CRIF sponsors the “Debt Collection & Sales” event
CRIF sponsored the “Debt Collection & Sales” event”, organized by SmithNovak and held in Prague the March 21, 2018. The Czech debt market is changing - new players are coming in, legislation is changing and new technologies are emerging. The “Debt Collection & Sales” event was a great opportunity to discuss and analyze these important market trends.
The topics discussed were where the future of the Collection process is going, whether it will be affected by the GDPR, or whether call center operators will be replaced by Artificial Intelligence in the future. At the same time, examples of case studies from the Czech Republic and beyond concerning investments in receivables and their yields were shared with all participants. The speakers were representatives of leading Czech banking houses, non-banking institutions, collection agencies, technology companies and other specialists.
Fabrizio Arboresi, Director of EMEA Markets at CRIF Credit Solutions, gave a presentation on “Preventing and Managing Non Performing Exposures: an end-to-end approach”. In particular, Arboresi's presentation focused on how to manage prevention, delinquency and recovery management to reduce NPLs and the cost of risk, and increase the recovery rate. Using a real case history, Arboresi talked about the adoption of an early warning system for customer risk profile assessment, action plan definition for each customer isotype, and an industrialized approach to execution. In conclusion, the main direct and indirect benefits given were:
- Loan Loss Provision reduction, by effectively anticipating the Delinquency Management and limiting the DPD
- Capital requirements optimization, by reducing the impacts of defaults with a positive impact on the portfolio PD, thanks to greater effectiveness and efficiency in the monitoring and collection phases
- Increase in the recovery rate by strengthening collection processes
- Containment of provisions/adjustments, thanks to the higher recovery rates
- Optimization of credit monitoring processes, essential for preserving portfolio quality and predicting events
- FTE reduction, thanks to collection outsourcing management.