Using New Technologies to Enhance Business
Performance
Donna Weaver, RNN Group
Session desription
• Recent and pending changes to collections and recovery regulations have stretched existing systems and resources, resulting in ever rising compliance costs and risk. Learn how top U.S. credit issuers and their collection channel partners are using an innovative technology to improve the consumer’s experience, enhance collections, and increase regulatory compliance. Representatives from two leading-edge companies will highlight ways to streamline your operations by leveraging the latest technologies.
Leverage data & technology outsource model
• First Vendor best of breed partner/outsource model• Jim Van Schaik, Lexis Nexis• Donna Weaver, Amex, Fortune 500 financial shared
service center
• Build the most efficient, cost effective, secure service model in the marketplace• Clients focus on core competency to achieve
maximum results
When to invest in technology for data?• Security and compliance• Find people faster• Reduce expense of finding people• Increase resource scalability• Cash flow business
Procuring DataTRADITIONAL waterfalls
• Vendor sets• BK, Deceased, Military (sometimes phone, address)
• 1-2 vendors
• Verified Place of employment, 60-120 days to get all hits• 2-4 vendors (as high as 6)
• Phones (RPC -verified phones- & raw)• 1-3 vendors
• Raw place of employment• 1-3 vendors (as high as 8)
• Verified Banks, 30 days• 1 vendor (high as 2)
• Raw bank• 1-4 vendors
Internal ResourcesGoal: achieve maximum results in shortest period of time
Testing new providersManage files through waterfall(s)Use internal collection and/or skip tracing
resources (no value efforts) Work through raw data, typically 3-10% verify
Manage not buying same bad data multiple timesManage multi vendor security and compliance
docs
ROI
• Cost of data• Cost of resources• Security and compliance
Leverage technology and best of breed data partnerFirst data outsource model – one-to-many
connectionMulti product, multi-tier product types under one
umbrellaTechnology to streamline processing and custom
build waterfall rules within systemFull security and compliance
One to Many Custom Waterfall Services ProductsCategory RNN Product Name
Bankruptcy, Deceased
Military
HR Direct Verified POE database
Data Verified POE
Manually skiptraced Verified POE
VERIFIED BANK Data Verified Bank
Manually skiptraced Verified Bank
RPC (Verified Phone)search: source raw POE data
RPC (Verified Phone)search: phone providers
Raw Place of Employment
Raw bank searchDisabled/social security Raw Phone and address
STREAMLINE COLLECTION
FTE SVCWarm lead transfers (RNN transfers above to you when we
have them on the phone
VERIFY NON-RNN DATAOur call center can verify our your raw data (designed if
you have a data source RNN doesn't have
VERIFIED POE
RPC
RAW DATA
BK, DE, MIL SEARCHES
2) VERIFIED (Phone RPC) search and verify process (Rate 5)
3)Warm transfer (Rate 6)
2) Manually verified POE RPC phone hits (Rate 3)
and/or
RNN Manual POE Search No hi ts run through 8 data source waterfa l l - hi ts sent to ca l l center to veri fy / no hi ts returned to cl ient to expedite or through next product
1) Manually Verified (from raw data) hits (Rate 2)
3) Self employeed
4) Disabled or social security debtor leads front or back of waterfall, remove from asset searches (Rate 4)
RNN can recirculate no
hits back through entire
process at any point in the process
(RNN can perform a BK, DE and/or Mil search before any or all POE
searches)
4)Raw phone search to return unverified phones at per hit (Rate 7)
1) Back through HR Direct
and/or
and/or
RNN HR Direct Search (Rate 1) (returned in 2-3 bus iness days , PT and/or FT)
RNN multi-vendor waterfall flow (ED) example
Best of breed technology & data partner
One secure and compliant partnerRemove no value touch points in collection
environmentAccurate data fasterLower data costsScale resources on value addControlConsistencyVisibility
Cash flow
Leverage extended pay terms, Rev share contingency pricing modelDrive highest ROI, shortest period of time
Innovative Receivables Management in a
Changing Regulatory Environment
Agenda1. Challenges2. Solutions3. A Different Idea
Affect issuer, agency, legal, and debt sales
1.Downstream Information Supply Chain
2.Upstream Information Supply Chain
3.Debt Validation
4.Information Traveling with Debt (e.g. complaints)
5.Compliance Management
6.Vendor Oversight
7.Constant Change
Challenges
Solutions1. Existing systems and processes2. Build custom proprietary solutions3. A different idea - Exchange and Repository Solution
Convoke Overview►What We Do
• Secure third party data and document exchange and repository• Vendor oversight• Compliance management• Software-as-a-Service
►Initial Market Focus• Agency collections• Legal collections• Debt sales
►Market Adoption• Customer relationships with major credit issuers• 109 state level attorneys and 5 national legal networks• 22 national collection agencies• 119 registered debt buyers
Agency #1
Agency #2
Legal
Debt Buyer
Credit Issuer Third Parties
Single interfaceSystem of record integrationBi-directional information
2Measure, analyze, reportVendor oversight – audit/editCompliance management
Mobility across channelsCompliant & dispute trackingInternal/external audit tool
Exchange & Repository
31
Agency and Legal1. Issuer and third party data and
documents maintained together2. Common scoreboard3. Immediate access to data/documents
addressable at account level4. Document pre-load, ordering, delivery,
and tracking5. Case ready legal files6. Complaint tracking7. Debt validation and dispute resolution8. Upload data/documents from channel
partner based upon issuer criteria9. Audit and vendor oversight tools10.Easily move accounts among channels
Exchange FunctionalityDebt Buyers
1. Documentation available prior to or at time of sale
2. Document ordering and delivery3. Billing, cash collections, enforcement
of issuer/debt buyer contract terms4. Chain of title tracking5. Complaint tracking6. Audit and vendor oversight tools
Exchange MetricsMetric Dec
2011 Dec 2012 Dec 2013 Oct 2014
Accounts 6.2M 8.4M 11.1M 13.5M
% Increase 35% 32% 18%
Documents .8M 2.1M 3.2M 13.3M
% Increase 163% 52% 316%Supported Documents 3 20 59 86
% Increase 567% 195% 46%
Network Size 25 72 163 258
% Increase 188% 126% 58%
Agency Documents1) Affidavits2) Attorney Representation3) Cease & Desist Notice 4) Claim Package5) Complaint6) Debtor Correspondence 7) Demand Letter 8) Estate Insolvency Notice9) Estate Inventories
10) Correspondence11) Notice of BKY12) Notice to Creditors13) Other14) Power of Attorney15) Proof of Insolvency16) Settlement Letter17) Settlement Letters18) Promise to Pay
Issuer Documents1) Access Check
2) Affidavit
3) Application
4) Chain of Title
5) Change in Terms
6) Credit Agreement
7) Monthly Statement
8) Payment Copy
Large Bank Document Types
Legal Documents1) Additional Affidavit2) Adverse Outcome3) Answer . . .22) Hearing23) Judgment24) Judgment Copy Agreement25) Judgment Copy Contested26) Judgment Copy Default27) Judgment Copy Stipulation28) Judgment Copy Summary29) Judgment Copy Trial30) Judgment Execution
31) Judgment Renewal 32) Judgment Set Aside . . .51) Settlement Release 52) Stipulations Consent 53) Substitution of Attorney 54) Suit Filed 55) Summons56) Summons and Complaint57) Time Stamped Affidavit 58) Time Stamped Suit59) Vacated Judgment 60) Validation Documents
Large Bank Document Types (cont.)
Document Exchange & Repository
Vendor Oversight
Regulatory Compliance
Improved Consumer Experience
Improved Economics
• Bi-directional document mobility• Data and documents travel with accounts across channels• Detailed document order and delivery tracking controls
• Complete visibility to vendor performance metrics• Issuer/vendor see the same information• Internal/external audit tool
• Enables compliance with regulations• Loan files addressable at account level• Adaptable to changing regulatory environment
• Transparency yields improved consumer experience• Shortened timeline to resolve complaints and concerns• Analytics identifies area for process improvement
• Enhanced revenue and/or cost reductions for issuers• Cost reductions for collection channel partners• Improved collection rates
Adoption Drivers
Exchange Examples
Stocks and Bonds Shipping Telecommunications
Unsecured Lending Commodities Tickets
Change is hard, but it is possible
Appendix ASelected Screen Shots
Audit Detail
Audit History
Create New Complaint
Complaint Documents