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Omni-Channel Approaches to Collections

519 #00144

PRESENTED BY:

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Andrew DominoDirector, Bridgeforce

Vance ClipsonSenior Principal, Nuance

Heather BentleyCitizens Bank

Omni-Channel Approaches to Collections

Chris RathsackCitibank

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Digital Collections TimelineIntegrating Digital Tools into Collections Performance for Two Decades

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03

–2

00

7

• Working with multiple industry leaders to deploy and refine digital collections

• E-mail, online and text

Early Adopters

• Digital techniques are expanded to secured asset classes

• Offerings expanded from Collections and Recoveries to include Loss Mitigation (info capture and offer)

Into Secured

20

08

–2

01

0

• Focus upon Collections performance essentially stops, and digital capabilities shift to compliance

• US adoption of digital collections by new institutions slows substantially

20

11

–2

01

5 Regulatory Focus

• Early adopters are radically reducing outbound calling, and some already collect over 50% of payments digitally

• Collections performance may not yet support but digital collections is critical now

2nd Wave

20

16

–2

01

8

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Omni-Channel Defined“Integration and orchestration of channels such that the experience of engaging across all the channels someone chooses to use is as, or even more, efficient or pleasant than using single channels in isolation.”

Wikipedia (Link)

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Why O-C May Soon Become O-DPlethora of data, all pointing the same way

The path to the future of financial services is beyond thinking Omni-Channel but Omni-Digital

Omni-Channel is still critical to collections, understanding customer needs is the key

Board of Governors of The Federal Reserve System (Link)

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Credit Card Debt – By Age

$0

$2,000

$4,000

$6,000

$8,000

GENERATION Z GENERATION Y GENERATION X BABY BOOMERS SILENT GENERATION

The Urban Institute (Link)

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0.00

0.05

0.10

0.15

0.20

25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 65 67 69 71

Credit Card Delinquency Rates

Millennials

Gen X

Baby Boomers

Frac

tion

w\D

ebt

120

Day

s D

elin

quen

t

Federal Reserve Bank of St. Louis LINK

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Mobile Activity by Banked Households Checked email

about an account

Checked balance or transactions

Text message alert

Bill payment

Transferred money between accounts

Deposited a check electronically

Sent money to others

44.1

35.4

34.0

19.0

26.513.2

25.412.2

18.05.6

13.75.9

20132017

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Where Do You Start

§ Establish or clarify your operating model vision

Relevant Approach for Lenders:§ Beginning the Journey (Buy versus Build) § Keeping momentum while journey is underway§ Embrace the change to strategy Omni-Channel will bring

Start With the End in Mind

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Driving Value with RequirementsDefine operating model–strategy, tactics, performance

Defined requirements are still crucial–future state capabilities, future customer use case scenarios

Embrace partnerships where you need it(technology providers/external support)

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Data is Your Currency

Tech Republic (Link)

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Data is Your CurrencyCustomer enters early stage delinquency

OFFER: Receive a minimum payment credit for completing personal finance data sheet and syncing external financial data

Comprehensive risk profile shows increased default risk since DDA is different bank

OFFER: Receive a multiple incentive offers to switch over DDA account or link primary accountCustomer

accepts an offer and links account

Detailed financial data identifies restricted consolidation opportunity

OFFER: Accept a lower APR consolidation loan and close revolving accounts accept current CC w/Personal Finance Program participation

OFFER ACCEPTED– Customer consolidates and attends virtual PFP sessions

Customer makes progress in personal finances and debt management–starts building a Wealth Management portfolio

$Customer loves her banking relationship

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Avoid the Pitfalls Common Snag§ Assuming that big data is the Easy Button!

Less Obvious Snag§ Omni-Channel will never be set it and forget it § Looking for all channels to do all things

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Avoiding the PitfallsAssuming that Big Data is the Easy Button

§ Interrogate your existing data points in collections, you know what works!

§ Ensure the future state requirements include what is successful vs. what is new

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Avoiding the Pitfalls Trends to identify:§ Online activity pre

delinquency§ Online engagement

while past due§ Keyword searches§ Journey Drop-outs

Omni-Channel requires maintenance –Plan for it

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Avoiding the Pitfalls§ Assess your current Multi-Channel

state, know what your customers like§ Use this intelligence to guide channel

development and deployment § Account for a crawl-walk-run approach

in your design, focus on deploying one complete channel at a time

Incomplete channelcapabilities

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How to put this strategic approach to work

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What does an omni-channel platform look like?

Digital Voice Security Analytics

Intelligent Engagement Platform

AI for Prediction AI for AnalyticsAI for ConversationAI for Prediction AI for Conversation

Website Messaging IVR Social IoT TVMobile

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Establishing a foundation

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Investment typically not even; must prioritize

Work across silos

Channels/staff can’t be in competition

Ideally one leader with top-down responsibility

21© 2019 Nuance Communications, Inc. All rights reserved.

– Must decide on guiding philosophy

– Drive or deflect to low cost channel

– Or honor customer preference– Hybrid not as successful

Customer—or cost-driven?

22© 2019 Nuance Communications, Inc. All rights reserved.

– Especially important if customer-focused– Avoid weak channel; creates poor CX– Ideally accomplish similar tasks– Customers don’t want to change channels

Each channel strong

23© 2019 Nuance Communications, Inc. All rights reserved.

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Three best practice tips for success

25© 2019 Nuance Communications, Inc. All rights reserved.

– Automated-to-live is often best

– If IVR then to live agent

– If virtual assistant then to live chat

– If mobile app then to VA or phone

Best channel combinations to start

– Maintain authentication– Context of conversation– Reduce agent handle time– Central data repository

Maintain context across channels and journey

26© 2019 Nuance Communications, Inc. All rights reserved.

Leverage analytics for continuous optimization

− Influences staffing− Informs customer

journey− Data-driven design

27© 2019 Nuance Communications, Inc. All rights reserved.

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Three common pitfalls to avoid

Misalignment of people processes

Disparity in contact center support by modality

Data must be aligned, available, updated

Agent desktop important

Capabilities should be equalized

29© 2019 Nuance Communications, Inc. All rights reserved.

Don’t make customer change context

Channel escalation difficulty

IVR to live or digital

Web to VA or live chat

Mobile app to VA or phone

Outbound to phone

Tracks back to channel combos

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Don’t try to solve complex inquiries in automated channels

Getting channel parity wrong

Two views on parity

Accomplishing same things in each

Comparison of automated-to-automated,live-to-live is better

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What it can look like

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Delta AirlinesConnecting outbound and inbound channels to improve experience & containment

– IVR & agents aware of outbound text, email & voice messages– 5.2% containment rate (goal was 3%) – $5 million savings

Are you calling about your flight to Sarasota? We’ve got you rebooked. Would you like to hear your new flight information?

Yes

You have been rebooked on Delta Flight 2329 departing at 8:10 pm. You are checked in and ready to board.

Due to weather conditions, Delta Flight 129 has been canceled. We are in the process of rebooking you.

Text or voice

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A collections call to that traveler… Platform detects mobile # and sends a text rather than leaving voice mail

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Key Takeaways

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Key Takeaways

Optimize with Reporting &

Analytics

Enable Easy Channel

Escalation

Strong Cross-Channel

Connectivity & Context

Clear Objectives &Requirements

Big Bites Lose

Momentum