Collections is truly customer friendly

Posted on December 2, 2012 by Chris Warburton

This week I have had some great conversations on the nature of collections and its link to a positive customer experience.

In a company the collections process frequently has negative perceptions associated with it.  However at its core the process is about helping customers and solving their issues….it really is truly customer focused.

Used correctly and supported, there is also opportunity to not only help individual customers but also provide the insight to help improve the entire customer experience, helping retain high value customers. (in addition to reducing expense)

Talking with a wider audience, this concept clearly challenges some existing perceptions and requires looking at the customer lifecycle holistically across organisations.   (happy to explain more if needed)

However once explained there has been some great support…. has been really good to hear positive comments, and obviously great for improving customer experience long term.

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Skyscrapers, Condos and market stress

Posted on November 20, 2012 by Chris Warburton

I have been reading quite a bit recently about indirect economic indicators for growth, boom and bust within the economy.

Some interesting examples;

  • Hairdressers, coffee shops, art galleries (in order) – On a local level, this can be an indicator of increasing disposable incomes.  However rapid expansion could be a sign of boom and potential bust in the economy.
  • Baltic Dry Index – Measures shipping volumes.  A great indicator of global trade.  (we are in a slow down now)
  • Skyscraper Index – Measures national aspirations, economic expansion, and bubbles.  The more skyscrapers being built the higher the likelihood of economic recession it seems.

These indicators are informative and in many ways can leading indicators of issues we need to watch for.

The skyscaper index is of particular concern when contrasted against the building boom in Toronto.

Another potential indicator pointing to the need to stay prepared.

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Secured loans – Insurance and Fraud

Posted on November 10, 2012 by Chris Warburton

This week I have been discussing secured lending, always considered somewhat different to world of unsecured loans (credit cards and utilities).

Typically losses associated with secured loans are lower (in proportion to the assets). After-all there are always the actual physical assets to fall back on.

As such this has always been considered less of an issue of credit risk, rather operational risk. (A key risk being the valuation of the asset is incorrect, has been misrepresented or there is just downright fraud).

However it is not as different as it first may seem; behavioural modelling, fraud modelling and process controls are all equally applicable. Indeed I have been hearing of several companies looking for unsecured experience in order to run a secured portfolio.

Undoubtably there is a lot to learn from each discipline and it is good to know the skills are being considered transferable. It will lead to stronger processes and controls.

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