They have started to shift away from time-based collections management activities (the 30-, 60-, 90-day bucket approach). Instead, the focus is migrating towards the development of collections strategy that is based on the underlying risk of the individual – to look at how he is performing on all of the obligations in the total relationship to determine the likelihood of repayment and the associated activities that can facilitate that repayment. They’ve found they can’t rely purely on traditional models anymore because consumer behavior has dramatically changed and an account only approach doesn’t reflect the true risk and value of the individual’s relationship.
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