Leading Asian bank streamlines collections process with rt360 Collections Management System

Slippage reduction by ~40 bps and ROA improvement by ~8 bps

About The Client

The client is a large Asian bank, with an asset size of over USD 90 billion.

Implementation snapshot

0 million

Customers

0 million

Accounts/facilities

Branches

Users

3 - 3 months

Phased implementation

Summary

The bank was faced with numerous challenges, including a growing number of customers and branches, and a non-strategic approach to collections caused by manual processes, delays in collaborating between branches, units, and departments, and lack of data-driven insights. Acknowledging the need to strengthen their current process, the bank embarked on a journey to automate their collections process and to adopt a more customer-friendly approach through omnichannel engagement. These issues necessitated the bank to focus on streamlining their collection process to ensure operational and cost efficiency. They collaborated with BCT Digital to implement the rt360 Collections Management System, with outstanding results.

The challenge:

Massive customer volume and large number of branches
Inability to strategize collection process based on customer riskiness
Operational inefficiencies due to manual collection processes
Difficulty in obtaining timely updates from branches, call centers, and field collection executives
Issues in generating valuable collection related insights, primarily due to lack of collection analytics and reporting capabilities

Transformation:

The client chose to collaborate with BCT Digital to implement their IP Product rt360 Collections Management System at their premises. The phased engagement was completed in an accelerated time frame of 3-6 months. Part of BCT Digital’s rt360 Credit Risk Suite, the rt360 Collections Management System helps in automating and streamlining the collection process end-to-end. The following business-critical functionalities were packaged as part of the product:

Prioritization & bucketing: Utilizes configurable rules for prioritization, handles exceptions by products and business lines, and employs machine learning algorithms to identify patterns like self-cures and early payers. Includes detailed plans for collections and tracking.
Actionable strategies & workflow: Supports a strategy tree for optimal action selection, integrates with communication and payment systems, and allows for customized workflows including on-the-spot decisions and audit trails.
Monitoring & follow-ups: Enhances monitoring through geo-tagging of agents, uploads of field data, and centralized document storage. This system captures detailed follow-up actions and outcomes to optimize collection routes and strategies.
Analytics & reporting: Provides comprehensive analytics on portfolio performance, delinquency trends, and efficiency metrics. Offers insights into optimal contact timings and goal achievements, aiding in strategic adjustments and performance enhancements.

Results:

Today, the bank uses rt360 EWS to monitor credit exposures above INR 25 crores, which makes 70% of its loan portfolio. rt360 EWS has strengthened its ability to monitor accounts and ensure asset quality.

rt360 EWS enables 100% compliance with RBI and DFS mandates
Exceeds the expected regulatory coverage of INR 50+ crore exposure
935+ corporate customers with a total exposure of INR 1.46 lakh crore are proactively monitored, along with 360-degree borrower profiling
Customized dashboard and reporting for senior management
End-to-end automation of data collection, alert generation and workflow configuration for faster decision-making
Tremendous savings by automating CRM forms processing

We highly value our partnership with BCT Digital, they have enhanced our ability to better serve our customers and offer competitive prices while at the same time significantly improving our profitability across product lines.

Results:

An automated and efficient collections machinery:

Reduction in slippages by ~40 bps over a quarter
Improvement in RoA by ~8 bps over a quarter
Improvement of NIM by ~13 bps over a quarter
Improved cashflow forecasting ability

Awards & Recognition

BCT Digital ranks in Chartis RiskTech100 2024 report for third consecutive year

BCT Digital ranked again among top 100 RiskTech companies by Chartis Research

BCT Digital ranks among
Chartis Research’s top 100 RiskTech companies 2022

Chartis _RiskTech — Rising star of the year at the
RiskTech100 2021

Game changer — FinTech Innovator of the Year 2019

Ciso_Leader_ship — Overall Risk Management Solution
Provider of the year 2019

business-steeves — Innovation of the year at the Stevies International Business Awards 2019

Disruptive — Best FinTech Solution of the Year

technovit — TECHNOVITI 2020 award for
rt360 Early Warning System by Banking Frontiers

entrepreneur — Most Enterprising
business of the year 2021

exellence-award — Best Technology Innovator of the Year Award for rt360 Early Warning System 2020

fintex — Finalist for Fintech Scaleup
of the year 2020

rt360 is a risk management product suite to manage the entire risk portfolio of banks and financial institutions that includes credit risk, capital allocation, pricing risk, liquidity risk, model risk and operational risk.

rt360 is designed by bankers, risk practitioners and technology specialists with a Business First, Technology Next approach, empowering banks and financial institutions to focus on their credit growth and profitability while managing their risks. The product is fully designed and made in India to address the complexities of the financial sector globally. The suite comprises of five distinct products to manage each of the risk portfolio.