Fair Isaac Corporation (NYSE:FIC), the leading provider of analytics and decision management technology, today announced the immediate availability of Fair Isaac Debt Manager solution 7, the first available product of the Fair Isaac Decision Management Suite.
Debt Manager 7 has been designed specifically to help lending institutions profitably manage the growing volume of delinquencies they face.
Debt Manager 7 arrives at a time when financial institutions are actively seeking ways to minimize loan losses, mortgage foreclosures and credit card write-offs, which are on the rise globally. In the US, the Federal Reserve reports that 30+ day delinquencies are up 25 percent for credit cards and over 90 percent for residential loans. Debt Manager 7 enables resource-constrained lending institutions to manage a greater number of delinquent customers quickly without the need for additional collections staff.
"Financial institutions are facing a dual threat: unprecedented numbers of delinquencies and serious internal resource constraints," said David Lightfoot, vice president, product management at Fair Isaac. "Debt Manager 7 can pinpoint the area of greatest ROI for allocating collections resources, and then work out an optimal arrangement with the customer on the first attempt."
More specifically, Debt Manager 7 incorporates Fair Isaac Collection Scores, allowing collectors to prioritize delinquent customers based on risk, so collection time and resources can be allocated toward the customers that are most likely to respond.
Conversely, time and resources can be reallocated away from less risky delinquent customers, who are more likely to "self cure." Because of this, creditors can generally expect a 15 to 20 percent improvement in collection strategy effectiveness compared to a subjective segmentation of accounts.
Debt Manager 7 also empowers representatives to arrange workout plans with delinquent customers in real time, on the first telephone conversation. The end result is greater efficiency, improved recovery rates and reduced losses - all without the need for additional collections staff.
"Collections has moved to center stage in the current environment, not only for revenue recovery, but also to increase profitability," said Dennis Moroney, research director at TowerGroup, the leading strategic advisory firm in banking and payments. "Lenders are looking for solutions that go beyond automation to include targeted credit tools that will enable them to make actionable decisions that improve the overall performance of the portfolio."