an optional extra. At QUALCO we believe operations and analytics should be seen as equal contributors, interacting to benefit each other throughout the credit lifecycle, instead of analytics being used as a “vertical” tool to be applied to specific problems in isolation.

1. Operations & Analytics
Partners in Collections
Best Practices

2. The days of bolting analytics onto main strategies are behind us, with advanced technology
informing both strategic and operations decisions.
Lenders and collections teams have traditionally bolted analytical tools onto their main
strategies, using them to test ideas, segment accounts and validate approaches.
Now the landscape has changed. Advances in automation and analytics mean this
technology needs to be elevated in the organisation, given equal billing rather than treated as
an optional extra.
At QUALCO we believe operations and analytics should be seen as equal contributors, interacting to benefit
each other throughout the credit lifecycle, instead of analytics being used as a “vertical” tool to be applied to specific
problems in isolation.

3. Automation has clear direct benefits in operational efficiency: single agent views, guide scripts and
dialler integration can significantly increase operator efficiency and lower training costs. Firms can achieve
customer and accounts-based portfolio segmentation, automating customer contact via SMS, post
and email. Back-office functions such as customer requests, direct debits and legal action support
can all be integrated within the same architecture.
Rather than spending time on administrative tasks, collectors have more time to interact with
customers. Analytical techniques mean they are more likely to be targeting accounts with a high
propensity to pay as well as assisting complex cases or those with vulnerability.
As such, we need to consider the impact of every new capability in terms of both operations and
analytics. This is true for both technology and business operations.
When adding new functionality to systems, every new operational capability needs a facility to
collect appropriate data for analytics and receive analytics feedback to optimise the process. In
business operations, changes should be driven by analytics and result in measurable benefits.
Operations & Analytics
Partners in Collections

4. A uniform, automated approach to analytics means that they can be applied to any business
problem. Those leading the field are deploying models that:
Quantify probability to accept & honour
arrangements
2
The use of analytical tools enables organisations to make constant improvements in performance, giving
a multi-dimensional and transparent view of collections results and determining where to focus
resources to drive improvement.
Estimate customer response to letters1
Analyse effort allocation (such as call
attempts)
Pinpoint under-represented portfolio
segments
Estimate when to call and how long to keep
trying
Identify accounts being given the wrong
treatment
Price portfolios more consistently,
accurately and with less manual effort
Provide regulatory, management and
investor reporting automatically.
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3
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5. I know the drill. What’s next?
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