UK CRM vendor Portrait Software is releasing a new package that helps financial institutions identify customers that are most likely to default on future payments.
Portrait says its new Pre-Delinquency Management software drives processes for identifying customers likely to fall into delinquency and then triggers the "fair treatment strategies" in order to help reduce risk.
As consumer debt rises, banks are experiencing more defaulting customers, says Portrait. The new technology identifies as early as possible any customers showing signs of "stressed financial behaviour" before they start to default.
The new package combines sophisticated predictive analytics and process management to improve the efficiency and effectiveness of the debt management lifecycle, whilst applying fair treatment strategies. The vendor says this approach enables potential problems to be discovered early and sensitively managed and monitored.
Nick Randall, Portrait Software's CEO, says traditional methods and software tools used by banks to deal with bad debts are clumsy and one-dimensional that simply enable the organisation to react to delinquency after it has occurred.
Portrait Pre-Delinquency Management helps financial services companies accurately predict and manage customers that are struggling financially," says Randall.
"Being able to predict, treat and prevent delinquency early increases customer retention periods and provides the option to manage out people who are always going to be bad debtors. Both approaches reduce costs and increase profits," he adds.