Why Traditional Collections for Non-Traditional Loans Doesn’t Work.
Imagine a perfect collections world – a world where all loans, subprime and prime, were paid on time. Admittedly that’s a fantasy scenario, yet we are seeing collections departments that live in a similar fantasy world – a world where tradition equals best practices. Problem is these so-called best practices aren’t working anymore as non-traditional loans become more commonplace. And the number of charge-offs and decline in portfolio values are proof that traditional just won’t cut it anymore.
In advance of my upcoming Key Note at the Re3 Conference, Wednesday, November 18 in Scottsdale, I spoke with Auto Remarketing about the need for a new approach. Lenders called to innovate and improve on KPIs are asking, “How do I either shift expenses that I used to deploy in charge-offs to the front side to accelerate my return and mitigate loans from going to charge-offs; or how do I increase my expense line to mitigate charge-offs as long as I’m maintaining an effective ROI?”
The Auto Remarketing 3 Questions article explores some of these challenges and my Re3 Keynote address will go into more detail about how new data insights are adding up to impressive ROI numbers for lenders of all sizes.
Read the article here: