CGI helps large Credit Union maximize the effectiveness of collections treatments and resource utilization.
The challenge
>This large credit union faced productivity challenges related to a fast-growing portfolio of consumer and credit card loans. Additionally, it was experiencing rising delinquencies and charge-offs, resulting from the tightened credit market. The credit union wanted a collections solution that incorporated customer information, risk-based segmentation and automated treatments in order to prioritize work based on risk level and, in turn, maximize the effectiveness of collections treatments and resource utilization.
The solution
>CGI helped this large credit union transition from traditional age-based collections to sophisticated risk-based collections by combining CGI’s industry-leading CACS collections solution with its advanced decision management tool, Strata Enterprise. CGI also provided business process consulting and change management services, resulting in the complete reengineering of the collections department, positioning the organization for future transformation and growth.
We are taking strategic steps to ensure our collections operations improve and adapt with current market conditions. CGI’s expertise in the credit industry combined with their technology solutions made them the right partner to help us achieve our strategic goals.” Senior Vice President of Consumer/Credit Card Lending
Results to date
By transforming its collections approach, this large credit union has become a more cohesive, strategic and analytically driven organization. The credit union has a new methodology for testing collection strategies, evaluating performance and making improvements. The result is enhanced agent productivity and collections effectiveness.
Key benefits delivered
- Transition to a single, integrated collections platform
- Collector productivity improved by 20- 25%
- Credit card charge off rates relative to the industry improved about 30 base points
