FICO Government Solutions Modernize Collections

© 2017 Fair Isaac Corporation. All rights reserved. 1

EXECUTIVE BRIEF

“Today, the approach for many state governments is to centralize and move in the direction the State of Maryland has moved. It’s a lot more efficient to do it this way, when you have a single standard for collecting debt.” Anthony Fugett State of Maryland Department of Budget and Management

State agencies collect a variety of accounts receivable, from overdue fees, fines and child support to reimbursement for program overpayments. Centralized operations collecting on behalf of other state functions may be handling hundreds of debt types. Although what is collected differs, how collection takes place is increasingly important to all organizations. Traditional “one size” approaches are giving way to targeted strategies shaped by analytic insights about how best to treat each account. Agency staff have tools for creating and changing strategies, making real-time decisions, and automating routine steps and interactions with consumers across channels. Results are rising above resource levels.

Collect in the way most likely to succeedFICO is a global leader in automating and improving processes and the decisions that drive them. We help you increase collections efficiency, adapt more easily to regulatory change, and improve staff morale and consumer satisfaction. Our complete collections solution lets you segment accounts based on common characteristics and analytic insights, target most-likely-to-succeed treatments and automate multichannel collections processes. Freed from routine tasks, staff focus efforts where they have the most impact on payment behavior. Your organization collects more with the resources you already have in place, increasing the flow of funds for state priorities and initiatives.

Intelligent automation for collecting more without spending more

EXECUTIVE BRIEFFICO® Government Solutions Modernize Collections

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• Automation and simultaneous management of any number of targeted collections processes. By creating strategies (tailored sequences of collections actions) for each segment and decision rules to move accounts through them, staff can convert time-consuming manual processes into automated background processes that occur in real time without user intervention. Rules may trigger multiple events, such as tagging an account with a new status and rerouting it, generating a notice to the consumer, setting a follow-up date, sending an alert to an agent screen and updating a manager’s dashboard. Centralized organizations responsible for accounts receivable across multiple state agencies and functions can quickly set up and simultaneously manage any number of unique collections processes for each client, each scalable to handle whatever volume of accounts they receive.

• Intelligent multichannel communications. The “last mile” of collections strategies—the actual interaction with consumers—can also be automated. Many consumers prefer virtual agents as a convenient, discreet way to be reminded of missed payments. Intelligent communications management selects the best contact channel (online, SMS, voice, email, in-app), timing and message for each account based on your situation-specific rules as well as results of past communications and individual contact preferences. Virtual agents can also offer self-serve options for recipients to pay or select a payment plan. In any automated interaction, clients simply tap a button to chat with a real person.

Enabling successful collectionFICO provides solutions at both the federal and state levels for a wide range of accounts receivable functions, including collecting on employee benefits and Supplemental Nutrition Assistance Program (SNAP) overpayments, defaulted student loans and traffic violation debt. We also work with a centralized collections capability with plans to collect over 400 debt types. Several of these implementations tie in with Treasury Offset Programs.

Whatever the type of receivables being collected, and apart from achieving agency-specific objectives, each agency gains these overriding benefits:

• Confidence that every account is being worked—given its characteristics and current status—in the way most likely to succeed.

• Increased productivity and cost-effectiveness by focusing collections staff—always the most expensive resource—where they make the most difference.

Here are some of the technology enablers that are delivering these benefits and making a difference in collections performance:

• Granular segmentation of accounts for effective targeting. Staff specify criteria for automatically segmenting and queuing accounts at entry and dynamically reassign based on collections actions and results. They can create reusable filters, applying them to any segment for further differentiation, and add new data sources, customer characteristics and analytic models to improve separation and treatment targeting.

Results from organizations using FICO collections

solutions:

+20% collector productivity

+40% daily processing volume

+10% collected amount

-30% average account

process time

+100% revenue collected annually

Results from organizations using FICO collections

analytics:

+15–20% recovered amount, from

collection scores

+5–20% recovered amount, from

outplacement optimization

© 2017 Fair Isaac Corporation. All rights reserved. 3

• Lifecycle case management with variable views that capture real-life complexities. Collection staff can create lifecycle case management strategies and view account progress at both client and obligation levels. Case management also includes joint-and-several capabilities for handling multiple debt accounts for the same client and multiple clients associated with a single account.

• Modifiable best practices templates. Complete collections solutions come with dozens of templates incorporating best practices for dynamically populated forms as well as correspondence, installment plans, agent scripts, pop-up guidance and alerts. Templates can be modified and new templates built using drag-and-drop tools.

• More efficient deployment of internal and external resources. Strategies may include best-practices-based scripts and pop-up guidance to help internal collectors adhere to targeted treatments, remember to convey disclosures and comply

with regulations. Where accounts are outsourced, analytics and automation follow your rules to make assignments and track all interactions with outside agencies. Analytics can mathematically identify the best outplacement match for each account. Agency management solutions also perform account recall, replacement and reconciliation, and calculate commissions based on performance.

• End-to-end process transparency and audit trail with dynamic management reporting. Every step in every process is captured, along with the information used (e.g., account characteristics data, rules and analytic scores), actions taken and result. Even the correspondence generated can be instantly reproduced. Drag-and-drop tools make it easy to generate ad hoc, on-demand and recurring reports at any level of aggregation and build real-time dashboards with custom views. Centralized collections operations can quickly tailor reports to the specific needs of each state client and deliver seamlessly to existing management systems.


Features Traditional Collections Modern Collections

Segmentation Little or none, “one size fits all” Granular, based on account characteristics, decision rules and analytic insights

Prioritization Based on fixed measures such as amount due or length of delinquency

Dynamic generation and queuing of tasks according to segment assignments and collection actions/results

Contact Calls, emails, letters—same for everyone

Intelligent automated selection of best channel, time, message for each account

Follow-through Largely manual, often inconsistent Dynamically updated automated workflows trigger multiple next actions, audit all steps

Reporting Manual collection of information from multiple places, time-consuming, many opportunities for error

All information captured in a single repository, “push-button” generation of ad hoc, on-demand and periodic reports as well as dynamic management dashboards

Outsourcing Separate, largely manual management of each external collections resource

One solution for managing all external collections resources; automated account assignment, recall, replacement, reconciliation and commission calculation

Results from organizations using FICO intelligent communications for

collections:

80% right-party contact

79% self-serve pay or promise

69% conversion from promise to pay

70% average customer

satisfaction

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To learn how FICO can help

your agency collect more

without spending more:

Email us at [email protected]

Or call 1 888 342 6336

• Champion-challenger to drive continuous improvement. Complete solutions incorporate tools for systematically comparing current collections strategies against proposed alternatives via controlled

contests on randomized samples of accounts. Winning challengers producing better results can be immediately promoted to champion status and applied to a wider swath of accounts.

Software

FICO Government Solutions Modernize Collections