Revenue Collection and Debt Recovery Management Software System

PowerCollect Fact Sheet

PowerCollect is a very sophisticated software application that effectively facilitates Revenue Collection & Debt Recovery Management. It helps to automate and streamline the Revenue Collection & Debt Recovery processes, enabling organizations to Reduce Bad Debt, Improve Cash flow, Improve Revenue Assurance, Reduce Non-Performing Loans (NPL) and improve overall Customer Service.

For Banks, it helps to address major parts of BASEL II compliance, with a comprehensive operational risk framework with built-in behavior scorecards therefore reducing provisions for bad debt, reducing statutory reserves at the Central Bank and overall reduction in NPL.

For Telecoms and Utilities, it augments the Revenue Assurance lifecycle with more sophisticated tools to improve Revenue Collection. For Government (both local and federal) PowerCollect provides a comprehensive framework to increase Revenue Collection, tighten Enforcement & Recovery and improve the Government to Citizen service delivery platforms.

PowerCollect helps many different organizations to collect revenue, manage the delicate balance between Relationships - Receivables – Retention, gracefully. Kollect ’s software solutions are unique yet they provide powerful capabilities for the enterprise customer.

Some of Kollect ’s key functionalities and unique propositions are as follows:

1. Profiling & Scoring Driven Collection and Recovery Management

The typical collection systems rely heavily on aging of delinquent Accounts as the basis of collection. However, PowerCollect leverages on its sophisticated Scoring & Profiling approach to ascertain the Relationship Value of each Account and Customer before deciding treatments, work lists generation and assignment processes. Some of the major attributes used by the Behavior Scoring & Profiling Engine in PowerCollect include the following:

  • Collectability Score (Demographics, Payments and Behavior)
  • Recent Treatment Actions & Results
  • Payment Types
  • Recent Payment Activities
  • Delinquency Stages
  • Many more categories of information

2. Optimized Segmentation & Targeting

In the Collection and Recovery operations, generally there is limited time, staff and patience. Therefore, the primitive approach of “carpet bombing” all Accounts or Customers with the same treatment is no longer appropriate. There’s an inherent limited time in each aging cycle before the Account gets more delinquent by rolling over to the next delinquent bucket. On the flip side, any harsh treatment may easily upset good Customers and induce churn.

PowerCollect adopts an Optimized Segmentation & Targeting approach to delinquency portfolio management whereby the Collectability Scores allow PowerCollect to “surgically target and treat” the Accounts which would most likely pay, contributing to a higher yield target of monthly revenues collected. With this approach, the Collection and Recovery teams would only have to target 35 % to 40% of the entire customer base to achieve a 75% yield of actual revenue collected using PowerCollect.

The multi-dimensional cube depicted here is the view of the whole Customer portfolio, sliced and diced according to the Collectability Scores, Outstanding Amounts Due and Delinquency Stage. The same cube is also leveraged to decide Treatment actions, Worklist generation and assignments.

3. Flexible Aging Engine

PowerCollect has a built-in flexible Aging engine, which allows the respective Accounts to be re-aged, daily, for the Collection purposes specifically. By re-aging the Accounts, one can ascertain delinquency more effectively and apply the appropriate Treatments, without depending on the host aging processes.

The Aging engine becomes very crucial when the enterprise desires to amalgamate a variety of products from various host systems (Banking – Cards, Leasing, Loans, etc.; Telecomm – Wireless, Wireline, ISP, etc.) into a “Unified Collection” environment. As such, each line of business can be supported elegantly without making too many changes to the host system’s aging calculations. The Aging engine also comes in very handy in dealing with charge-off or write-back Accounts.

4. Payment Proccessor- Re-schedulement & Restructuring

PowerCollect provides a very comprehensive payment plan manager, which facilitates the reschedulement and restructuring of outstanding payments. The payment plans can be dynamically configured by the collector to cater for a variety of customer’s needs including weekly, fortnightly, monthly, quarterly, etc. Additional charges like interest charges, late payment, special fees and others can also be added to the plan.

PowerCollect also has a built-in payment processor, which complements the host’s general ledger for payment knockoffs. The payment processor comes in very handy when “Un-statemented or Unbilled” financial transactions need to be tracked as they will eventually impact the increase in the overall Risk & Exposure for the credit grantor, prior to the next bill or statement date.

In some instances, there’s also a need to temporarily capture (or stage) the payments, which are not reconciled on the host due to some delays or host system problems. PowerCollect facilitates this need via its payment staging processor, whereby the delinquent Customers who may have recently paid will not be adversely treated or harassed for more payments, until the payment systems on the hosts actually reconcile the ledger entries. This is a nifty workaround that’s provided by Kollect for payments that are pending reconciliation on the host systems.

5. Adaptive Visual Treatment Manager

In order to achieve better collection results with the delinquent Customers, there have to be many different treatments applied to induce payments.

PowerCollect’s Visual Treatment Manager provides a sophisticated visual platform for multiple Treatment Actions to be grouped into a Treatment Stream for a methodical set of steps to be taken on such Customers.

Treatment actions like call, SMS, letters, dunning notices, outsourcing to agencies, etc. are all supported via the Treatment Manager.

The Collectability Score influences this process significantly as the treatment determination processes also take into consideration amounts due and aging, in the Treatment Stream assignment. Accounts with high Collectability Scores are classified as “Self-cures” because without doing anything on them, they actually make payments.

The Treatment management here can be by Account or Customer. Hence, when a Customer is targeted for collection, all associated Accounts are brought up to the same Collector for follow-ups. You may also use the Treatment Manager to handle individual Accounts for each line of business.

6. Visual Rules Architect

PowerCollect provides a powerful rule engine that allows business management to maintain business rules and operational policies, easily. This empowers the business management to add or change business rules as required to achieve the most appropriate balance between the Bank’s unique business practices, its policies and the Customers’ needs. PowerCollect Rules Architect allows the Credit Collection Manager to easily set these business rules without requiring any programming or help of the systems developer.

7. Auto Generation of Letters & Reminders

PowerCollect provides a bulk notification engine that handles batch and individual processing of letters, telegrams and SMS messages. Kollect supports various document formats including Excel, PDF, Text, HTML, XML, etc. The built-in template manager allow for mail-merges to be easily done for all forms of notifications.

8. Dynamic Worklist Generation and Assignment

Worklist Generation and Worklist Assignment go hand in hand as the facilitate their execution. For generating the appropriate worklists, PowerCollect facilitates workload re-balancing continuously. The ability to balance Collectors’ workloads through easy-to-use visual graphics user interface makes it a very powerful experience. In order to make optimum use of Collection personnel, collection managers must be able to quickly react to changes in collector’s availability or productivity to maximize collection effectiveness.

In the case of Worklist Assignment, PowerCollect also support skills and personality profiling matching to the relevant Customers. For example, collectors who have b personalities (dominant or influential) can be assigned to the Customers who require assertive treatment actions in the earlier delinquent cycles, whereas those that are more delinquent (Recovery stage), good negotiation skills are required to persuade and seek timely payments.

9. On-line Host Updates (Suspension or Reactivation)

In Collection and Recovery, sometimes the extreme actions of stopping services are required to accelerate payments from delinquent Customers.

PowerCollect supports the required integration with the host systems to temporarily or permanently discontinue the services that are rendered. PowerCollect supports reverse updates to the host systems that are done elegantly in real-time or batch mode.

For Banking, PowerCollect can fetch and update Action (Block) Codes to various hosts systems including CardLink, SemaCard, SilverCards, Card- Pro, etc, using ISO 8583 standards for Blocking and Unblocking the Accounts on-line, real time.

For Telecom / Utilities, PowerCollect supports the concept of Partial Barring (Soft block) and Permanent Barring (Hard Block) of delinquent accounts, leveraging the messaging systems for host integration, in conjunction with the Service Provisioning systems.

10. Future Proof Data Model (Customer Centric)

It is imperative for today’s systems to be able to support the Customer Centric data model. Kollect ’s data model is designed to be future proof as it very deeply supports the Customer Centric paradigm throughout the application. Each Customer may have multiple Accounts, and each Account may have multiple Products or Sub-Products. In addition, Kollect caters for multiple Customers to be linked quite easily and elegantly to ascertain household or Holdings Company risk exposure. This information can be easily displayed on the user interface or generated into an informative report.

This is a major strength of the system and in addition to having a very b individual behavioral analysis; we facilitate the computation of a Customer Collectability Score too. We are able to support the company’s senior management’s desire of controlling the Risk Management of the respective Customer’s Relationship, via such capabilities. Kollect is able to take into account the delicate balance between Relationships, Receivables and Retention of the priceless Customer !

11. Performance Monitoring

The Performance Manager has three major components - performance tracking, target management and incentive management. This module allows for effective performance monitoring of activities like number of calls made, promises (PTP) recorded, value of the total promises, targets met, targets missed, etc. There are many real-time charts that allow the individual collectors and their respective teams to be tracked and measured for their effectiveness. Collection Managers can customize the view of the live charts and maintain a unique dashboard to make best use of all the data the Collectors have spend valuable time accumulating.

12. Basel II Compliance Framework

With the advent of the Basel II compliance push made by most Central Banks, there is a ber justification to further leverage the Collection and Recovery areas in managing risk better. One key expectation of the Basel II framework is to ascertain risks posed by each Account. PowerCollect supports this need quite elegantly as we believe that the best location to assess the Risks of the relationships is in the transactions of Collection & Recovery. Hence, our scorecards can be run every week, month, quarter or year, to support such initiatives. By implementing PowerCollect, the financial services organization inherits a comprehensive Collection Risk Management Framework to help its Basel II compliance better.

13. Business Intelligence Reporting

PowerCollect provides for current performance metrics, financial transactional information, summaries, and other types of crucial information that rolls up across all Customers, Accounts, Teams, Collectors, Products, and Locations via a sophisticated reporting platform called PowerReports.

A variety of metrics are generated, including Aging Accounts by Cycle, Inflow-Outflow Reports, the number of Customers Assigned, Customers collected, Amounts collected with insufficient funds, Successful promises, Broken promises, etc. More than 20 reports are provided as part of the base application. PowerReports allows one to modify, add and manage the entire reporting needs of the organization. PowerReports supports many different databases (Oracle, DB2, Informix, SQL Server, PostgreSQL, MySQL, etc.) and generates output in many formats including HTML, PDF, Excel, XML and ASCII.

14. 3rd Party Management (Legal, Outsourced Collection Agency, Repo & Auction)

Managing of 3rd parties can be undertaken in two ways. The simple way of generating Worklists of Accounts or Customers for 3rd parties is provided in PowerCollect. The other alternative way is supported by PowerAgency, where on-line updates and files distribution is required by the enterprise. Here, the software application can be hosted either within the enterprise or at a secure ISP to ensure that the data that’s provided to the 3rd parties including their updates provided back to the enterprise is secure.

The processes of supporting Assign, Recall and Updates of files can be undertaken in either one of these environments.

15. Flexibility - Customizable & Open Platforms, Databases and Operating Systems

Kollect provides open choices for Databases and Operating Systems. PowerCollect supports all major Databases (Oracle, DB2, SQL Server, Sybase, Informix, PostgreSQL, MySQL, etc.) and Operating Systems (Windows Adv. Server, Linux, Solaris, HP-UX, AIX, OS400, etc.).

Kollect ’s PowerApps are built using Java and XML technologies. The core engine of the application is known as the framework layer and is actively enhanced by the Kollect R&D team. Kollect provides many tools to enable the enterprise IT team members to have complete control and flexibility in maintaining the application, GUI, Rules, Data Model, Reports and Workflow. The source code for the customizations are in the form of XML files and are actually provided to the enterprise for ease of maintenance and changes in the future. There is no lock-in with such phenomenally advance flexibility!

16. Holistic View of the Customer (CRM)

PowerCollect supports the 360-degree view of the Customer as an integral part of the Collector’s arsenal in chasing for payments. PowerCollect brings the amalgamation of three major paradigms in to a single application. They are:

  • Transactional Details (Financial Systems)
  • Customer Interactions (CRM Systems)
  • Intelligent Decisioning (Profiling & Scoring Engine)

As such, you can:

  • Have easy access to vital information of the entire financial transactions, Collection attempts, Payments and Interactions history to facilitate rapid response to the customers on any issues, waivers or disputes
  • Ensure that Customers receive personalized reminders and messages by knowing their preferred contact methods and interaction timing
  • Predict, with a high degree of accuracy, who should be targeted with the Collection and Recovery efforts to ensure better cash flow and improved profitability

Kollect Systems is a leading technology provider of Revenue & Arrears Collections, Debt Recovery and Agency Management Software Solutions. Kollect provides specific solutions to help its Customers focus on their clients reduce arrears and optimize profits throughout their Revenue and Profitability Lifecycle. As experts in Revenue & Arrears Collections, Debt Recovery and Agency Management, Kollect continuously brings enterprise level scalable software technologies to the doorstep of its Customers. This helps to reduce Arrears Delinquency, Bad Debt and Improve Tracking & Profitability. Kollect, being a MSC status and TUV Quality certified company has its global HQ in Malaysia and leverages on partners for regional presence in ASEAN, Asia South, Middle East and Africa.

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