Many lenders and other organizations with substantive delinquency and recovery portfolios have chosen to outsource their debt collections efforts to third-party debt collection agencies (DCAs). These relationships are normally managed manually, often from an Excel spreadsheet.
Not surprisingly, this approach can be a nightmare in cases where the client uses dozens of debt collection agencies to collect.
Many of these lenders would love to automate the entire process from assignment of the accounts to paying the debt collection agencies. Katabat has worked with clients to configure their management platform to do just that.
The process normally goes something like this:
- Clients use Katabat’s Strategy Engine to assign or reassign accounts to the debt collection agencies based on the rules they write in the strategy engine. They can also leverage the system to generate invoices based on the billing rules and payments made by their customers.
- Katabat will educate clients on how to use the system and set up billing and business rules that clients can manage in the platform.
- The Katabat platform exports account data to the respective DCAs, based on the assignments.
In addition to the automation benefits, the Katabat platform can recall portfolio assignments if the client is not happy with the DCA’s performance or if the pre-approved variables change. It can also apply billing rules that incorporate highly customized payment structures.
BuchiRamReddy Chittepu is Technical Lead for Katabat, where he has helped financial institutions in the United States, United Kingdom, and Australia deploy the Katabat platform. He previously worked for Sapient and IBM Global Process Service.