Our recovery models designed to be integrated into your current operations to increase dollars collected and optimize resources.
Recovery by Vintage
The primary objective of vintage analysis is the interpretation of a given portfolio in order to track effectively its trend and anticipate further performance. The analysis provides actual information based on historical data, which allows the construction of forecasts based on time series models. An important feature of applied statistical models is the possibility of comparing a particular loan or borrower with its corresponding risk level. This analysis is achieved by reviewing different values of particular characteristics of a loan or borrower with the performance results observed in historical data.
Past due or impaired loans are part of every lending operation in the financial sector and are usually managed in the collections area. However, as past due rates surpass the expected limits this part of the credit cycle becomes critical for obtaining sustainable returns.
While often seen as a final step in the lending cycle, collections actually plays a much more integral role in the overall process. In recent years microfinance institutions (MFIs) and Banking Institution (BIs) have attempted to develop new and more effective strategies for collections. This increased attention to collections corresponds to an industry-wide emphasis on credit promotion and analysis as well as to the changing and competitive environments.
We have gathered experiencies from Collections programs throughout Latin America and implemented the initial collections activities in Costa Rica, focused on Individual lending methodologies (customer based). From all the experiencies we have collected best practices and considerations that any lending institution should apply when attempting to successfully implement collections activities.
We strive to create proactive strategies to mitigate the levels of past due loans as well as define the best practices applicable for each segment in your portfolio. We recognize the valuable role that well-trained internal and external collections staff perform and we collaborate to offer suggestions for the precise collection and maintenance of data, segmentation of clients and adequate “collections alternatives” (mitigation tools) so you can meet customers’ needs and maximize the expected returns.
Finally, we provide a list of policies and procedures that contribute to successful collection management of delinquent loans.