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Omni-Channel Approaches to Collections
519 #00144
PRESENTED BY:
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Andrew DominoDirector, Bridgeforce
Vance ClipsonSenior Principal, Nuance
Heather BentleyCitizens Bank
Omni-Channel Approaches to Collections
Chris RathsackCitibank
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Digital Collections TimelineIntegrating Digital Tools into Collections Performance for Two Decades
20
03
–2
00
7
• Working with multiple industry leaders to deploy and refine digital collections
• E-mail, online and text
Early Adopters
• Digital techniques are expanded to secured asset classes
• Offerings expanded from Collections and Recoveries to include Loss Mitigation (info capture and offer)
Into Secured
20
08
–2
01
0
• Focus upon Collections performance essentially stops, and digital capabilities shift to compliance
• US adoption of digital collections by new institutions slows substantially
20
11
–2
01
5 Regulatory Focus
• Early adopters are radically reducing outbound calling, and some already collect over 50% of payments digitally
• Collections performance may not yet support but digital collections is critical now
2nd Wave
20
16
–2
01
8
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Omni-Channel Defined“Integration and orchestration of channels such that the experience of engaging across all the channels someone chooses to use is as, or even more, efficient or pleasant than using single channels in isolation.”
Wikipedia (Link)
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Why O-C May Soon Become O-DPlethora of data, all pointing the same way
The path to the future of financial services is beyond thinking Omni-Channel but Omni-Digital
Omni-Channel is still critical to collections, understanding customer needs is the key
Board of Governors of The Federal Reserve System (Link)
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Credit Card Debt – By Age
$0
$2,000
$4,000
$6,000
$8,000
GENERATION Z GENERATION Y GENERATION X BABY BOOMERS SILENT GENERATION
The Urban Institute (Link)
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0.00
0.05
0.10
0.15
0.20
25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 65 67 69 71
Credit Card Delinquency Rates
Millennials
Gen X
Baby Boomers
Frac
tion
w\D
ebt
120
Day
s D
elin
quen
t
Federal Reserve Bank of St. Louis LINK
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Mobile Activity by Banked Households Checked email
about an account
Checked balance or transactions
Text message alert
Bill payment
Transferred money between accounts
Deposited a check electronically
Sent money to others
44.1
35.4
34.0
19.0
26.513.2
25.412.2
18.05.6
13.75.9
20132017
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Where Do You Start
§ Establish or clarify your operating model vision
Relevant Approach for Lenders:§ Beginning the Journey (Buy versus Build) § Keeping momentum while journey is underway§ Embrace the change to strategy Omni-Channel will bring
Start With the End in Mind
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Driving Value with RequirementsDefine operating model–strategy, tactics, performance
Defined requirements are still crucial–future state capabilities, future customer use case scenarios
Embrace partnerships where you need it(technology providers/external support)
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Data is Your Currency
Tech Republic (Link)
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Data is Your CurrencyCustomer enters early stage delinquency
OFFER: Receive a minimum payment credit for completing personal finance data sheet and syncing external financial data
Comprehensive risk profile shows increased default risk since DDA is different bank
OFFER: Receive a multiple incentive offers to switch over DDA account or link primary accountCustomer
accepts an offer and links account
Detailed financial data identifies restricted consolidation opportunity
OFFER: Accept a lower APR consolidation loan and close revolving accounts accept current CC w/Personal Finance Program participation
OFFER ACCEPTED– Customer consolidates and attends virtual PFP sessions
Customer makes progress in personal finances and debt management–starts building a Wealth Management portfolio
$Customer loves her banking relationship
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Avoid the Pitfalls Common Snag§ Assuming that big data is the Easy Button!
Less Obvious Snag§ Omni-Channel will never be set it and forget it § Looking for all channels to do all things
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Avoiding the PitfallsAssuming that Big Data is the Easy Button
§ Interrogate your existing data points in collections, you know what works!
§ Ensure the future state requirements include what is successful vs. what is new
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Avoiding the Pitfalls Trends to identify:§ Online activity pre
delinquency§ Online engagement
while past due§ Keyword searches§ Journey Drop-outs
Omni-Channel requires maintenance –Plan for it
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Avoiding the Pitfalls§ Assess your current Multi-Channel
state, know what your customers like§ Use this intelligence to guide channel
development and deployment § Account for a crawl-walk-run approach
in your design, focus on deploying one complete channel at a time
Incomplete channelcapabilities
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How to put this strategic approach to work
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What does an omni-channel platform look like?
Digital Voice Security Analytics
Intelligent Engagement Platform
AI for Prediction AI for AnalyticsAI for ConversationAI for Prediction AI for Conversation
Website Messaging IVR Social IoT TVMobile
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Establishing a foundation
519 #00144
Investment typically not even; must prioritize
Work across silos
Channels/staff can’t be in competition
Ideally one leader with top-down responsibility
21© 2019 Nuance Communications, Inc. All rights reserved.
– Must decide on guiding philosophy
– Drive or deflect to low cost channel
– Or honor customer preference– Hybrid not as successful
Customer—or cost-driven?
22© 2019 Nuance Communications, Inc. All rights reserved.
– Especially important if customer-focused– Avoid weak channel; creates poor CX– Ideally accomplish similar tasks– Customers don’t want to change channels
Each channel strong
23© 2019 Nuance Communications, Inc. All rights reserved.
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Three best practice tips for success
25© 2019 Nuance Communications, Inc. All rights reserved.
– Automated-to-live is often best
– If IVR then to live agent
– If virtual assistant then to live chat
– If mobile app then to VA or phone
Best channel combinations to start
– Maintain authentication– Context of conversation– Reduce agent handle time– Central data repository
Maintain context across channels and journey
26© 2019 Nuance Communications, Inc. All rights reserved.
Leverage analytics for continuous optimization
− Influences staffing− Informs customer
journey− Data-driven design
27© 2019 Nuance Communications, Inc. All rights reserved.
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Three common pitfalls to avoid
Misalignment of people processes
Disparity in contact center support by modality
Data must be aligned, available, updated
Agent desktop important
Capabilities should be equalized
29© 2019 Nuance Communications, Inc. All rights reserved.
Don’t make customer change context
Channel escalation difficulty
IVR to live or digital
Web to VA or live chat
Mobile app to VA or phone
Outbound to phone
Tracks back to channel combos
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Don’t try to solve complex inquiries in automated channels
Getting channel parity wrong
Two views on parity
Accomplishing same things in each
Comparison of automated-to-automated,live-to-live is better
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What it can look like
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Delta AirlinesConnecting outbound and inbound channels to improve experience & containment
– IVR & agents aware of outbound text, email & voice messages– 5.2% containment rate (goal was 3%) – $5 million savings
Are you calling about your flight to Sarasota? We’ve got you rebooked. Would you like to hear your new flight information?
Yes
You have been rebooked on Delta Flight 2329 departing at 8:10 pm. You are checked in and ready to board.
Due to weather conditions, Delta Flight 129 has been canceled. We are in the process of rebooking you.
Text or voice
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A collections call to that traveler… Platform detects mobile # and sends a text rather than leaving voice mail
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Key Takeaways
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Key Takeaways
Optimize with Reporting &
Analytics
Enable Easy Channel
Escalation
Strong Cross-Channel
Connectivity & Context
Clear Objectives &Requirements
Big Bites Lose
Momentum