Successfully Managing Big Ticket NPLs: The Importance of Dedicated Collections Teams
The new economic landscape is pushing businesses that manage Big Ticket NPLs to adapt to the challenges of the post-pandemic era. Digital collections tools and self-service platforms are on the rise and have empowered lenders to work more efficiently with their customers.
While a digital-first approach may bring increased collections rates for customers with unpaid bills and missed installments, that is not the appropriate method for portfolios mostly comprised of Big Ticket mortgages and SME loans. Due to the limited agents' experience and financial literacy, customers usually don't get a proper explanation for the plans they are proposed to follow. Also, agents work with short-term goals rather than trying to offer a holistic solution to the customers who don't see the amount of their debt reducing.
Financial institutions with proven experience in NPLs tend to follow a "High Balance" approach to address the mentioned challenges. They set dedicated teams with Relationship Managers (RMs), that seek to build strong customer relationships by following a more tailored approach. Their goal is to offer a sustainable solution to the organisation's customers and positively impact their delinquency status.
Do you want to learn more about the benefits of High Balance teams for your customers and organisation?