BNP Paribas Bank Polska increased collections effectiveness to 86 percent; Daimler Financial Services cut collections costs in the Italian market
FICO (NYSE:FICO), a leading predictive analytics and decision management software company, announced that the winners of the 2014 FICO Decision Management Award for Debt Management are BNP Paribas Bank Polska, which is a part of the international BNP Paribas Group, and Daimler Financial Services, the financing arm of automotive giant Daimler AG. The two companies tied for first place due to their superior performance using customer-centric communication services to improve consumer collections.
BNP Paribas Bank Polska saw an opportunity in its Polish business unit to improve collections by automating contact with customers, segmenting customers more precisely, and identifying the most effective collection actions to take with each customer. The bank used FICO Risk Intervention Managerto contact overdue customers with interactive SMS and automated voice messages in order to expedite resolution of overdue debt. Using this solution, BNP Paribas Bank Polska increased its collections effectiveness on delinquent accounts from 82 percent in 2011 to 86 percent in 2013, while reducing headcount assigned to collections by 39 percent.
“Our collections performance has increased continually since we first deployed FICO analytics in 2012, and the technology has led to a major improvement in our business,” said Agnieszka Kunkel, head of collections and recovery for BNP Paribas Bank Polska. “FICO’s solution has given us new levels of automation and customisation that make it possible to tailor our treatment of each customer, increase the amount we collect, and shorten collection times to improve cash flow. In addition, better collections performance has had a positive impact on the bank’s provision for bad debt.”
Daimler Financial Services also used FICO Risk Intervention Manager to meet its goals in the Italian market, increasing collections and cutting costs without eroding customer satisfaction. Daimler Financial Services used the FICO solution to understand when and how customers would be most receptive to collections actions.
“It’s interesting to note that both winners in this category used analytics-based customer communications to achieve their results,” said Brian McDonough, research manager in IDC’s Business Analytics Solutions research service, who was a member of the panel of independent judges. “BNP Paribas Bank Polska and Daimler Financial Services have proven that tailoring the contact strategy to the customer can pay off in a big way, for multiple industries.”