collection system

7/28/2019 Collection System

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Collection system is a collection management system targeted to the Retail Lending segment of theFinance industry. The product is fully web-based and provides business components for automating thecollection process for the banks. Collection system was developed to manage the Collection cycle of thedelinquent accounts. The objective was to provide the banks with a solution to manage delinquentaccount tracking and the recovery process.

Salient features of Collections system Basic features of security and administration along with specific features like rule based case

allocation and follow-up systems.

Audit trial created by, created date, last updated by and last updated date, History of allmasters, logical delete for masters.

An administration module that takes care of the system parameters, the user maintenance andwork list definition.

Master maintenance of various entities like users, Agencies, Groups, Products, etc.

Categorization of the delinquent accounts and rule based allocation of the same to the Collectors.

Collection tracking along with the receipts, follow-up and customer response trackingfunctionality.

Facility to manage various legal activities including the repossession activity.

Letter Printing facility at various stages and for various purposes like First Bounce, Police,

Account Recall, etc. MIS Reporting facility for all the processes in the system.

MODULESCollection Rule ConfigurationThe rule configurator module consists of configuring the system for activities such as Queue definition,Agency/Collector maintenance, Agency to Queue mapping, Agency allocation logic, etc.

AllocationThis module allocates cases to collectors/agencies based on the configurations entered in the Ruleconfigurator module. It also provides for manual allocation, re-allocation, queue shifting etc.

Reminders for Delinquent AccountsOnce an account has turned delinquent, reminders are sent to the customer informing him of the same.This will be a centralized batch process which will pick up all accounts for which reminders have to besent.

Follow-up processAn account that has turned delinquent will automatically fall into the follow-up queue. The follow-upprocedure involves calling up the customer and reminding him that his account has turned delinquent. Ifthe customer promises to pay the installments due, the promise to pay schedule is also recorded.

Write-offWrite-off is the process in which all pending dues and future dues (if any) of the account will be let go by.When this activity is done the system will mark the account as Writen off and the account will be closed

Re-structuringFunction of this module is to provide the facility to the user to change the secondary terms viz. tenor,APR, frequency. In addition to that the non- financial particulars with respect to the client


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LOAN COLLECTION SYSTEM

Loan Collection system is a collection management system targeted to the Retail Lending segment of theFinance industry. The product provides components for automating the collection process for thebanks/institutes and was developed to manage the Collection cycle of the delinquent accounts. Theobjective was to provide the banks/institutes with a solution to manage delinquent account tracking andthe recovery process.

Salient features of Loan Collections system Basic features of security and administration along with specific features like rule based case

allocation and follow-up systems.

Audit trial created by, created date, last updated by and last updated date, History of allmasters, logical delete for masters.

An administration module that takes care of the system parameters, the user maintenance andwork list definition.

Master maintenance of various entities like users, Agencies, Groups, Products, etc.

Categorization of the delinquent accounts and rule based allocation of the same to the Collectors.

Collection tracking along with the receipts, follow-up and customer response trackingfunctionality.

Facility to manage various legal activities including the repossession activity. Letter Printing facility at various stages and for various purposes like First Bounce, Police,

Account Recall, etc.

MIS Reporting facility for all the processes in the system.

The modules included in the Loan Collection system are listed below:

I. ConfigurationII. Monitoring

III. Follow-upIV. LitigationV. AllocationVI. Repossession

VII. WorkflowVIII. Document PrintsIX. Reports

I. Configuration ModuleThe Configuration Manager in Loan Collection System facilitates the user to define queues andalso enables to map employees to the defined queues.

There are two Sub-menus in the configuration Manager.1. Queue Defini t ion

This sub-module helps in configuring different queues. The queues are of 2 categoriesAwareness queue and Delinquency queue.

Awareness queue is used to intimate customers on the installment falling due in thefuture and

Delinquency queue is used to deal with customers who have defaulted on theinstallment(s).

2. Queue-Employee Mapping

This sub-module is used by the System Administrator to assign queues to employee ofcollection agencies for follow-up on delinquent accounts. Every collection employee has


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to be mapped to a collection queue. All the queues defined in the Queue Definitionmaster will be listed under this sub-module. Maximum number of cases that can beallocated to each employee can also be defined.

II. Monitoring ModuleThe Monitoring Manager facilitates the user to capture follow-up details and it consists offollowing sub menus:

Under Construction Property Security Deposit Deficit Insurance Queue

Under Construct ion PropertyThis sub-module displays all cases granted under this category, x days (configurable) before theexpected completion date the cases are automatically populated via interface.

Securi ty Deposit Defici tThis sub-module displays all the cases where there is deficit in the core banking security depositamount and cases will move out of the queue if it is intimated to the collection system about the

replenishment of the security deposit via interface.

Insurance QueueThis sub-module displays all cases for which Insurance details are captured in the LoanOrigination system, x days (configurable) before expire of the insurance the cases areautomatically populated via interface. The user can directly update the insurance details,

III. Follow-up ModuleThis Follow-up module is used to Follow-up cases starting with Days Past Dues = 1. It hasvarious sub menus related to the follow-up of cases. The sub-modules are listed as below:

Pending Follow-up

Completed Follow-up Escalated Queue PTP Reminder Queue Follow-up Inquiry Follow-up Amendment Queue Change Address Investigation Queue Broken Promise Queue

Pending Fol low-upThis sub-menu will display list of cases which has Days Past Dues (DPD) >= 1. All these caseswill be displayed in Pending Follow-up Menu.

Completed Fol low-upThis sub-menu will display list of cases for which the Follow-up has been completed. The casedetails under this sub-menu will be seen only on the day the follow-up has been made. On EODthe cases will disappear from this menu.

Escalated QueueThis sub-menu will display list of case on which no action has been taken for a specific number ofdays (configurable), and the same is lying unattended under pending follow-up option.

Promis e To Pay (PTP) Reminder Queue


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This queue will display all the cases for which the customer has promised to make a payment ona schedule date. The user can view the details entered for reference. The cases will be seenunder this option until the promised date on which the payment is to be made.

Fol low-up Inqui ryThis sub-menu will display list of cases for which the Follow-up is completed. The user can viewthe history of the various follow-ups done.

Fol low-up Amendment QueueThis Queue will display cases for which the follow-up is made (for the same day of the follow-up).The objective is to help the user amend the follow-up details if incorrectly entered by the client.

Change AddressThis sub-menu is used to amend customer address.

Investigation QueueAny case where the follow up with the client is not clear i.e. Wrong Address or Wrong Number,the cases will flow to the Investigation Queue and user can also view the reason for which thecase has been registered in the investigation queue.

Broken Promise QueueIf any case is registered under Promise to Pay, and the client has not met his commitment, on theEOD of the promise date of payment by the client the case disappears from the PTP ReminderQueue and flows into the Broken Promise to Pay Queue. It displays all the details under promiseto pay option.

IV. Litigation ModuleThe sub-modules under Litigation are listed as below:

Meet Customer Notice to Customer Preparing Conclusion

Report Entry Queue Collection Agency Report Claim from Insurance Company File Suit Auction Data Entry Collection Workflow Expired Case Queue

Meet CustomerAll cases after x days (configurable) of the default in the installment amount are displayed in thisqueue. After the monitoring manager meets the client, the details of the meetings are captured inthis sub-module. If client repays the outstanding then the case move out of the queue else it willbe available in Notice to customer queue

Notice to CustomerAll cases for which the customer has not settled the outstanding after completion of MeetCustomer stage are displayed in this queue. Notice is prepared by the monitoring manageroutside the system and issued to the customer. The cases for which the notice is issued willmove out of this queue.

Prepar ing Con clus ion


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All cases for which Notice to Customer stage has been completed will be available in this sub-module. Conclusion report is prepared outside the system. After the conclusion is marked ascompleted the case moves out of this stage.

Report Entry QueueThis sub-module allows the user to select the next course of action. The user can select any ofthe following option:

i. Send to Collection Agencyii. File Suitiii. Auctioniv. Claim from Insurance Company

If the user selects Send to Collection Agency user will also have to select the name of theagency from the pre-configured master list. The case moves out of this sub-module and moves tothe queue based on the selected value.

Col lect ion A gency ReportIf the option selected in the Report Entry Queue is Send to Collection Agency the case will beforwarded to this sub-module. The user will have the option to close or resend the case to Report

Entry Queue stage.

Claim from Insurance Comp anyIf the option selected in the Report Entry Queue is Claim from Insurance Company the case willbe forwarded to this sub-module. The user will have the option to close or resend the case toReport Entry Queue stage.

File SuitIf the option selected in the Report Entry Queue is File Suit the case will be forwarded to thissub-module. The user will have the option to close or resend send the case to Report EntryQueue stage.

Auct ion Data EntryIf the option selected in the Report Entry Queue is Send to Collection Agency the case will beforwarded to this sub-module. The user will have the option to close or resend send the case toReport Entry Queue stage.

Col lect ion Workf low

Expired Case Queue

collection system

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