MBD Credit Solutions’ best practice collection and rehabilitation strategies apply the most appropriate scoring technology, depending on the status and delinquency level of an account.
In order to create a cost effective and robust delinquency management strategy MBD Credit Solutions segments accounts according to their delinquency stage within the credit life cycle. The scoring technology used is a behaviour recovery score, which predicts the likelihood of a debtor repaying the outstanding balance.
The objective for MBD Credit Solutions is to rehabilitate a debtor that is in an early stage of delinquency by profiling debtors according to their behaviour patterns, using one of the following scoring technologies:
- Risk Scores – predicts the probability of mildly delinquent accounts becoming highly delinquent
- Recovery Scores – predicts the payment ability of highly delinquent accounts
Consequently, the appropriate collections tactic is applied, using the profile to drive the collection action according to:
- Type – letter, telephone call, SMS, handover, etc.
- Tone – severity, content, etc.
- Timing- immediate, delayed, etc.
MBD Credit Solutions will apply dynamic collection models and strategies taking into account changes:
- Credit environment
- Client’s requirements and
- Client’s provision strategies
- The economic outlook