MANAGE RISK SERIES PART 3— 3 Steps to Implement a Strategic Risk and Recovery Plan in 2021
DRN is a 2020 Champion Partner with Allied Solutions
As our nation begins to move slowly toward recovery from the COVID-19 shutdown, businesses are shifting their focus towards future growth and other implications of temporary closures and changing regulations. Many are implementing cautious strategies that will allow our industry to push toward normalcy, albeit slowly.
When planning for 2021, there’s a lot of uncertainty surrounding risk and recovery services, making it nearly impossible to best anticipate and plan for every possible scenario. However, there are certain strategic approaches lenders can take to be prepared for another uncertain year.
View Part 1 here: 3 Reasons Collections Data is Critical to a Risk Management Strategy in 2021
View Part 2 here: 3 Ways to Manage Data Effectively & Efficiently
3 Steps to Transform Risk into Reliable Revenue
Step #1: Target and Locate Assets Faster
Being able to assess your license plate and borrower data quickly can help your institutions increase recovery rate, prevent charge-offs, and reduce repossessions timelines. Access to large databases via partners and cloud technology can help build large data pools that aggregate larger amounts of data or integrate with existing technologies. This is an important step in mitigating expenses associated with locating and recovering vehicles.
Step #2: Leverage Data with Advanced Search Capabilities
With the ability to search for specific attributes, filters, and other criteria, your institution can appropriately sift and flag certain locations or collateral accounts to more smartly allocate or redirect needed resources. This can help accelerate your recovery process and give you a more accurate picture of your portfolio.
Step #3: Build Unique, Customized Reports
Receiving information on your entire vehicle portfolio can present an impossible challenge to sort. Reports could help confirm self-reported addresses with address scoring, identify locations with clusters of target vehicle sightings for contact addresses, accounts with special considerations (such as the Servicemembers’ Civil Relief Act (SCRA)), or reports seeking specific collateral location alerts. These could include:
- Impoundment
- Salvage
- Theft
- Export
- Physical location
DRN reports can include heatmaps to best assess the best day of the week and time for making contact or recovering vehicles.
The bottom line: The most important component of any risk and recovery strategy is to establish how to manage and validate your borrower information in an efficient, effective manner. By having an accurate way to locate your collateral, you can lower delinquency and collect earlier, which can mitigate recovery expenses in the long term.
DRN is a 2020 Champion Partner with Allied Solutions.
About DRN
DRNsights Puts Real-time Vehicle Location Data and Advanced Analytics to Work.
From lending to insurance to collections to repossession, DRNsights software and services bring unique insights into your customers and portfolios that can transform your business processes and drive revenue. Our vast network of license plate recognition cameras feeds an expansive database of vehicle images. Our platform of analytic solutions then uses these images to help detect fraud, reduce risk and find vehicles with more speed and accuracy than relying solely on public data.
About Allied Solutions
Allied Solutions, LLC is one of the largest providers of insurance, lending, and marketing products to financial institutions in the US. Allied Solutions uses technology based products and services customized to meet the needs of 4,000 clients along with a portfolio of innovative products and services from a wide variety of providers. Allied Solutions maintains over 15 regional offices and service centers around the country and is a subsidiary of Securian Financial Group, Inc. Allied Solutions has tools and resources that can help you keep an eye on the potential areas of impact, protect against collateral losses, and stay on top of any new events, bulletins, and regulations as they happen.