Debt Collection & Recovery
In today's environment, how do you transform your debt resolution function and create lasting success? Hoist Finance, the consumer debt purchaser working with banks and financial institutions across Europe, has had tremendous resultswith digital collections using the FICO® Platform. In fact, Hoist Finance and FICO just won the Best Use of Technology category in the Credit Excellence Awards 2021. Congratulations to our partners at Hoist Finance on this achievement!
By rolling out a centralized approach to managing decisions on customers, Hoist has improved the customer experience, streamlined operations and sped up the process of change. Hoist Finance is now making 1 million real-time decisions each day in the UK and Germany using FICO technology — including FICO® Blaze Advisor® decision rules management system, part of the FICO Platform — to establish the best actions for borrowers.
Centralizing Decisions on a Single Platform
Hoist Finance manages 18 million accounts across 10 countries, and before working with FICO customer decisions were managed using 14 different systems. Hoist sought to unify decisioning technology across all regions, deploy new strategies faster, and improve results through testing and simulation. It also wanted to make better decisions by calling on multiple external data sources and using advanced predictive models and AI.
“We have hit all of our key targets with FICO Blaze Advisor,” said Fabian Zwanzig, head of operations for Germany, Hoist Finance. “This solution has delivered game-changing results for the business, with a clear path now plotted for extensive, future benefits. We have exceeded the targets in our business case by 400 percent.”
Hoist Finance is currently live with the FICO® Platform’s rules management system in Germany and the UK, with five more countries due to go online in the next few months. Each country involves some 20,000-40,000 rules that are automated in the FICO Platform. The solution automates customer engagement and negotiation processes, enabling Hoist to resolve 20 percent of cases automatically at the group level, and 33 percent of cases in the UK. The platform operationalizes predictive models and scores and provides multiple, simultaneous challenger strategies.
- 30% increase in data-driven, digital payment plans
- 87% decrease in plan breakage rate
- 97% lower carbon footprint for each digital resolution, resulting in annual savings of 442 tons of carbon for every 10% increase in digital collections – the amount of carbon that 35.3 people in the UK generate in a year
Further Collections Success
In addition, Hoist Finance used FICO’s collections technology to standardize its approach across countries, with seven countries using it so far.
“It is central to our business proposition that we deliver the best possible customer experience for our bank clients’ customers,” added Zwanzig. “We also wanted to improve profitability by standardizing our collections approach across the company. It was, therefore, essential to find a scalable system that works 24/7, 365 days a year. FICO’s technology put us in position to streamline operations and standardize our approach, whilst maintaining best-in-class standards for the borrower experience. We expect to deliver a further €8.5 million in operational efficiencies as our debtor book grows 40 percent in phase two.”
Part of Hoist Finance's success came from FICO’s Decision Requirement Analysis Workshop (DRAW) process, which helped them turn their business needs into a comprehensive set of structured decisions. And by standardizing on a single platform, Hoist has rolled out the technology to new countries in just three months. As FICO's vice president and general manager for EMEA, Steve Hadaway, put it, "Their multi-country, platform approach is the future of collections.”
Want to learn more about the importance of digital decisions across the customer lifecycle? Read The Forrester Wave™: Digital Decisioning Platforms, Q4 2020.