Amid the global economic slowdown due to the COVID-19 outbreak, Singapore-based debt management company Collectius embraces the innovative data-driven solutions provided by TransUnion (NSE:TRU) to further strengthen its business operations in the Philippines. In its recent subscription to said services,Collectius was able to detect that as much as 46% of 318,000 consumers who had collection accounts have low to medium risk scores, which translates to high rates of recovery.
A trusted credit management servicing company employing fintech and innovation, Collectius continues to strengthen its position as the preferred debt purchaser of consumer non-performing loans (NPLs) in the ASEAN region.
“With TransUnion, we become more intelligent. We have more accurate data, which means that our system can target which strategy is going to be more effective so that we can support the customers to become debt-free again. We can adapt installment payment solutions tailored to their capacity,” said Gustav Eriksson, Collectius Group founder and CEO.
Customers who have then successfully paid their obligations are given proof of settlement, which means that no further collections of the same may be executed. Their data is also updated with TransUnion, helping improve their credit score. The higher the score, the better their chances are of acquiring financial services such as loans from banks, lenders, or other financial institutions to help them achieve their financial goals.
In more mature markets like Europe and the US, it is customary for TransUnion to work closely with businesses like Collectius. The data-sharing agreement provides the latter with valuable insights that will yield desired results with faster turnarounds. Apart from the 46% low to medium risk consumers, TransUnion’s Custom Portfolio Solutions service helped Collectius readily identify those who have active spending on their credit cards (8%), changed addresses in the last six months (2%), and changed contact numbers in the last six months (2%).
In addition, TransUnion’s comprehensive suite ofsolutions for finance businesses help them target various stages of the entirecredit life cycle. This includes fraud solutions, highly accurate identificationof consumer credit standing through monitoring and segmenting of positive andnegative credit behaviors over time, skip tracing of “missing” customers, and alertsfor changes or updates in customer behaviors, among others.
“We’re fortunate that these innovations and technologies that forward-thinking agencies across the world deploy are already in the Philippines. TransUnion’s stringent data quality standards and auditing processes also ensure efficiency and effectiveness, providing businesses with abetter understanding of consumers. This ultimately helps them make moreinformed decisions on who to trust and also use that understanding to buildexperiences that contribute to consumer trust,” said Pia Arellano, TransUnion Philippines president and CEO.
Gold standard in collection
The threat of COVID-19 notwithstanding, news of harassment and widespread privacy breaches by online lending apps in the exercise of their collection policies also broke recently and maimed the industry. While the relevant government agencies are looking into the issue and have ordered the shutdown of several of these apps, industry expert Collectius weighs in.
“As a consumer, you need to be careful when you choose where you borrow money. You need to check who’s behind it, who are you dealing with — that’s the consumer’s responsibility. The government also plays a role here, particularly in ensuring that the Consumer Protection Act is duly implemented and consumer agencies make sure that creditors, collectors, and the whole financial industry are acting responsibly,” Eriksson said.
Considered the gold standard in debt management all over the world, the company employs what it calls the “Collectius way of collections” — one that is rooted in good morals, compliance with local and international regulations, and a personalized, tailored approach.
“We don’t like to see complaints, we like to see compliments,” Eriksson said. “We find that when we approach the customer with humility, respect, and dignity, most customers respond positively to that. What we are specializing in is connecting with the customer, opening the dialogue with them, and finding the best solution for their specific needs. We provide each and every one with options tailored to them, because everybody’s situation is different, and that is what makes us successful.”
Apart from this, Collectius also ensures that all customers who undergo its processes end up more financially literate than they were before. They gain knowledge about the accumulation of interest and the different fees and structures that banks and creditors add as a result of an NPL, and fully grasp the advantages of becoming debt-free in the end. In the same way, TransUnion also champions responsible borrowing among consumers.
“While a collection account in one’s credit report negatively affects his credits core, it’s not a dead end. Apart from gaining back your credibility with financial institutions, settling obligations also helps the economy especially during trying times like this,” Arellano concluded.
TransUnion is a leading global risk and information solutions big data company that provides consumer reports, risk scores, analytical services, and decisioning capabilities exclusively to member businesses. TransUnion uses the power of information for good to help facilitate the ease of doing business in the Philippines and to contribute to nation-building in this emerging market. For more information about TransUnion Philippines and its suite of solutions, visit the website https://www.transunion.ph
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Collectius is a trusted restructuring partner to banks and financial institutions in Asia with operations in Indonesia, Philippines, Singapore, Malaysia, and Thailand. Its business is to purchase portfolios of non-performing consumer loans and recover them by supporting its customers to become debt-free using the ''Collectius way of collection.'' The company is offering a customer-centric approach and operates a data-driven collection platform powered by machine learning and digital first communication. Collectius is bringing foreign direct investment, providing employment opportunities and high-quality training of its staff. Collectius is funded by Stena, a Swedish shipping conglomerate and the largest ferry operator in the world.
TransUnion is a global information and insights company that makes trust possible in the modern economy. We do this by providing a comprehensive picture of each person so they can be reliably and safely represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call this Information for Good.® TransUnion provides solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people in more than 30 countries. In the Philippines, we are a major credit reporting agency and offer a number of specialist services in acquisition, portfolio review, and management; fraud, identity, and risk management; and collections. We support organizations across a wide variety of sectors including finance, retail, telecommunications, and insurance.