Using New Technologies to Enhance Business

Performance

Donna Weaver, RNN Group

Session desription

• Recent and pending changes to collections and recovery regulations have stretched existing systems and resources, resulting in ever rising compliance costs and risk. Learn how top U.S. credit issuers and their collection channel partners are using an innovative technology to improve the consumer’s experience, enhance collections, and increase regulatory compliance. Representatives from two leading-edge companies will highlight ways to streamline your operations by leveraging the latest technologies.

Leverage data & technology outsource model

• First Vendor best of breed partner/outsource model• Jim Van Schaik, Lexis Nexis• Donna Weaver, Amex, Fortune 500 financial shared

service center

• Build the most efficient, cost effective, secure service model in the marketplace• Clients focus on core competency to achieve

maximum results

When to invest in technology for data?• Security and compliance• Find people faster• Reduce expense of finding people• Increase resource scalability• Cash flow business

Procuring DataTRADITIONAL waterfalls

• Vendor sets• BK, Deceased, Military (sometimes phone, address)

• 1-2 vendors

• Verified Place of employment, 60-120 days to get all hits• 2-4 vendors (as high as 6)

• Phones (RPC -verified phones- & raw)• 1-3 vendors

• Raw place of employment• 1-3 vendors (as high as 8)

• Verified Banks, 30 days• 1 vendor (high as 2)

• Raw bank• 1-4 vendors

Internal ResourcesGoal: achieve maximum results in shortest period of time

Testing new providersManage files through waterfall(s)Use internal collection and/or skip tracing

resources (no value efforts) Work through raw data, typically 3-10% verify

Manage not buying same bad data multiple timesManage multi vendor security and compliance

docs

ROI

• Cost of data• Cost of resources• Security and compliance

Leverage technology and best of breed data partnerFirst data outsource model – one-to-many

connectionMulti product, multi-tier product types under one

umbrellaTechnology to streamline processing and custom

build waterfall rules within systemFull security and compliance

One to Many Custom Waterfall Services ProductsCategory RNN Product Name

Bankruptcy, Deceased

Military

HR Direct Verified POE database

Data Verified POE

Manually skiptraced Verified POE

VERIFIED BANK Data Verified Bank

Manually skiptraced Verified Bank

RPC (Verified Phone)search: source raw POE data

RPC (Verified Phone)search: phone providers

Raw Place of Employment

Raw bank searchDisabled/social security Raw Phone and address

STREAMLINE COLLECTION

FTE SVCWarm lead transfers (RNN transfers above to you when we

have them on the phone

VERIFY NON-RNN DATAOur call center can verify our your raw data (designed if

you have a data source RNN doesn't have

VERIFIED POE

RPC

RAW DATA

BK, DE, MIL SEARCHES

2) VERIFIED (Phone RPC) search and verify process (Rate 5)

3)Warm transfer (Rate 6)

2) Manually verified POE RPC phone hits (Rate 3)

and/or

RNN Manual POE Search No hi ts run through 8 data source waterfa l l - hi ts sent to ca l l center to veri fy / no hi ts returned to cl ient to expedite or through next product

1) Manually Verified (from raw data) hits (Rate 2)

3) Self employeed

4) Disabled or social security debtor leads front or back of waterfall, remove from asset searches (Rate 4)

RNN can recirculate no

hits back through entire

process at any point in the process

(RNN can perform a BK, DE and/or Mil search before any or all POE

searches)

4)Raw phone search to return unverified phones at per hit (Rate 7)

1) Back through HR Direct

and/or

and/or

RNN HR Direct Search (Rate 1) (returned in 2-3 bus iness days , PT and/or FT)

RNN multi-vendor waterfall flow (ED) example

Best of breed technology & data partner

One secure and compliant partnerRemove no value touch points in collection

environmentAccurate data fasterLower data costsScale resources on value addControlConsistencyVisibility

Cash flow

Leverage extended pay terms, Rev share contingency pricing modelDrive highest ROI, shortest period of time

Thank you!

Donna WeaverRNN Groupdonna@rnngroup.com818-601-7451866-466-5996, extension 700

Innovative Receivables Management in a

Changing Regulatory Environment

Agenda1. Challenges2. Solutions3. A Different Idea

Affect issuer, agency, legal, and debt sales

1.Downstream Information Supply Chain

2.Upstream Information Supply Chain

3.Debt Validation

4.Information Traveling with Debt (e.g. complaints)

5.Compliance Management

6.Vendor Oversight

7.Constant Change

Challenges

Solutions1. Existing systems and processes2. Build custom proprietary solutions3. A different idea - Exchange and Repository Solution

Convoke Overview►What We Do

• Secure third party data and document exchange and repository• Vendor oversight• Compliance management• Software-as-a-Service

►Initial Market Focus• Agency collections• Legal collections• Debt sales

►Market Adoption• Customer relationships with major credit issuers• 109 state level attorneys and 5 national legal networks• 22 national collection agencies• 119 registered debt buyers

Agency #1

Agency #2

Legal

Debt Buyer

Credit Issuer Third Parties

Single interfaceSystem of record integrationBi-directional information

2Measure, analyze, reportVendor oversight – audit/editCompliance management

Mobility across channelsCompliant & dispute trackingInternal/external audit tool

Exchange & Repository

31

Agency and Legal1. Issuer and third party data and

documents maintained together2. Common scoreboard3. Immediate access to data/documents

addressable at account level4. Document pre-load, ordering, delivery,

and tracking5. Case ready legal files6. Complaint tracking7. Debt validation and dispute resolution8. Upload data/documents from channel

partner based upon issuer criteria9. Audit and vendor oversight tools10.Easily move accounts among channels

Exchange FunctionalityDebt Buyers

1. Documentation available prior to or at time of sale

2. Document ordering and delivery3. Billing, cash collections, enforcement

of issuer/debt buyer contract terms4. Chain of title tracking5. Complaint tracking6. Audit and vendor oversight tools

Exchange MetricsMetric Dec

2011 Dec 2012 Dec 2013 Oct 2014

Accounts 6.2M 8.4M 11.1M 13.5M

% Increase 35% 32% 18%

Documents .8M 2.1M 3.2M 13.3M

% Increase 163% 52% 316%Supported Documents 3 20 59 86

% Increase 567% 195% 46%

Network Size 25 72 163 258

% Increase 188% 126% 58%

Agency Documents1) Affidavits2) Attorney Representation3) Cease & Desist Notice 4) Claim Package5) Complaint6) Debtor Correspondence 7) Demand Letter 8) Estate Insolvency Notice9) Estate Inventories

10) Correspondence11) Notice of BKY12) Notice to Creditors13) Other14) Power of Attorney15) Proof of Insolvency16) Settlement Letter17) Settlement Letters18) Promise to Pay

Issuer Documents1) Access Check

2) Affidavit

3) Application

4) Chain of Title

5) Change in Terms

6) Credit Agreement

7) Monthly Statement

8) Payment Copy

Large Bank Document Types

Legal Documents1) Additional Affidavit2) Adverse Outcome3) Answer . . .22) Hearing23) Judgment24) Judgment Copy Agreement25) Judgment Copy Contested26) Judgment Copy Default27) Judgment Copy Stipulation28) Judgment Copy Summary29) Judgment Copy Trial30) Judgment Execution

31) Judgment Renewal 32) Judgment Set Aside . . .51) Settlement Release 52) Stipulations Consent 53) Substitution of Attorney 54) Suit Filed 55) Summons56) Summons and Complaint57) Time Stamped Affidavit 58) Time Stamped Suit59) Vacated Judgment 60) Validation Documents

Large Bank Document Types (cont.)

Document Exchange & Repository

Vendor Oversight

Regulatory Compliance

Improved Consumer Experience

Improved Economics

• Bi-directional document mobility• Data and documents travel with accounts across channels• Detailed document order and delivery tracking controls

• Complete visibility to vendor performance metrics• Issuer/vendor see the same information• Internal/external audit tool

• Enables compliance with regulations• Loan files addressable at account level• Adaptable to changing regulatory environment

• Transparency yields improved consumer experience• Shortened timeline to resolve complaints and concerns• Analytics identifies area for process improvement

• Enhanced revenue and/or cost reductions for issuers• Cost reductions for collection channel partners• Improved collection rates

Adoption Drivers

Exchange Examples

Stocks and Bonds Shipping Telecommunications

Unsecured Lending Commodities Tickets

Change is hard, but it is possible

Appendix ASelected Screen Shots

Audit Detail

Audit History

Create New Complaint

Complaint Documents