Swisscard Improves Early Collections, Reduces Net Credit Losses 40 Percent With FICO Analytics
- Swisscard increased its revenue from billable collection expenses by about 50 percent.
- Account terminations reduced more than 30 percent and net credit losses by more than 40 percent.
- Swisscard increased Net Promoter Score by more than 11 points.
- Swisscard won a 2019 FICO® Decisions Award for Financial Inclusion.
For its achievements, Swisscard won a 2019 FICO® Decisions Award for Debt Management.
More information: https://www.fico.com/en/products/collections-and-recovery
To achieve this, a joint team of Swisscard and FICO experts assessed the current state of the collections and recovery process and identified a number of key activities that would increase effectiveness across the debt management lifecycle. FICO recommended the introduction of analytically-driven treatment strategies which led to a more targeted collections focus, including earlier and stronger treatments for high risk accounts.
"With over 1.5 million cards in our portfolio and a 28 percent share of the market, our growth strategy meant taking on new customers with an optimized risk/return profile," said
Subsequently, a data driven segmentation strategy has been implemented facilitating a more targeted collections focus. This helped to overcome some of the early collections constraints such as collector capacity and limited use of self-servicing mechanisms such as two-way SMS and IVR.
Substantial additional productivity gains were made from improvements to existing dialler technology which saw a 60 percent increase in collector efficiency. A better customer experience was also established by better aligning customer communications with non-verbal collection actions such as late fee and card block.
"By making improvements across the business, the results have been spectacular," said
"Swisscard had a very clear objective for its business improvement project which helped them remain focused on the analytic techniques that would deliver the best outcomes," said
About the FICO® Decisions Awards
The FICO Decisions Awards recognize organizations that are achieving remarkable success using FICO solutions. A panel of independent judges with deep industry expertise evaluates nominations based upon measurable improvement in key metrics; demonstrated use of best practices; project scale, depth and breadth; and innovative uses of technology. The 2019 judges are:
Mike Gualtieri, VP and principal analyst at Forrester Sharon Kimathi, editor at FinTech Futures Leslie Parrish, analyst – retail banking at Aite Denise Sleem, functional specialist at Medscheme/Helios (2018 winner) Alex Woodie, managing editor at Datanami Les Yeamans, founder at RT Insights
The winners of the FICO Decisions Awards will be spotlighted at various FICO events in 2020 and win tickets to FICO® World 2021, the
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