The Future of Collections

The future of collectionsDigital collections and the consumer

©Experian 2

“The future has already arrived.

It's just not evenly distributed yet.”

— William Gibson

5/25/2017 Experian Public

©Experian 3

Consumer debt

5/25/2017 Experian Public

85.3

77.8

44.9

31.8

28.126.3 25.5

29.3

2009 2010 2011 2012 2013 2014 2015 2016

To

tal cre

dit c

ard

ch

arg

e-o

ff d

olla

rs, $

Bil

lio

ns

15%↑

Regulatory trends

• Regulatory uncertainty and pressure

• CFPB limits call attempts

• FCC ruling “one and done”

• Vendors are an extension of FI

Client trends

• Banks keep debt in-house

• 3rd Party consolidation

• Subprime credit card lending is up

• Sub prime auto lending is up

©Experian 4

The seismic-shift to digital has changed how consumers interact with their providers

• Consumers are hyper-connected and have numerous

preferred channels

• Multiple touch-points lead to a purchasing decision

• A personalized, consistent experience across channels

is the new standard

“Multi-channel customers

are increasingly the most

sophisticated, demanding

and time-starved

customers; ….”

— Deloitte Consulting

Demand for frictionless and seamless customer experience

5/25/2017 Experian Public

©Experian 5

The takeover of the Millennials

0

10

20

30

40

50

60

70

80

90

2014 x xx 2050

Millennials Gen X Baby Boomer Silent

Mill

ion

s

5/25/2017 Experian Public

©Experian 6

Generational Financial profiles

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Average

VantageScore®

Average

debt

Average debt

excluding mortgage

Estimated

average income

Bank card

balances

Bank card

utilization

Millennials 625 $52,120 $26,485 $34,430 $3,403 43%

Generation X 650 $125,000 $26,670 $50,400 $6,752 41%

Baby Boomers

& Silent709 $87,438 $19,217 $46,340 $5,603 25%

National

average667 $88,313 $23,089 $46,790 $5,340 34%

©Experian 7

Connecting with the digital consumer

5/25/2017 Experian Public

©Experian 8

Elevate collections into the digital age

5/25/2017

eResolve™ gives your clients a digital communication channel

Manual collections practices Consumer in the digital world

#

No Caller ID

eResolve™

Frictionless consumer experience

• Digital (mobile and web)

• Non-threatening

• Resolution-driven

• At the convenience of the consumer’s place and time

• Self serve / cost effective

©Experian 9

eResolve process

Debt resolution options

5/25/2017 Experian Confidential

Invite

consumer

• Email link

• Web site

• Text link

Get started

• View debt

details

Pay in full

• Cure Options (Pre C/O)

• Pay in full in 1 payment

• Pay in full over time

• Defer payment up to 14 days

Negotiate to pay less

• Settle in 1 payment

• Settle over time

• Defer payment up to 14 days

Counter offer

• Multiple options to

resolve

• Several attempts

to negotiate

Offer accepted

Consumer has already accepted the payment plan

Payment set-up

• Client-consumer

agreement

• Regulation E disclosure

• E-signature

• Payment portal

Summary

• Debt details

• Debt resolution details

• Payment schedule

• Client-consumer

agreement

Consumer

logs in

©Experian 10 5/25/2017 Experian Confidential

999

2017$75.00$300.00

4111111111111111

May

2020

[email protected]

Adam K Fellow

©Experian 11

• Consumer preference has changed to digital

• To maintain performance a digital strategy must be employed

• Engage the consumer in the digital medium they prefer:

– Text

– Avatar

– Email

Conclusion

5/25/2017 Experian Public

Experian.com/eResolve