Auto Finance Collections Framework

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  Auto-Finance Collection - a one stop solution for delinquent car loan/lease accounts

Inspiration

Debt collection, in any of the associated industry happens to be one of the most important part of the Debt processing life cycle and yet, it’s the most challenging part as well. More and more customers are failing to meet the due date and thus day by day greater number of financial institutions are incurring losses due to these delinquent accounts. Automobile industry, along with leasing or selling the cars, also offers loans to the customers. When such loan/lease accounts observe delinquency, it becomes even more challenging.

Current Challenges Following are the major challenges that the Auto Finance Collectors face today which this application targets to address –

• Longer time-to-market and cost leveraging the latest technology. • Inadequate Collection Strategies for Queuing & Next best Action based on the account. • Silo effect and poor coordination of activities across processes resulting in delays. • Lack of transparency across the processes. • Agents don’t have a 360-degree customer view to quickly collect/recover debt. • Lack of standardized Repo process

What it does

The Auto Finance Collections application is a web based Pega solution for processing such delinquent accounts (Agreement in the context of leasing or purchasing a vehicle) providing collections business processes like Loss Mitigation, Payment Solutions, Automated Settlements and Vehicle Repossession.

Account Queueing

1. Daily external batch feeds the accounts to the external table.
2. Pega Batch runs daily to process these accounts and creates collection cases.
3. Auto Fin Coll app also generates service items called 'General Collection' and routes it to different queues and users based on business criteria. Account processing
4. Collection agents start their day by hitting Get next work.
5. Agents connect with the customers by using phone/email/letters.
6. Agents provide the customers the best possible solution to repay the debts and schedule payment plans after discussing with the customer.
7. The customer is remineded with letters and phone calls periodically after 30/60/90/120 days.
8. As the customer starts skipping the installments, the bank initiates the repossesion of the car as the days past delinquency grows high, followed by reselling and remarketting of the vehicle.
9. Alternatively, if the customer pays the delinquency balance completely, the promises and all other tasks along with the collection case are resolved by the Pega collection app automatically, other applications are also notified systematically.

Dynamic Case Management

1. Automated processing of high volume of accounts daily
2. Configurable smart routing of accounts with weight balancing.
3. Client Outreach & Integrated interactive solution with correspondence options like e-letter/postal mails, phone and email.

How we built it

We built a Pega based dynamic case management ecosystem powered by Customer Service for Financial Service FW. This is an end-to-end vehicle loan and lease collection ecosystem which provides a well-orchestrated, omni-channel & CTI capable solution that brings best of the breed technologies in a simple, plug-and-play, cloud native environment to reduce effort, and risk exposure, and enhances collection and vehicle debt recovery. Every aspect of the collection process from initial account queueing to final debt collection with vehicle repossession is encapsulated in this proposed solution ecosystem.

Challenges we ran into

We initially faced challenges to simulate the webservice data which constitutes the customer 360. Later we resolved it by Pega's out of the box Data type option and leveraging the flexible approach of importing and exporting data from excel worksheet. Also we initially faced challenges to implement the nightly batch, but later we solved it using Pega Data-flow based batch processing.

Accomplishments that we're proud of

Happy to bring onboard the following values to the collection ecosystem with the incorporation of the solution -  Speed o it gives you the choice of Dev ops based Rapid rollouts, o a whole gamut of Pre-built service components and o end to end Integration capabilities with almost all major technologies/platforms.  Accuracy o right from day 1 it brings Improved Client Satisfaction, o it Manages and tracks in the collection account with robust Case management features, o Guides your teams, CSRs with pre-built terms and coaching tips which adapts dynamically based on the current context of the customer and the account,  Digital footstep o brings onboard the Client to latest Pega versions thereby making it Cloud Native, o its highly flexible with its Plug-n-Play Architecture,
o has industry standard Self-Learning AI/ML,  Scalability o offers Extensible Solution, o respects the institutions current ecosystem and thus have a high ability to adapt to your unique business processes. • Savings o works as SaaS Solution, o Leverages your existing IT Investments, includes Flexible Commercial Terms

What we learned

• We have learned the overall business of Auto finance collection, it's inline challenges and complexity in collecting the money, specifically during the pandemic era.
• How to build a Journey centric approach to build an end-to-end vehicle collection ecosystem to ensure rapid recovery.
• How to minimize the overall turnaround time by distributing the accounts in a balaced manner across various groups

What's next for Auto Finance Collections Framework

NBA using CDH, Omni channel interaction with customer, pushing the accounts to the next phase - Auto Fin Recovery.

Built With

• csfs8.5
• pega8.5