Qualco reveals the five steps to a successful debt portfolio blueprint

21 March 2017 | Newsdesk
Qualco reveals the five steps to a successful debt portfolio blueprint

Qualco has revealed the five steps to a successful debt portfolio blueprint in an incisive white paper released today entitled ‘The Debt Portfolio Blueprint; How to build a managed service model to improve collections and recoveries’.

The authoritative report arrives as creditors and debt buyers are becoming increasingly focused on customer rehabilitation and retention, and are considering outsourcing services to make significant gains in this area. The scale of the provisions they must hold against bad debts, the cost of acquiring new customers in a highly competitive market place, and achieving higher levels of cost control and profitability are also key challenges they face. In contrast, many creditors are looking to rationalise their supplier base to retain sufficient oversight and reduce risk in response to the FCA’s requirements around systems and controls (SYSC).

In its unique position as an intermediary between creditors and outsourced service providers (OSPs), Qualco offers independent advice on how to move to – or consolidate – an OSP model and how to measure its success. You can read the white paper here.

Qualco is keen to highlight that some UK debt collection agencies are now achieving net promoter scores (NPS) of high 30s through to mid 40s. This is exceptional and points to the new reality that the debt collection and recovery industry is no longer delivering merely brand protection for clients, but is ensuring a positive journey for customers in the collections process resulting in brand enhancement.

This provides benefits to debt providers, regulators and customers and demonstrates that the managed service model is a very effective way of helping customers whose accounts fall into arrears.

Christian Jacob, managing director at Qualco UK, comments, “Most original creditors have a long wish list of development work they want to undertake but may lack either the technical ability or resources to do it. OSPs can help bring these ideas to life, testing existing models and forecasts to select the best solution for the creditor’s overdue accounts.

Often OSPs find that because they have been through this process many times with banks, utilities, retailers and debt investors, they can expedite processes faster than clients are able to do on their own and come up with a broader range of potential options. We hope that our white paper is of value to organisations that are seeking to reassess their model.”