Revolutionizing
Collections with AI
Unlocking a new era of efficiency and customer satisfaction
through intelligent automation. This presentation outlines a high-
level strategy for an autonomous, responsible AI-powered
collections system designed to optimize recovery rates, enhance
customer relationships, and ensure compliance.
by Himangi Mishra
System Workflow: From Data to Action
Customer Data Ingestion
Real-time collection of diverse customer data, including payment history, demographic
information, and behavioral patterns.
Predictive Decision Logic
AI-powered models analyze data to segment customers and predict delinquency risk,
recommending optimal intervention strategies.
Automated & Targeted Actions
System executes personalized outreach and offers, ranging from proactive reminders to
tailored repayment plans.
Continuous Learning Loop
System monitors outcomes, retrains models with new data, and adapts strategies for
ongoing optimization and improvement.
The Power of Agentic AI
Autonomous Activities Human Oversight & Intervention
• Risk scoring and customer segmentation. • Complex negotiation and high-value accounts.
• Automated communication (emails, SMS reminders). • Addressing customer escalations and complaints.
• Personalized offer generation for low-risk cases. • Defining ethical guidelines and system parameters.
• Real-time data ingestion and model retraining. • Reviewing model performance and bias detection.
• Compliance checks and audit trail generation. • Strategic decision-making and policy adjustments.
Responsible AI Guardrails
Fairness & Equity
Implement bias detection algorithms and ensure equitable treatment across all customer
segments, avoiding discriminatory outcomes. Regular audits will confirm impartiality.
Explainability & Transparency
Develop interpretable AI models that provide clear reasons for decisions, fostering trust
and enabling effective human oversight.
Regulatory Compliance
Embed legal and ethical guidelines into the system design, ensuring adherence to data
privacy (e.g., GDPR, CCPA) and consumer protection regulations.
Security & Privacy
Robust data encryption, access controls, and anonymization techniques to protect
sensitive customer information.
Measuring Success: Key Business Impact
Quantitative Outcomes (KPIs) Qualitative Outcomes
Reduced Delinquency Rates: Target a 15-20% Enhanced Customer Experience: Personalized,
reduction in accounts moving into severe delinquency. empathetic interactions lead to higher satisfaction.
Cost Savings: Aim for a 10-15% reduction in Brand Reputation: Position Geldium as a leader in
operational costs associated with manual collections ethical and innovative financial solutions.
processes.
Increased Recovery Rates: Project a 5-10% Scalability: Easily adapt to growing customer bases
improvement in total debt recovered. without proportional increase in operational overhead.
Improved Efficiency: Enhance agent productivity by Fairness & Trust: Transparent and unbiased
automating routine tasks. processes build long-term customer loyalty.
Inputs: Fueling Intelligent
Decisions
The system's effectiveness hinges on a rich and diverse set of inputs, constantly feeding
the AI models with the most current and relevant data.
Transactional Data
Detailed payment histories, transaction types, and account balances provide the
foundation for financial behavior analysis.
Demographic & Firmographic Data
Age, income, location, industry, and company size for businesses help contextualize
customer profiles.
Interaction History
Past communications, agent notes, and customer service interactions inform future
engagement strategies.
External Data Sources
Economic indicators, credit bureau data, and public sentiment can provide broader
context for risk assessment.
Decision Logic: The Brain of the
System
At the core of the system lies a sophisticated decision-making engine, powered by advanced
machine learning models that analyze inputs to predict behavior and prescribe actions.
Customer Segmentation
Utilizes clustering algorithms to group customers based on risk profiles and behavioral
patterns (e.g., "high-risk," "temporarily distressed," "low-risk").
Propensity Modeling
Predicts the likelihood of repayment, default, or response to specific interventions using
historical data.
Intervention Optimization
Recommends the most effective communication channel, timing, and offer type for
each customer segment to maximize recovery while minimizing negative impact.
Adaptive Strategy Adjustment
Real-time feedback loop allows the system to fine-tune its logic based on the
effectiveness of previous actions.
Next Steps & Strategic Imperatives
To move forward, we must focus on phased implementation, continuous improvement, and robust governance.
1 2 3
Pilot Program Initiation Continuous Model Regulatory & Ethical
Refinement Governance
Launch a controlled pilot with a
specific customer segment to Establish a dedicated team for Form an oversight committee to
validate initial assumptions and ongoing AI model monitoring, continuously review system
gather performance data. retraining, and bias mitigation to compliance, ethical implications, and
ensure peak performance and adapt to evolving regulations.
fairness.
