ICICI Bank - Analytics for Debt Management

The Problem: During the global economic crisis, most banks observed higher delinquency rates amongst their customers. It was imperative therefore for banks to take steps to recollect their loans. India, being a country of widespread geographies, heterogeneous customer base and low-tele-density, posed a hurdle for the collection teams of the bank. Above that the collection teams were using different philosophies and varied collection strategies for managing the delinquent pool. Non-standard practices across locations led to the emergence of local pockets of excellence and increased allocation turnaround time (TAT).

The Solution: A system was implemented with a model that aims at optimal allocation of delinquent customers, given the resources and man-power constraints. All the relevant customer information flows from the collection workflow system and internal sources to a repository in the data warehouse of the bank.

The Result: This centralized allocation has aided man-power rationalization. Now automated and centralized allocation could be done by using 80% less manpower than was used earlier for credit cards and personal loans.