Swisscard Improves Early Collections, Reduces Net Credit Losses 40 Percent With FICO Analytics
BENSHEIM,
Highlights:
- 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 Swisscard
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 ForresterSharon Kimathi , editor at FinTech FuturesLeslie Parrish , analyst – retail banking at AiteDenise Sleem , functional specialist at Medscheme/Helios (2018 winner)Alex Woodie , managing editor at DatanamiLes 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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SOURCE FICO
Christine Wildgruber, Maisberger, christine.wildgruber@maisberger.com, p +49 (0)89 / 41 95 99-27